Red Cat (NASDAQ:RCAT) Shares Down 1.7% – Should You Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price traded down 1.7% during trading on Monday . The stock traded as low as $12.26 and last traded at $12.46. 10,015,349 shares changed hands during mid-day trading, a decline of 36% from the average session volume of 15,559,760 shares. The stock had previously closed at $12.68.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on RCAT. Clear Str upgraded shares of Red Cat to a “strong-buy” rating in a research report on Wednesday, April 29th. Roth Mkm initiated coverage on Red Cat in a report on Monday, June 1st. They set a “buy” rating and a $25.00 target price on the stock. HC Wainwright started coverage on Red Cat in a research report on Wednesday, May 27th. They issued a “buy” rating and a $20.00 target price for the company. Needham & Company LLC raised their target price on Red Cat from $16.00 to $20.00 and gave the company a “buy” rating in a research note on Thursday, March 19th. Finally, UBS Group began coverage on Red Cat in a research note on Wednesday, May 27th. They issued a “buy” rating on the stock. Two research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Red Cat presently has a consensus rating of “Buy” and an average target price of $21.40.

Red Cat Price Performance

The firm has a market cap of $1.53 billion, a P/E ratio of -17.80 and a beta of 1.23. The firm’s 50 day moving average is $11.86 and its 200 day moving average is $11.66.

Red Cat (NASDAQ:RCAT) last released its earnings results on Thursday, May 7th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.12) by ($0.10). Red Cat had a negative net margin of 138.36% and a negative return on equity of 35.86%. The business had revenue of $15.47 million for the quarter, compared to analysts’ expectations of $17.63 million. The company’s revenue for the quarter was up 849.1% compared to the same quarter last year. As a group, analysts expect that Red Cat Holdings, Inc. will post -0.68 EPS for the current year.

Hedge Funds Weigh In On Red Cat

Large investors have recently modified their holdings of the stock. IFP Advisors Inc boosted its stake in Red Cat by 181.1% in the 3rd quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock worth $28,000 after purchasing an additional 1,720 shares in the last quarter. Fifth Third Bancorp bought a new stake in Red Cat during the 1st quarter valued at about $33,000. Montag A & Associates Inc. raised its holdings in Red Cat by 552.0% in the third quarter. Montag A & Associates Inc. now owns 3,260 shares of the company’s stock worth $34,000 after buying an additional 2,760 shares during the last quarter. California State Teachers Retirement System bought a new position in shares of Red Cat in the second quarter worth approximately $34,000. Finally, NFSG Corp lifted its stake in shares of Red Cat by 200.0% in the first quarter. NFSG Corp now owns 3,000 shares of the company’s stock worth $39,000 after buying an additional 2,000 shares in the last quarter. Hedge funds and other institutional investors own 37.97% of the company’s stock.

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.