Red Cat (NASDAQ:RCAT) Trading Down 1.9% – Time to Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT) dropped 1.9% on Wednesday . The stock traded as low as $8.80 and last traded at $8.93. Approximately 3,874,825 shares traded hands during mid-day trading, a decline of 72% from the average session volume of 13,603,139 shares. The stock had previously closed at $9.10.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on RCAT shares. Roth Capital initiated coverage on shares of Red Cat in a research report on Monday, June 1st. They set a “buy” rating and a $25.00 price objective for the company. Needham & Company LLC reduced their price objective on Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a research note on Friday, August 7th. HC Wainwright reissued a “buy” rating and issued a $20.00 target price on shares of Red Cat in a report on Friday, August 7th. Clear Str raised Red Cat to a “strong-buy” rating in a report on Wednesday, April 29th. Finally, Wall Street Zen downgraded Red Cat from a “sell” rating to a “strong sell” rating in a report on Saturday, July 18th. Two analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Buy” and an average target price of $20.40.

Red Cat Stock Performance

The stock has a fifty day moving average price of $9.25 and a 200-day moving average price of $11.40. The firm has a market cap of $1.10 billion, a PE ratio of -11.02 and a beta of 1.31.

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

Insider Transactions at Red Cat

In other Red Cat news, Director Christopher R. Moe sold 20,000 shares of the business’s stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $10.51, for a total value of $210,200.00. Following the transaction, the director owned 200,502 shares in the company, valued at $2,107,276.02. The trade was a 9.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Paul Funk II sold 165,028 shares of the company’s stock in a transaction 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 disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 240,028 shares of company stock valued at $2,692,672. Company insiders own 12.50% of the company’s stock.

Hedge Funds Weigh In On Red Cat

Several large investors have recently bought and sold shares of RCAT. Kingsbury Capital Investment Advisors LLC boosted its stake in Red Cat by 22.7% during the second quarter. Kingsbury Capital Investment Advisors LLC now owns 13,556 shares of the company’s stock worth $144,000 after buying an additional 2,512 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in Red Cat during the second quarter worth $200,000. California State Teachers Retirement System boosted its stake in shares of Red Cat by 1,038.2% in the 2nd quarter. California State Teachers Retirement System now owns 1,585,167 shares of the company’s stock valued at $16,882,000 after purchasing an additional 1,445,899 shares in the last quarter. Concurrent Investment Advisors LLC increased its position in shares of Red Cat by 114.9% during the 2nd quarter. Concurrent Investment Advisors LLC now owns 66,384 shares of the company’s stock worth $707,000 after purchasing an additional 35,499 shares in the last quarter. Finally, GTS Securities LLC bought a new position in Red Cat during the 2nd quarter valued at about $153,000. 37.97% of the stock is currently owned by institutional investors and hedge funds.

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.