Red Cat (NASDAQ:RCAT) Shares Down 5% – Time to Sell?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) dropped 5% during mid-day trading on Wednesday . The stock traded as low as $6.57 and last traded at $6.59. Approximately 10,251,074 shares changed hands during trading, a decline of 22% from the average daily volume of 13,081,903 shares. The stock had previously closed at $6.94.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on the company. Northland Securities set a $13.00 target price on Red Cat in a research note on Thursday, September 17th. Needham & Company LLC decreased their price objective on Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a report on Friday, August 7th. Wall Street Zen cut Red Cat from a “sell” rating to a “strong sell” rating in a research report on Saturday, July 18th. Piper Sandler assumed coverage on Red Cat in a report on Wednesday, September 2nd. They set a “neutral” rating and a $9.00 target price for the company. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a research report on Friday, July 17th. Two research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Red Cat presently has a consensus rating of “Moderate Buy” and an average target price of $16.71.

Red Cat Stock Down 5.3%

The stock has a market capitalization of $806.40 million, a price-to-earnings ratio of -8.11 and a beta of 1.35. The business’s 50 day simple moving average is $8.49 and its 200-day simple moving average is $10.77.

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). Red Cat had a negative net margin of 136.26% and a negative return on equity of 32.25%. The firm had revenue of $20.20 million during the quarter, compared to analyst estimates of $22.65 million. On average, analysts expect that Red Cat Holdings, Inc. will post -0.79 earnings per share for the current year.

Insider Buying and Selling at Red Cat

In other news, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the business’s stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $10.63, for a total transaction of $584,650.00. Following the completion of the transaction, the director owned 489,874 shares of the company’s stock, valued at approximately $5,207,360.62. The trade was a 10.09% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Jeffrey M. Thompson sold 150,000 shares of the business’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $7.74, for a total value of $1,161,000.00. Following the transaction, the chief executive officer directly owned 11,712,202 shares of the company’s stock, valued at $90,652,443.48. This trade represents a 1.26% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 225,000 shares of company stock worth $1,955,850 over the last three months. Corporate insiders own 12.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Sei Investments Co. bought a new stake in shares of Red Cat during the 1st quarter valued at approximately $2,328,000. BlackRock Inc. acquired a new stake in Red Cat in the second quarter valued at approximately $119,610,000. Janus Henderson Group PLC boosted its position in Red Cat by 733.7% in the first quarter. Janus Henderson Group PLC now owns 392,808 shares of the company’s stock valued at $5,141,000 after buying an additional 345,693 shares in the last quarter. EVR Research LP bought a new stake in shares of Red Cat during the fourth quarter worth $1,705,000. Finally, Deutsche Bank AG acquired a new position in shares of Red Cat during the second quarter worth $1,270,000. Institutional investors and hedge funds own 37.97% of the company’s stock.

Red Cat Company Profile

Red Cat Holdings, Inc is a drone technology company that develops and supplies small unmanned aircraft systems for military, government, public safety and commercial applications. Its solutions are designed to support intelligence, surveillance and reconnaissance, situational awareness, and other missions requiring portable and rapidly deployable aerial systems.

Through its Teal Drones business, Red Cat offers the Teal 2 and related Black Widow systems, compact drones designed for defense and public-safety users.