Red Cat (NASDAQ:RCAT) Trading Down 1.7% – What’s Next?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price dropped 1.7% during mid-day trading on Monday . The stock traded as low as $12.26 and last traded at $12.46. Approximately 10,015,349 shares were traded during mid-day trading, a decline of 36% from the average daily volume of 15,559,760 shares. The stock had previously closed at $12.68.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the company. LADENBURG THALM/SH SH raised Red Cat to a “strong-buy” rating in a research note on Wednesday, May 6th. Wall Street Zen upgraded Red Cat from a “strong sell” rating to a “sell” rating in a research report on Saturday. UBS Group initiated coverage on Red Cat in a research report on Wednesday, May 27th. They issued a “buy” rating for the company. HC Wainwright started coverage on Red Cat in a research note on Wednesday, May 27th. They issued a “buy” rating and a $20.00 target price for the company. Finally, Clear Str raised shares of 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 assigned a Buy rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Red Cat has an average rating of “Buy” and an average target price of $21.40.

Red Cat Stock Down 1.7%

The stock has a market cap of $1.53 billion, a P/E ratio of -17.80 and a beta of 1.23. The company has a 50-day simple moving average of $11.86 and a two-hundred day simple moving average of $11.66.

Red Cat (NASDAQ:RCAT) last issued its earnings results on Thursday, May 7th. The company reported ($0.22) EPS for the quarter, missing the consensus estimate of ($0.12) by ($0.10). The firm had revenue of $15.47 million during the quarter, compared to analysts’ expectations of $17.63 million. Red Cat had a negative return on equity of 35.86% and a negative net margin of 138.36%.The firm’s revenue for the quarter was up 849.1% compared to the same quarter last year. As a group, sell-side analysts forecast that Red Cat Holdings, Inc. will post -0.68 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of RCAT. IFP Advisors Inc lifted its holdings in Red Cat by 181.1% in the 3rd quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock worth $28,000 after buying an additional 1,720 shares during the period. Fifth Third Bancorp purchased a new position in shares of Red Cat during the first quarter valued at approximately $33,000. Montag A & Associates Inc. raised its holdings in shares of 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 acquiring an additional 2,760 shares in the last quarter. California State Teachers Retirement System purchased a new stake in Red Cat in the second quarter worth $34,000. Finally, NFSG Corp boosted its holdings 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 in the last quarter. Hedge funds and other 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.