Red Cat (NASDAQ:RCAT) Stock Price Down 3% – Here’s What Happened

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares were down 3% during mid-day trading on Wednesday . The stock traded as low as $9.63 and last traded at $9.89. Approximately 5,750,719 shares were traded during trading, a decline of 58% from the average session volume of 13,831,572 shares. The stock had previously closed at $10.20.

Wall Street Analyst Weigh In

RCAT has been the topic of a number of recent analyst reports. Needham & Company LLC cut 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 reiterated a “buy” rating and set a $20.00 price target on shares of Red Cat in a report on Friday, August 7th. Clear Str raised shares of Red Cat to a “strong-buy” rating in a research report on Wednesday, April 29th. UBS Group assumed coverage on shares of Red Cat in a research note on Wednesday, May 27th. They issued a “buy” rating for the company. Finally, LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a report on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat, Red Cat presently has a consensus rating of “Buy” and a consensus target price of $20.40.

Red Cat Price Performance

The firm has a market capitalization of $1.21 billion, a P/E ratio of -12.21 and a beta of 1.32. The business has a 50 day moving average price of $9.45 and a 200 day moving average price of $11.56.

Red Cat (NASDAQ:RCAT) last announced its earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share for the quarter, missing the consensus estimate of ($0.21) by ($0.05). The business had revenue of $20.20 million for 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, equities analysts expect that Red Cat Holdings, Inc. will post -0.78 EPS for the current year.

Insider Activity

In other news, Director Christopher R. Moe sold 20,000 shares of the stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $10.51, for a total value of $210,200.00. Following the completion of the sale, the director directly owned 200,502 shares of the company’s stock, valued at approximately $2,107,276.02. This represents a 9.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the firm’s stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $10.63, for a total transaction of $584,650.00. Following the completion of the sale, the director owned 489,874 shares in the company, valued at approximately $5,207,360.62. The trade was a 10.09% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 240,028 shares of company stock valued at $2,692,672. 12.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Empowered Funds LLC acquired a new position in shares of Red Cat during the second quarter valued at about $3,816,000. Equitable Holdings Inc. bought a new stake in shares of Red Cat in the second quarter valued at about $437,000. Capstone Investment Advisors LLC acquired a new stake in Red Cat during the second quarter worth about $187,000. Corient Private Wealth LP bought a new position in Red Cat during the second quarter valued at about $296,000. Finally, Bank of America Corp DE bought a new position in Red Cat during the second quarter valued at about $9,211,000. Institutional investors own 37.97% of the company’s stock.

Red Cat Company Profile

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.