Red Cat (NASDAQ:RCAT) Stock Price Down 9.1% – Should You Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price was down 9.1% during mid-day trading on Wednesday . The stock traded as low as $6.71 and last traded at $6.77. Approximately 7,582,651 shares were traded during trading, a decline of 47% from the average session volume of 14,177,857 shares. The stock had previously closed at $7.45.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on RCAT shares. Roth Capital initiated coverage on Red Cat in a research report on Monday, June 1st. They set a “buy” rating and a $25.00 target price for the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research report on Friday, July 17th. UBS Group began coverage on Red Cat in a report on Wednesday, May 27th. They set a “buy” rating for the company. LADENBURG THALM/SH SH upgraded shares of Red Cat to a “strong-buy” rating in a research report on Wednesday, May 6th. Finally, Clear Str raised shares of Red Cat to a “strong-buy” rating in a research note on Wednesday, April 29th. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Buy” and a consensus price target of $21.40.

Red Cat Stock Performance

The company has a 50-day moving average price of $10.30 and a 200-day moving average price of $12.09. The firm has a market capitalization of $830.95 million, a P/E ratio of -9.67 and a beta of 1.29.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings data 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 net margin of 138.36% and a negative return on equity of 35.86%. The company had revenue of $15.47 million during the quarter, compared to the consensus estimate of $17.63 million. The company’s revenue was up 849.1% compared to the same quarter last year. Equities analysts predict that Red Cat Holdings, Inc. will post -0.68 EPS for the current year.

Insider Activity at Red Cat

In other news, Director Paul Funk II sold 165,028 shares of the company’s stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $11.50, for a total value of $1,897,822.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 12.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Red Cat

Several large investors have recently bought and sold shares of the company. Bank of America Corp DE boosted its position in shares of Red Cat by 407.0% during the fourth quarter. Bank of America Corp DE now owns 3,397 shares of the company’s stock worth $44,000 after purchasing an additional 2,727 shares in the last quarter. Royal Bank of Canada raised its stake in Red Cat by 76.4% during the 1st quarter. Royal Bank of Canada now owns 57,800 shares of the company’s stock worth $340,000 after buying an additional 25,031 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Red Cat by 63.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 229,259 shares of the company’s stock worth $1,348,000 after buying an additional 89,095 shares during the period. Goldman Sachs Group Inc. lifted its holdings in Red Cat by 28.7% during the first quarter. Goldman Sachs Group Inc. now owns 266,099 shares of the company’s stock worth $1,565,000 after acquiring an additional 59,334 shares in the last quarter. Finally, Cetera Investment Advisers bought a new position in Red Cat during the second quarter worth about $97,000. Institutional investors own 37.97% of the company’s stock.

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.