Red Cat (NASDAQ:RCAT) Trading Down 10.5% – Here’s What Happened

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) dropped 10.5% during mid-day trading on Thursday . The stock traded as low as $10.84 and last traded at $11.31. Approximately 10,956,859 shares traded hands during trading, a decline of 29% from the average daily volume of 15,533,849 shares. The stock had previously closed at $12.63.

Analysts Set New Price Targets

Several analysts have weighed in on RCAT shares. LADENBURG THALM/SH SH upgraded shares of Red Cat to a “strong-buy” rating in a research note on Thursday, December 18th. Northland Securities set a $22.00 price target on shares of Red Cat in a report on Tuesday, January 20th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Red Cat in a research report on Thursday, January 22nd. Finally, Needham & Company LLC raised their target price on shares of Red Cat from $12.00 to $16.00 and gave the stock a “buy” rating in a report on Tuesday, January 13th. Two research analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Buy” and an average price target of $19.00.

Red Cat Stock Down 10.5%

The firm’s 50-day moving average price is $10.63 and its 200 day moving average price is $10.17. The firm has a market cap of $1.35 billion, a P/E ratio of -25.70 and a beta of 1.50.

Red Cat (NASDAQ:RCAT) last posted its earnings results on Thursday, November 13th. The company reported ($0.16) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.09). The business had revenue of $9.65 million for the quarter, compared to analysts’ expectations of $8.18 million. On average, equities analysts predict that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Institutional Trading of Red Cat

Large investors have recently added to or reduced their stakes in the business. Moors & Cabot Inc. increased its stake in Red Cat by 65.6% during the 2nd quarter. Moors & Cabot Inc. now owns 280,825 shares of the company’s stock valued at $2,044,000 after buying an additional 111,225 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. boosted its holdings in shares of Red Cat by 31.1% in the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 157,704 shares of the company’s stock valued at $1,148,000 after acquiring an additional 37,407 shares in the last quarter. Truist Financial Corp bought a new position in shares of Red Cat in the second quarter valued at approximately $167,000. Rockefeller Capital Management L.P. acquired a new position in shares of Red Cat during the second quarter valued at approximately $546,000. Finally, Wealth Enhancement Advisory Services LLC bought a new stake in Red Cat during the second quarter worth approximately $180,000. 37.97% of the stock is currently owned by institutional investors and hedge funds.

About Red Cat

Red Cat Holdings, Inc (NASDAQ: RCAT) is a technology holding company that develops and delivers advanced robotics, autonomy, and sensing solutions for defense, national security, public safety and commercial customers. Headquartered in American Fork, Utah, the company brings together a portfolio of specialized operating businesses focused on unmanned aerial systems (UAS), mission management software, precision mapping sensors and engineering services.

Through its UAS segment, Red Cat designs and manufactures small to medium-sized fixed-wing and vertical-takeoff drones that support intelligence, surveillance and reconnaissance (ISR) missions.