Red Cat (NASDAQ:RCAT) Hits New 12-Month Low – Here’s What Happened

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price reached a new 52-week low during mid-day trading on Thursday. The company traded as low as $4.41 and last traded at $4.5510, with a volume of 807,400 shares changing hands. The stock had previously closed at $4.58.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on RCAT. Northland Securities set a $13.00 price target on Red Cat in a research report on Thursday, September 17th. HC Wainwright reaffirmed a “buy” rating and set a $20.00 price target on shares of Red Cat in a research report on Friday, August 7th. Evercore began coverage on Red Cat in a research report on Monday, August 31st. They set an “outperform” rating and a $15.00 price target on the stock. Piper Sandler dropped their price objective on Red Cat from $9.00 to $6.00 and set a “neutral” rating on the stock in a research note on Friday. Finally, Wall Street Zen downgraded Red Cat from a “sell” rating to a “strong sell” rating in a report on Saturday, July 18th. Two analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $16.29.

Red Cat Trading Up 1.4%

The firm’s 50 day moving average price is $7.17 and its two-hundred day moving average price is $9.35. The company has a market capitalization of $543.74 million, a price-to-earnings ratio of -5.47 and a beta of 1.51.

Red Cat (NASDAQ:RCAT) last issued its earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.21) by ($0.05). Red Cat had a negative net margin of 136.26% and a negative return on equity of 32.25%. The firm had revenue of $20.20 million during the quarter, compared to analyst estimates of $22.65 million. As a group, equities research analysts predict that Red Cat Holdings, Inc. will post -0.79 EPS for the current year.

Insider Activity at Red Cat

In related news, CEO Jeffrey Thompson sold 150,000 shares of the stock in a transaction on Thursday, October 15th. The stock was sold at an average price of $4.51, for a total value of $676,500.00. Following the sale, the chief executive officer owned 11,562,202 shares in the company, valued at approximately $52,145,531.02. This represents a 1.28% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Nicholas Liuzza, Jr. sold 55,000 shares of the firm’s stock in a transaction 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 sale, the director directly owned 489,874 shares of the company’s stock, valued at $5,207,360.62. This represents a 10.09% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 375,000 shares of company stock worth $2,632,350. Company insiders own 12.50% of the company’s stock.

Institutional Trading of Red Cat

Several institutional investors have recently added to or reduced their stakes in the company. Fifth Third Bancorp acquired a new position in Red Cat in the first quarter valued at about $33,000. Allworth Financial LP bought a new stake in Red Cat during the second quarter worth about $28,000. NFSG Corp lifted its position in Red Cat by 200.0% during the first quarter. NFSG Corp now owns 3,000 shares of the company’s stock worth $39,000 after purchasing an additional 2,000 shares during the period. PNC Financial Services Group Inc. grew its stake in Red Cat by 294.6% during the first quarter. PNC Financial Services Group Inc. now owns 3,042 shares of the company’s stock worth $40,000 after buying an additional 2,271 shares in the last quarter. Finally, KBC Group NV acquired a new stake in Red Cat during the first quarter worth about $45,000. 37.97% of the stock is currently owned by institutional investors.

About Red Cat

Red Cat Holdings, Inc is a drone technology company that develops and provides unmanned aircraft systems, software, and related services for defense, public safety, and commercial applications. Its solutions are designed to support intelligence, surveillance, reconnaissance, and situational-awareness missions in demanding operating environments.

Through its Teal Drones subsidiary, Red Cat offers small unmanned aircraft systems such as the Teal 2, a compact drone designed for nighttime operations and short-range reconnaissance.