Red Cat (NASDAQ:RCAT) Stock Price Down 4.4% – What’s Next?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price traded down 4.4% during trading on Tuesday . The stock traded as low as $7.06 and last traded at $7.45. Approximately 6,284,777 shares traded hands during trading, a decline of 56% from the average session volume of 14,219,412 shares. The stock had previously closed at $7.79.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the stock. Wall Street Zen downgraded shares of Red Cat from a “sell” rating to a “strong sell” rating in a research note on Saturday, July 18th. LADENBURG THALM/SH SH raised Red Cat to a “strong-buy” rating in a research report on Wednesday, May 6th. HC Wainwright initiated coverage on Red Cat in a research note on Wednesday, May 27th. They issued a “buy” rating and a $20.00 price target on the stock. Roth Capital initiated coverage on Red Cat in a research report on Monday, June 1st. They set a “buy” rating and a $25.00 price objective for the company. Finally, Clear Str upgraded Red Cat to a “strong-buy” rating in a research note on Wednesday, April 29th. 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, the stock presently has an average rating of “Buy” and a consensus target price of $21.40.

Red Cat Trading Down 4.4%

The stock’s 50 day moving average is $10.32 and its 200-day moving average is $12.11. The company has a market cap of $914.43 million, a P/E ratio of -10.64 and a beta of 1.29.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings data 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 firm had revenue of $15.47 million for the quarter, compared to the consensus estimate of $17.63 million. Red Cat had a negative net margin of 138.36% and a negative return on equity of 35.86%. The business’s quarterly revenue was up 849.1% on a year-over-year basis. As a group, sell-side analysts forecast that Red Cat Holdings, Inc. will post -0.68 EPS for the current year.

Insider Activity at Red Cat

In related news, Director Paul Funk II sold 165,028 shares of the firm’s 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 sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 12.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Red Cat

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RCAT. Tudor Investment Corp ET AL boosted its position in shares of Red Cat by 214.0% during 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 buying an additional 870,612 shares during the last quarter. EVR Research LP purchased a new position in Red Cat in the 4th quarter worth about $1,705,000. Caitong International Asset Management Co. Ltd raised its position in Red Cat by 1,825.1% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 54,152 shares of the company’s stock worth $429,000 after buying an additional 51,339 shares during the last quarter. Vanguard Group Inc. lifted its stake in Red Cat by 9.0% during the 4th quarter. Vanguard Group Inc. now owns 6,000,037 shares of the company’s stock valued at $47,580,000 after acquiring an additional 493,660 shares during the period. Finally, UBS Group AG boosted its holdings in shares of Red Cat by 37.7% during the 4th quarter. UBS Group AG now owns 580,099 shares of the company’s stock valued at $4,600,000 after acquiring an additional 158,864 shares during the last quarter. 37.97% of the stock is owned by 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.