Red Cat (NASDAQ:RCAT) Trading Down 7.8% – Time to Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares dropped 7.8% during mid-day trading on Wednesday . The company traded as low as $13.50 and last traded at $13.79. Approximately 16,322,023 shares were traded during mid-day trading, an increase of 5% from the average daily volume of 15,521,530 shares. The stock had previously closed at $14.95.

Wall Street Analyst Weigh In

RCAT has been the subject of a number of research analyst reports. Clear Str upgraded Red Cat to a “strong-buy” rating in a report on Wednesday, April 29th. Weiss Ratings restated a “sell (d-)” rating on shares of Red Cat in a report on Tuesday, April 21st. HC Wainwright initiated coverage on shares of Red Cat in a research note on Wednesday, May 27th. They issued a “buy” rating and a $20.00 price target on the stock. UBS Group initiated coverage on shares of Red Cat in a research note on Wednesday, May 27th. They issued a “buy” rating on the stock. Finally, Wall Street Zen downgraded shares of Red Cat from a “hold” rating to a “sell” rating in a research note on Saturday, May 2nd. Two research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and one has issued a Sell rating to the company. According to MarketBeat, Red Cat presently has an average rating of “Buy” and a consensus price target of $21.40.

Red Cat Stock Up 6.9%

The firm has a market capitalization of $1.81 billion, a price-to-earnings ratio of -21.06 and a beta of 1.23. The stock’s 50 day moving average price is $11.92 and its two-hundred day moving average price is $11.62.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings results 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). 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 during the quarter, compared to analyst estimates of $17.63 million. The firm’s revenue was up 849.1% compared to the same quarter last year. On average, equities analysts expect that Red Cat Holdings, Inc. will post -0.68 EPS for the current fiscal year.

Hedge Funds Weigh In On Red Cat

Institutional investors have recently bought and sold shares of the stock. Fifth Third Bancorp bought a new position in Red Cat during the first quarter valued at about $33,000. IFP Advisors Inc raised its holdings in Red Cat by 181.1% during the third quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock valued at $28,000 after buying an additional 1,720 shares in the last quarter. NFSG Corp raised its holdings in Red Cat by 200.0% during the first quarter. NFSG Corp now owns 3,000 shares of the company’s stock valued at $39,000 after buying an additional 2,000 shares in the last quarter. PNC Financial Services Group Inc. raised its holdings in Red Cat by 294.6% during the first quarter. PNC Financial Services Group Inc. now owns 3,042 shares of the company’s stock valued at $40,000 after buying an additional 2,271 shares in the last quarter. Finally, Montag A & Associates Inc. raised its holdings in Red Cat by 552.0% during the third quarter. Montag A & Associates Inc. now owns 3,260 shares of the company’s stock valued at $34,000 after buying an additional 2,760 shares in the last quarter. 37.97% of the stock is currently 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.