Red Cat (NASDAQ:RCAT) Shares Gap Down – Here’s What Happened

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $9.19, but opened at $8.17. Red Cat shares last traded at $7.45, with a volume of 5,573,463 shares.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on RCAT. Northland Capmk upgraded Red Cat to a “strong-buy” rating in a research report on Monday, March 10th. Northland Securities started coverage on Red Cat in a report on Tuesday, March 11th. They issued an “outperform” rating and a $13.00 price objective on the stock.

Red Cat Stock Down 0.3%

The stock has a market capitalization of $663.72 million, a price-to-earnings ratio of -13.52 and a beta of 1.40. The business’s 50-day moving average is $6.38 and its two-hundred day moving average is $7.74.

Red Cat (NASDAQ:RCAT) last released its earnings results on Wednesday, May 14th. The company reported ($0.27) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.10) by ($0.17). Red Cat had a negative return on equity of 98.48% and a negative net margin of 232.62%. As a group, analysts forecast that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Hedge Funds Weigh In On Red Cat

A number of institutional investors and hedge funds have recently added to or reduced their stakes in RCAT. Twin Tree Management LP purchased a new stake in shares of Red Cat in the fourth quarter valued at about $28,000. Bank of America Corp DE lifted its holdings in Red Cat by 407.0% in the fourth quarter. Bank of America Corp DE now owns 3,397 shares of the company’s stock valued at $44,000 after acquiring an additional 2,727 shares during the last quarter. Mark Sheptoff Financial Planning LLC acquired a new stake in Red Cat during the fourth quarter worth $48,000. SBI Securities Co. Ltd. raised its position in Red Cat by 104.4% in the first quarter. SBI Securities Co. Ltd. now owns 9,467 shares of the company’s stock valued at $56,000 after purchasing an additional 4,835 shares during the period. Finally, Summit Trail Advisors LLC acquired a new position in shares of Red Cat in the first quarter worth $59,000. Institutional investors and hedge funds own 37.97% of the company’s stock.

Red Cat Company Profile

Red Cat Holdings, Inc engages in the provision of various products, services, and solutions to the drone industry. The company operates through two segments: Enterprise and Consumer. It built infrastructure to manages drone fleets and fly, and provide services remotely, navigate confined industrial interior spaces and dangerous military environment.