Red Cat (NASDAQ:RCAT) Shares Down 7.5% – What’s Next?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price dropped 7.5% during trading on Monday . The stock traded as low as $10.47 and last traded at $10.5850. 2,903,548 shares changed hands during trading, a decline of 81% from the average daily volume of 15,257,425 shares. The stock had previously closed at $11.44.

Wall Street Analyst Weigh In

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

Red Cat Trading Down 5.1%

The company has a 50 day simple moving average of $11.60 and a 200 day simple moving average of $11.98. The stock has a market cap of $1.33 billion, a P/E ratio of -15.54 and a beta of 1.23.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings results on Thursday, May 7th. The company reported ($0.22) earnings per share for the quarter, missing the consensus estimate 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 business had revenue of $15.47 million for the quarter, compared to the consensus estimate of $17.63 million. The firm’s quarterly revenue was up 849.1% on a year-over-year basis. As a group, sell-side analysts expect that Red Cat Holdings, Inc. will post -0.68 earnings per share for the current year.

Insider Transactions at Red Cat

In other Red Cat news, Director Paul Funk II sold 165,028 shares of Red Cat stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $11.50, for a total value of $1,897,822.00. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 12.50% of the company’s stock.

Hedge Funds Weigh In On Red Cat

A number of large investors have recently modified their holdings of RCAT. IFP Advisors Inc increased its position in shares of Red Cat by 181.1% in the third quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock valued at $28,000 after acquiring an additional 1,720 shares during the last quarter. Fifth Third Bancorp acquired a new stake in shares of Red Cat in the 1st quarter valued at approximately $33,000. Montag A & Associates Inc. lifted its stake in Red Cat by 552.0% in the third quarter. Montag A & Associates Inc. now owns 3,260 shares of the company’s stock valued at $34,000 after acquiring an additional 2,760 shares during the last quarter. California State Teachers Retirement System bought a new position in Red Cat during the second quarter worth about $34,000. Finally, NFSG Corp boosted its stake in shares of Red Cat by 200.0% during the 1st quarter. NFSG Corp now owns 3,000 shares of the company’s stock worth $39,000 after acquiring an additional 2,000 shares during the period. 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.