Red Cat (NASDAQ:RCAT) Shares Down 3% – Time to Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price traded down 3% on Wednesday . The company traded as low as $9.63 and last traded at $9.89. 5,750,719 shares changed hands during trading, a decline of 58% from the average daily volume of 13,831,572 shares. The stock had previously closed at $10.20.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on RCAT shares. Clear Str raised Red Cat to a “strong-buy” rating in a research note on Wednesday, April 29th. Roth Capital began coverage on shares of Red Cat in a research note on Monday, June 1st. They set a “buy” rating and a $25.00 price objective for the company. Needham & Company LLC cut their price objective on Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a research report on Friday, August 7th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Red Cat in a research report on Friday, July 17th. Finally, UBS Group assumed coverage on Red Cat in a report on Wednesday, May 27th. They set a “buy” rating on the stock. Two 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’s stock. According to MarketBeat.com, the stock has a consensus rating of “Buy” and a consensus price target of $20.40.

Red Cat Stock Performance

The firm has a 50 day moving average price of $9.38 and a two-hundred day moving average price of $11.50. The firm has a market capitalization of $1.18 billion, a P/E ratio of -11.88 and a beta of 1.31.

Red Cat (NASDAQ:RCAT) last issued its earnings results on Thursday, August 6th. The company reported ($0.26) EPS for the quarter, missing the consensus estimate of ($0.21) by ($0.05). The business had revenue of $20.20 million during the quarter, compared to analyst estimates of $22.65 million. Red Cat had a negative return on equity of 32.25% and a negative net margin of 136.26%. Equities research analysts forecast that Red Cat Holdings, Inc. will post -0.78 earnings per share for the current fiscal year.

Insider Buying and Selling at Red Cat

In other news, Director Paul Funk II sold 165,028 shares of the business’s stock in a transaction dated 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 accessible through this hyperlink. Also, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the company’s stock in a transaction that occurred on 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 transaction, the director directly owned 489,874 shares of the company’s stock, valued at approximately $5,207,360.62. This trade represents a 10.09% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 240,028 shares of company stock worth $2,692,672 over the last ninety days. 12.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Red Cat

Several institutional investors and hedge funds have recently bought and sold shares of RCAT. Arizona State Retirement System grew its stake in Red Cat by 3.0% during the fourth quarter. Arizona State Retirement System now owns 29,311 shares of the company’s stock worth $232,000 after buying an additional 855 shares during the last quarter. CoreCap Advisors LLC grew its position in Red Cat by 13.8% during the 2nd quarter. CoreCap Advisors LLC now owns 9,039 shares of the company’s stock worth $96,000 after acquiring an additional 1,095 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. raised its position in Red Cat by 0.7% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 167,084 shares of the company’s stock valued at $1,325,000 after purchasing an additional 1,147 shares during the last quarter. Advisory Services Network LLC boosted its stake in Red Cat by 5.3% in the third quarter. Advisory Services Network LLC now owns 30,200 shares of the company’s stock worth $313,000 after purchasing an additional 1,507 shares in the last quarter. Finally, Western Wealth Management LLC grew its holdings in shares of Red Cat by 4.5% during the first quarter. Western Wealth Management LLC now owns 36,722 shares of the company’s stock worth $481,000 after purchasing an additional 1,570 shares during the last quarter. Institutional investors own 37.97% of the company’s stock.

Red Cat Company Profile

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.