Red Cat (NASDAQ:RCAT) Shares Down 7.2% – Here’s What Happened

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price traded down 7.2% during mid-day trading on Monday . The company traded as low as $8.78 and last traded at $8.93. Approximately 7,150,653 shares traded hands during mid-day trading, a decline of 48% from the average session volume of 13,715,996 shares. The stock had previously closed at $9.62.

Analyst Ratings Changes

Several research analysts have commented on RCAT shares. Wall Street Zen cut shares of Red Cat from a “sell” rating to a “strong sell” rating in a report on Saturday, July 18th. Roth Capital began coverage on shares of Red Cat in a report on Monday, June 1st. They issued a “buy” rating and a $25.00 price objective on the stock. LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a research report on Wednesday, May 6th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research note on Friday, July 17th. Finally, UBS Group began coverage on Red Cat in a report 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 assigned a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Buy” and an average price target of $20.40.

Red Cat Stock Performance

The firm has a 50-day moving average price of $9.25 and a two-hundred day moving average price of $11.40. The firm has a market cap of $1.12 billion, a price-to-earnings ratio of -11.23 and a beta of 1.31.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.21) by ($0.05). The business had revenue of $20.20 million during the quarter, compared to analyst estimates of $22.65 million. Red Cat had a negative net margin of 136.26% and a negative return on equity of 32.25%. Research analysts anticipate that Red Cat Holdings, Inc. will post -0.78 earnings per share for the current year.

Insider Transactions at Red Cat

In other news, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the company’s stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $10.63, for a total value of $584,650.00. Following the completion of the transaction, the director owned 489,874 shares in the company, valued at approximately $5,207,360.62. This represents a 10.09% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Christopher R. Moe sold 20,000 shares of the company’s stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total transaction of $210,200.00. Following the completion of the transaction, the director owned 200,502 shares of the company’s stock, valued at approximately $2,107,276.02. The trade was a 9.07% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 240,028 shares of company stock worth $2,692,672. 12.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Red Cat

Several large investors have recently bought and sold shares of the stock. BlackRock Inc. acquired a new stake in shares of Red Cat during the second quarter worth about $119,610,000. State Street Corp boosted its position in shares of Red Cat by 136.4% in the 4th quarter. State Street Corp now owns 6,612,153 shares of the company’s stock valued at $52,434,000 after purchasing an additional 3,815,310 shares during the period. Vanguard Group Inc. grew its stake in Red Cat by 9.0% during the 4th quarter. Vanguard Group Inc. now owns 6,000,037 shares of the company’s stock worth $47,580,000 after buying an additional 493,660 shares during the last quarter. Van ECK Associates Corp purchased a new position in Red Cat during the 2nd quarter worth approximately $27,193,000. Finally, Geode Capital Management LLC grew its stake in Red Cat by 13.4% during the 4th quarter. Geode Capital Management LLC now owns 2,520,524 shares of the company’s stock worth $19,991,000 after buying an additional 297,967 shares during the last quarter. Institutional investors and hedge funds 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.