Red Cat (NASDAQ:RCAT) Stock Price Down 8.8% – Here’s What Happened

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) fell 8.8% on Wednesday . The stock traded as low as $7.78 and last traded at $7.83. Approximately 12,833,778 shares changed hands during trading, a decline of 11% from the average daily volume of 14,440,552 shares. The stock had previously closed at $8.59.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the company. UBS Group assumed coverage on Red Cat in a research report on Wednesday, May 27th. They issued a “buy” rating on the stock. Clear Str upgraded shares of Red Cat to a “strong-buy” rating in a research note on Wednesday, April 29th. HC Wainwright assumed coverage on shares of Red Cat in a report on Wednesday, May 27th. They set a “buy” rating and a $20.00 price target on the stock. LADENBURG THALM/SH SH upgraded shares of Red Cat to a “strong-buy” rating in a research report on Wednesday, May 6th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Red Cat in a report on Friday, July 17th. Two research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Red Cat currently has a consensus rating of “Buy” and an average target price of $21.40.

Red Cat Stock Up 2.6%

The company has a market capitalization of $985.60 million, a price-to-earnings ratio of -11.47 and a beta of 1.29. The stock’s 50-day simple moving average is $10.38 and its two-hundred day simple moving average is $12.15.

Red Cat (NASDAQ:RCAT) last released its earnings results on Thursday, May 7th. The company reported ($0.22) EPS for the quarter, missing analysts’ consensus estimates of ($0.12) by ($0.10). Red Cat had a negative return on equity of 35.86% and a negative net margin of 138.36%.The company had revenue of $15.47 million for the quarter, compared to analysts’ expectations of $17.63 million. Red Cat’s quarterly revenue was up 849.1% compared to the same quarter last year. On average, sell-side analysts forecast that Red Cat Holdings, Inc. will post -0.67 EPS for the current year.

Insider Buying and Selling

In other Red Cat news, Director Paul Funk II sold 165,028 shares of the stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $11.50, for a total transaction of $1,897,822.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 12.50% of the company’s stock.

Institutional Trading of Red Cat

Large investors have recently made changes to their positions in the company. IFP Advisors Inc boosted its stake in Red Cat by 181.1% during 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 during the last quarter. Fifth Third Bancorp acquired a new stake in shares of Red Cat in the first quarter valued at about $33,000. California State Teachers Retirement System acquired a new stake in shares of Red Cat in the second quarter valued at about $34,000. 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. Finally, PNC Financial Services Group Inc. lifted its stake in shares of Red Cat by 294.6% in the first quarter. PNC Financial Services Group Inc. now owns 3,042 shares of the company’s stock worth $40,000 after buying an additional 2,271 shares in the last quarter. 37.97% of the stock is currently owned by hedge funds and other 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.