Red Cat (NASDAQ:RCAT) Stock Price Down 8.5% – Here’s What Happened

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price dropped 8.5% during trading on Friday . The stock traded as low as $8.45 and last traded at $8.49. 7,115,263 shares traded hands during mid-day trading, a decline of 47% from the average daily volume of 13,513,179 shares. The stock had previously closed at $9.28.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on the stock. Wall Street Zen downgraded shares of Red Cat from a “sell” rating to a “strong sell” rating in a research report on Saturday, July 18th. Roth Capital assumed coverage on Red Cat in a report on Monday, June 1st. They issued a “buy” rating and a $25.00 price objective for the company. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a report on Friday, July 17th. LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a research note on Wednesday, May 6th. Finally, HC Wainwright reissued a “buy” rating and set a $20.00 target price on shares of Red Cat in a research note on Friday, August 7th. Two 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’s stock. According to MarketBeat, Red Cat currently has an average rating of “Buy” and an average price target of $20.40.

Red Cat Stock Performance

The company has a 50-day moving average of $9.16 and a 200-day moving average of $11.36. The stock has a market capitalization of $1.04 billion, a price-to-earnings ratio of -10.48 and a beta of 1.31.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings data on Thursday, August 6th. The company reported ($0.26) EPS for the quarter, missing analysts’ consensus estimates 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 company had revenue of $20.20 million for the quarter, compared to analyst estimates of $22.65 million. As a group, analysts expect that Red Cat Holdings, Inc. will post -0.78 earnings per share for the current year.

Insider Transactions at Red Cat

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 shares were sold at an average price of $11.50, for a total transaction of $1,897,822.00. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Christopher R. Moe sold 20,000 shares of the stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $10.51, for a total value of $210,200.00. Following the completion of the transaction, the director directly owned 200,502 shares in the company, valued at $2,107,276.02. This trade represents a 9.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 240,028 shares of company stock worth $2,692,672 over the last quarter. 12.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Red Cat

Several institutional investors have recently bought and sold shares of RCAT. Corient Private Wealth LP boosted its position in Red Cat by 135.5% during the 2nd quarter. Corient Private Wealth LP now owns 27,310 shares of the company’s stock worth $291,000 after purchasing an additional 15,712 shares during the period. Kingsbury Capital Investment Advisors LLC raised its position in shares of Red Cat by 22.7% in the 2nd quarter. Kingsbury Capital Investment Advisors LLC now owns 13,556 shares of the company’s stock valued at $144,000 after purchasing an additional 2,512 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in Red Cat during the 2nd quarter valued at $200,000. California State Teachers Retirement System grew its stake in Red Cat by 1,038.2% in the second quarter. California State Teachers Retirement System now owns 1,585,167 shares of the company’s stock worth $16,882,000 after purchasing an additional 1,445,899 shares in the last quarter. Finally, Concurrent Investment Advisors LLC grew its position in shares of Red Cat by 114.9% in the 2nd quarter. Concurrent Investment Advisors LLC now owns 66,384 shares of the company’s stock worth $707,000 after acquiring an additional 35,499 shares in the last quarter. 37.97% of the stock is currently owned by hedge funds and other institutional investors.

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.