Red Cat (NASDAQ:RCAT) Stock Price Down 7.1% Following Insider Selling

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price dropped 7.1% during mid-day trading on Tuesday following insider selling activity. The stock traded as low as $11.40 and last traded at $11.1160. Approximately 1,527,609 shares changed hands during trading, a decline of 90% from the average daily volume of 15,237,435 shares. The stock had previously closed at $11.97.

Specifically, Director Paul Funk II sold 165,028 shares of the company’s stock in a transaction 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link.

Wall Street Analysts Forecast Growth

RCAT has been the topic of several analyst reports. Clear Str upgraded Red Cat to a “strong-buy” rating in a research note on Wednesday, April 29th. UBS Group initiated coverage on Red Cat in a research report on Wednesday, May 27th. They set a “buy” rating on the stock. Wall Street Zen upgraded shares of Red Cat from a “strong sell” rating to a “sell” rating in a research note on Saturday, June 6th. HC Wainwright initiated coverage on Red Cat in a research note on Wednesday, May 27th. They set a “buy” rating and a $20.00 price target on the stock. Finally, Roth Mkm initiated coverage on shares of Red Cat in a report on Monday, June 1st. They set a “buy” rating and a $25.00 target price for the company. Two equities research 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.com, the company currently has a consensus rating of “Buy” and an average price target of $21.40.

Red Cat Trading Down 7.8%

The company has a market capitalization of $1.35 billion, a PE ratio of -15.76 and a beta of 1.23. The business has a fifty day moving average of $11.73 and a 200 day moving average of $11.87.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($0.22) EPS for the quarter, missing analysts’ consensus estimates 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 company had revenue of $15.47 million for the quarter, compared to analyst estimates of $17.63 million. Red Cat’s revenue was up 849.1% compared to the same quarter last year. Equities analysts forecast that Red Cat Holdings, Inc. will post -0.68 EPS for the current fiscal year.

Hedge Funds Weigh In On Red Cat

A number of institutional investors and hedge funds have recently modified their holdings of the company. Bank of America Corp DE lifted its holdings in Red Cat by 407.0% during the 4th quarter. Bank of America Corp DE now owns 3,397 shares of the company’s stock worth $44,000 after buying an additional 2,727 shares during the last quarter. Royal Bank of Canada boosted its holdings in Red Cat by 76.4% in the first quarter. Royal Bank of Canada now owns 57,800 shares of the company’s stock valued at $340,000 after purchasing an additional 25,031 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Red Cat by 63.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 229,259 shares of the company’s stock valued at $1,348,000 after purchasing an additional 89,095 shares during the last quarter. Goldman Sachs Group Inc. raised its holdings in Red Cat by 28.7% during the first quarter. Goldman Sachs Group Inc. now owns 266,099 shares of the company’s stock worth $1,565,000 after purchasing an additional 59,334 shares in the last quarter. Finally, Cetera Investment Advisers acquired a new position in shares of Red Cat in the 2nd quarter valued at $97,000. Institutional investors and hedge funds 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.