Red Cat (NASDAQ:RCAT) Trading Down 2% – Here’s What Happened

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price fell 2% during trading on Monday . The company traded as low as $7.64 and last traded at $7.80. Approximately 5,330,021 shares changed hands during mid-day trading, a decline of 59% from the average daily volume of 13,060,030 shares. The stock had previously closed at $7.96.

Wall Street Analyst Weigh In

Several brokerages have issued reports on RCAT. HC Wainwright reiterated a “buy” rating and issued a $20.00 price target on shares of Red Cat in a report on Friday, August 7th. UBS Group started coverage on Red Cat in a report on Wednesday, May 27th. They set a “buy” rating for the company. Needham & Company LLC cut their target price on Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a report on Friday, August 7th. Evercore assumed coverage on Red Cat in a report on Monday, August 31st. They issued an “outperform” rating and a $15.00 target price on the stock. Finally, Piper Sandler started coverage on shares of Red Cat in a research note on Wednesday, September 2nd. They set a “neutral” rating and a $9.00 price target for the company. Two analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $18.00.

Red Cat Trading Down 2.0%

The stock has a market capitalization of $957.37 million, a P/E ratio of -9.63 and a beta of 1.35. The business has a fifty day simple moving average of $8.75 and a 200 day simple moving average of $11.07.

Red Cat (NASDAQ:RCAT) last posted its earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.21) by ($0.05). The company had revenue of $20.20 million during the quarter, compared to the consensus estimate of $22.65 million. Red Cat had a negative net margin of 136.26% and a negative return on equity of 32.25%. As a group, research analysts forecast that Red Cat Holdings, Inc. will post -0.77 earnings per share for the current year.

Insider Activity

In other news, Director Nicholas Liuzza, Jr. sold 55,000 shares of the stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $10.63, for a total value of $584,650.00. Following the completion of the sale, the director owned 489,874 shares in the company, valued at $5,207,360.62. This represents a 10.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Christopher Moe sold 20,000 shares of the stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total value of $210,200.00. Following the sale, the director directly owned 200,502 shares of the company’s stock, valued at $2,107,276.02. The trade was a 9.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 12.50% of the company’s stock.

Institutional Investors Weigh In On Red Cat

Hedge funds have recently made changes to their positions in the business. The Manufacturers Life Insurance Company boosted its holdings in shares of Red Cat by 4.2% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 49,008 shares of the company’s stock worth $522,000 after buying an additional 1,961 shares during the last quarter. WINTON GROUP Ltd increased its holdings in Red Cat by 289.5% during the second quarter. WINTON GROUP Ltd now owns 107,890 shares of the company’s stock worth $1,149,000 after buying an additional 80,190 shares during the last quarter. Integrated Wealth Concepts LLC bought a new stake in Red Cat in the second quarter worth about $42,000. Arizona State Retirement System raised its position in Red Cat by 23.4% in the second quarter. Arizona State Retirement System now owns 36,426 shares of the company’s stock worth $388,000 after acquiring an additional 6,917 shares during the period. Finally, Corient Private Wealth LP boosted its stake in Red Cat by 135.5% in the second quarter. Corient Private Wealth LP now owns 27,310 shares of the company’s stock valued at $291,000 after acquiring an additional 15,712 shares during the last quarter. 37.97% of the stock is currently owned by institutional investors.

Red Cat Company Profile

Red Cat Holdings, Inc is a drone technology company that develops and supplies small unmanned aircraft systems for military, government, public safety and commercial applications. Its solutions are designed to support intelligence, surveillance and reconnaissance, situational awareness, and other missions requiring portable and rapidly deployable aerial systems.

Through its Teal Drones business, Red Cat offers the Teal 2 and related Black Widow systems, compact drones designed for defense and public-safety users.