Red Cat (NASDAQ:RCAT) Shares Down 4% – What’s Next?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) fell 4% during mid-day trading on Tuesday . The company traded as low as $8.20 and last traded at $8.25. 4,776,559 shares changed hands during mid-day trading, a decline of 64% from the average daily volume of 13,417,096 shares. The stock had previously closed at $8.59.

Analyst Ratings Changes

RCAT has been the topic of a number of research reports. Roth Capital started coverage on Red Cat in a report on Monday, June 1st. They issued a “buy” rating and a $25.00 price objective on the stock. Needham & Company LLC cut 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. HC Wainwright reaffirmed a “buy” rating and issued a $20.00 price objective on shares of Red Cat in a report on Friday, August 7th. Finally, Wall Street Zen lowered shares of Red Cat from a “sell” rating to a “strong sell” rating in a research note on Saturday, July 18th. Two investment analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Red Cat presently has an average rating of “Buy” and an average target price of $19.50.

Red Cat Stock Performance

The firm’s 50 day moving average is $9.06 and its 200-day moving average is $11.30. The stock has a market capitalization of $1.01 billion, a price-to-earnings ratio of -10.19 and a beta of 1.32.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings data 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). Red Cat had a negative return on equity of 32.25% and a negative net margin of 136.26%.The firm had revenue of $20.20 million during the quarter, compared to analyst estimates of $22.65 million. As a group, sell-side analysts forecast that Red Cat Holdings, Inc. will post -0.78 earnings per share for the current year.

Insider Buying and Selling

In other Red Cat news, Director Paul Funk II sold 165,028 shares of the stock in a transaction that occurred 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 sale was disclosed in a filing with the SEC, which is accessible through this link. Also, 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 completion of the sale, the director directly owned 489,874 shares in the company, valued at approximately $5,207,360.62. The trade was a 10.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 240,028 shares of company stock valued at $2,692,672. 12.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On Red Cat

Several institutional investors and hedge funds have recently added to or reduced their stakes in RCAT. BlackRock Inc. purchased a new position in Red Cat during the second quarter valued at $119,610,000. State Street Corp lifted its stake in 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 buying an additional 3,815,310 shares in the last quarter. Van ECK Associates Corp acquired a new stake in Red Cat in the 2nd quarter worth about $27,193,000. Vanguard Group Inc. increased its stake in Red Cat by 43.9% during the 3rd quarter. Vanguard Group Inc. now owns 5,506,377 shares of the company’s stock worth $56,991,000 after buying an additional 1,680,929 shares in the last quarter. Finally, Davidson Kempner Capital Management LP purchased a new stake in Red Cat during the 3rd quarter worth approximately $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.