Red Cat (NASDAQ:RCAT) Shares Down 7.7% – Should You Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares were down 7.7% during trading on Tuesday . The stock traded as low as $10.81 and last traded at $11.50. Approximately 12,545,976 shares traded hands during mid-day trading, a decline of 19% from the average daily volume of 15,532,479 shares. The stock had previously closed at $12.46.

Analyst Upgrades and Downgrades

Several research analysts recently commented on RCAT shares. Wall Street Zen upgraded shares of Red Cat from a “strong sell” rating to a “sell” rating in a report on Saturday, June 6th. Needham & Company LLC lifted their target price on shares of Red Cat from $16.00 to $20.00 and gave the stock a “buy” rating in a report on Thursday, March 19th. UBS Group started coverage on shares of Red Cat in a report on Wednesday, May 27th. They issued a “buy” rating 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, Roth Mkm started coverage on shares of Red Cat in a report on Monday, June 1st. They issued a “buy” rating and a $25.00 target price on the stock. Two analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Red Cat presently has a consensus rating of “Buy” and a consensus price target of $21.40.

Red Cat Trading Up 10.2%

The firm’s fifty day moving average price is $11.79 and its 200-day moving average price is $11.77. The company has a market cap of $1.47 billion, a P/E ratio of -17.16 and a beta of 1.23.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings data on Thursday, May 7th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing the consensus estimate 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 the consensus estimate of $17.63 million. The business’s revenue for the quarter was up 849.1% on a year-over-year basis. As a group, research analysts forecast that Red Cat Holdings, Inc. will post -0.68 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. IFP Advisors Inc increased its stake in Red Cat by 181.1% in the third quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock valued at $28,000 after acquiring an additional 1,720 shares during the period. Fifth Third Bancorp bought a new stake in Red Cat in the first quarter valued at about $33,000. Montag A & Associates Inc. increased its stake in Red Cat by 552.0% in the third quarter. Montag A & Associates Inc. now owns 3,260 shares of the company’s stock valued at $34,000 after acquiring an additional 2,760 shares during the period. California State Teachers Retirement System bought a new stake in Red Cat in the second quarter valued at about $34,000. Finally, NFSG Corp increased its stake in Red Cat by 200.0% in the first quarter. NFSG Corp now owns 3,000 shares of the company’s stock valued at $39,000 after acquiring an additional 2,000 shares during the period. Institutional investors 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.