Red Cat (NASDAQ:RCAT) Shares Down 6.4% – Should You Sell?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) fell 6.4% on Tuesday . The company traded as low as $12.24 and last traded at $12.2260. 3,516,673 shares traded hands during trading, a decline of 78% from the average session volume of 16,313,604 shares. The stock had previously closed at $13.06.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on RCAT. Northland Securities set a $22.00 target price on Red Cat in a report on Tuesday, January 20th. Wall Street Zen raised Red Cat from a “sell” rating to a “hold” rating in a report on Saturday, March 21st. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a report on Thursday, January 22nd. Needham & Company LLC boosted their target price on Red Cat from $16.00 to $20.00 and gave the stock a “buy” rating in a report on Thursday, March 19th. Finally, LADENBURG THALM/SH SH boosted their target price on Red Cat from $15.00 to $20.00 and gave the stock a “buy” rating in a report on Tuesday, March 3rd. Two investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $20.67.

Red Cat Trading Down 4.3%

The company has a 50 day moving average of $13.73 and a 200-day moving average of $11.49. The firm has a market capitalization of $1.51 billion, a P/E ratio of -16.67 and a beta of 1.46.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings results on Wednesday, March 18th. The company reported ($0.17) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.14) by ($0.03). The firm had revenue of $26.24 million during the quarter, compared to the consensus estimate of $24.50 million. Red Cat had a negative net margin of 176.96% and a negative return on equity of 38.86%. As a group, sell-side analysts forecast that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Institutional Trading of Red Cat

Several institutional investors have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd boosted its stake in Red Cat by 1,825.1% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 54,152 shares of the company’s stock valued at $429,000 after purchasing an additional 51,339 shares during the period. Virtu Financial LLC bought a new stake in Red Cat in the 4th quarter valued at $196,000. Invesco Ltd. boosted its stake in Red Cat by 36.3% in the 4th quarter. Invesco Ltd. now owns 237,038 shares of the company’s stock valued at $1,880,000 after purchasing an additional 63,098 shares during the period. Vident Advisory LLC bought a new stake in Red Cat in the 4th quarter valued at $1,009,000. Finally, Janus Henderson Group PLC boosted its stake in Red Cat by 29.5% in the 4th quarter. Janus Henderson Group PLC now owns 47,115 shares of the company’s stock valued at $374,000 after purchasing an additional 10,723 shares during the period. 37.97% of the stock is currently owned by institutional investors.

Red Cat Company Profile

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.