Red Cat (NASDAQ:RCAT) Shares Down 7.2% – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares fell 7.2% during trading on Monday . The company traded as low as $8.78 and last traded at $8.93. Approximately 7,150,653 shares were traded during trading, a decline of 48% from the average session volume of 13,715,996 shares. The stock had previously closed at $9.62.

Analysts Set New Price Targets

RCAT has been the subject of several recent research reports. UBS Group began coverage on shares of Red Cat in a research report on Wednesday, May 27th. They set a “buy” rating for the company. Wall Street Zen lowered Red Cat from a “sell” rating to a “strong sell” rating in a research report on Saturday, July 18th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Red Cat in a research note on Friday, July 17th. Clear Str upgraded Red Cat to a “strong-buy” rating in a report on Wednesday, April 29th. Finally, Roth Capital started coverage on Red Cat in a report on Monday, June 1st. They set a “buy” rating and a $25.00 target price on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Buy” and an average price target of $20.40.

Red Cat Trading Down 7.2%

The firm’s fifty day moving average price is $9.35 and its 200-day moving average price is $11.47. The company has a market cap of $1.10 billion, a price-to-earnings ratio of -11.02 and a beta of 1.31.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings data 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 for 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%. As a group, research analysts anticipate that Red Cat Holdings, Inc. will post -0.78 EPS for the current year.

Insiders Place Their Bets

In other news, Director Christopher R. Moe sold 20,000 shares of the firm’s stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $10.51, for a total transaction of $210,200.00. Following the sale, the director owned 200,502 shares of the company’s stock, valued at $2,107,276.02. This trade represents a 9.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Paul Funk II sold 165,028 shares of Red Cat stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $11.50, for a total value of $1,897,822.00. 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 corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of RCAT. Arizona State Retirement System lifted its holdings in shares of Red Cat by 3.0% in the fourth quarter. Arizona State Retirement System now owns 29,311 shares of the company’s stock valued at $232,000 after purchasing an additional 855 shares in the last quarter. CoreCap Advisors LLC grew its holdings in shares of Red Cat by 13.8% during the second quarter. CoreCap Advisors LLC now owns 9,039 shares of the company’s stock worth $96,000 after buying an additional 1,095 shares in 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 buying an additional 1,147 shares during the last quarter. Advisory Services Network LLC raised its position in Red Cat by 5.3% in the 3rd quarter. Advisory Services Network LLC now owns 30,200 shares of the company’s stock valued at $313,000 after buying an additional 1,507 shares during the last quarter. Finally, Western Wealth Management LLC raised its position in Red Cat by 4.5% in the 1st quarter. Western Wealth Management LLC now owns 36,722 shares of the company’s stock valued at $481,000 after buying 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.