Red Cat (NASDAQ:RCAT) Shares Down 6.2% – Time to Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price fell 6.2% during trading on Monday . The company traded as low as $10.24 and last traded at $10.44. Approximately 9,575,537 shares were traded during mid-day trading, a decline of 31% from the average session volume of 13,912,872 shares. The stock had previously closed at $11.13.

Wall Street Analyst Weigh In

Several research firms recently commented on RCAT. Roth Capital initiated coverage on Red Cat in a report on Monday, June 1st. They issued a “buy” rating and a $25.00 price objective for the company. Needham & Company LLC dropped their price target on shares of Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a report on Friday, August 7th. LADENBURG THALM/SH SH upgraded shares of Red Cat to a “strong-buy” rating in a research note on Wednesday, May 6th. UBS Group initiated coverage on shares of Red Cat in a report on Wednesday, May 27th. They set a “buy” rating for the company. Finally, Clear Str upgraded shares of Red Cat to a “strong-buy” rating in a research report on Wednesday, April 29th. Two equities research 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 presently has a consensus rating of “Buy” and an average price target of $20.40.

Red Cat Stock Down 6.2%

The company has a market cap of $1.28 billion, a P/E ratio of -12.89 and a beta of 1.32. The company has a fifty day moving average of $9.51 and a 200 day moving average of $11.64.

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

Insider Activity

In related news, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the firm’s stock in a transaction that occurred 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 transaction, the director owned 489,874 shares of the company’s stock, valued at approximately $5,207,360.62. This trade represents a 10.09% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Christopher R. Moe sold 20,000 shares of the business’s stock in a transaction that occurred 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 sale, the director owned 200,502 shares of the company’s stock, valued at $2,107,276.02. This trade represents a 9.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 240,028 shares of company stock valued at $2,692,672 in the last quarter. 12.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. BlackRock Inc. purchased a new position in shares of Red Cat during the 2nd quarter worth $119,610,000. State Street Corp raised its holdings in Red Cat by 136.4% in the 4th quarter. State Street Corp now owns 6,612,153 shares of the company’s stock worth $52,434,000 after purchasing an additional 3,815,310 shares during the period. Vanguard Group Inc. raised its holdings in Red Cat by 9.0% in the 4th quarter. Vanguard Group Inc. now owns 6,000,037 shares of the company’s stock worth $47,580,000 after purchasing an additional 493,660 shares during the period. Geode Capital Management LLC lifted its position in Red Cat by 13.4% during the fourth quarter. Geode Capital Management LLC now owns 2,520,524 shares of the company’s stock valued at $19,991,000 after purchasing an additional 297,967 shares in the last quarter. Finally, Davidson Kempner Capital Management LP purchased a new position in Red Cat during the third quarter valued at $17,286,000. Hedge funds and other 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.