Red Cat (NASDAQ:RCAT) Shares Down 9% – Here’s What Happened

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price dropped 9% during mid-day trading on Wednesday . The company traded as low as $13.58 and last traded at $13.61. Approximately 8,284,915 shares traded hands during mid-day trading, a decline of 46% from the average daily volume of 15,434,657 shares. The stock had previously closed at $14.95.

Wall Street Analysts Forecast Growth

RCAT has been the topic of a number of recent research reports. Needham & Company LLC lifted their target price on Red Cat from $16.00 to $20.00 and gave the company a “buy” rating in a research report on Thursday, March 19th. Clear Str raised Red Cat to a “strong-buy” rating in a research report on Wednesday, April 29th. HC Wainwright started coverage on shares of Red Cat in a report on Wednesday, May 27th. They set a “buy” rating and a $20.00 target price on the stock. LADENBURG THALM/SH SH upgraded shares of Red Cat to a “strong-buy” rating in a report on Wednesday, May 6th. Finally, UBS Group started coverage on shares of Red Cat in a report on Wednesday, May 27th. They set a “buy” rating on the stock. Two investment analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus price target of $21.40.

Red Cat Price Performance

The business has a 50-day simple moving average of $11.94 and a two-hundred day simple moving average of $11.48. The stock has a market cap of $1.67 billion, a price-to-earnings ratio of -19.41 and a beta of 1.23.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings results on Thursday, May 7th. The company reported ($0.22) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.12) by ($0.10). The business had revenue of $15.47 million for the quarter, compared to analyst estimates of $17.63 million. Red Cat had a negative return on equity of 35.86% and a negative net margin of 138.36%.Red Cat’s revenue was up 849.1% compared to the same quarter last year. As a group, equities analysts anticipate that Red Cat Holdings, Inc. will post -0.69 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Red Cat

Institutional investors and hedge funds have recently modified their holdings of the stock. Brevan Howard Capital Management LP acquired a new position in shares of Red Cat in the third quarter valued at $19,739,000. Tudor Investment Corp ET AL increased its holdings in shares of Red Cat by 214.0% in the third quarter. Tudor Investment Corp ET AL now owns 1,277,523 shares of the company’s stock valued at $13,222,000 after purchasing an additional 870,612 shares during the last quarter. Baader Bank Aktiengesellschaft acquired a new position in shares of Red Cat in the third quarter valued at approximately $491,000. Vanguard Group Inc. grew its position in shares of Red Cat by 9.0% in the fourth quarter. Vanguard Group Inc. now owns 6,000,037 shares of the company’s stock valued at $47,580,000 after purchasing an additional 493,660 shares during the last quarter. Finally, UBS Group AG grew its position in shares of Red Cat by 37.7% in the fourth quarter. UBS Group AG now owns 580,099 shares of the company’s stock valued at $4,600,000 after purchasing an additional 158,864 shares during the last quarter. 37.97% of the stock is currently owned by institutional investors and hedge funds.

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.