Red Cat (NASDAQ:RCAT) Stock Price Down 2.4% – Time to Sell?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) dropped 2.4% during mid-day trading on Monday. The company traded as low as $6.46 and last traded at $6.50. Approximately 5,987,571 shares changed hands during trading, a decline of 54% from the average session volume of 12,984,189 shares. The stock had previously closed at $6.66.

Analysts Set New Price Targets

RCAT has been the topic of several research analyst reports. Weiss Ratings restated a “sell (d-)” rating on shares of Red Cat in a research note on Friday, July 17th. Northland Securities set a $13.00 price target on Red Cat in a report on Thursday, September 17th. HC Wainwright restated a “buy” rating and set a $20.00 price objective on shares of Red Cat in a report on Friday, August 7th. Evercore started coverage on shares of Red Cat in a research note on Monday, August 31st. They issued an “outperform” rating and a $15.00 target price for the company. Finally, Needham & Company LLC cut their price target on shares of Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a research note on Friday, August 7th. Two analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $16.71.

Red Cat Trading Down 0.8%

The firm’s fifty day moving average is $8.35 and its 200 day moving average is $10.47. The company has a market cap of $791.67 million, a PE ratio of -7.96 and a beta of 1.35.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.21) by ($0.05). Red Cat had a negative return on equity of 32.25% and a negative net margin of 136.26%.The firm had revenue of $20.20 million during the quarter, compared to analyst estimates of $22.65 million. As a group, sell-side analysts anticipate that Red Cat Holdings, Inc. will post -0.79 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Christopher R. Moe sold 20,000 shares of Red Cat stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total value of $210,200.00. Following the completion of the sale, the director owned 200,502 shares in the company, valued at approximately $2,107,276.02. This trade represents a 9.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of Red Cat stock in a transaction dated 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 represents a 10.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 225,000 shares of company stock valued at $1,955,850 over the last quarter. 12.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the business. State Street Corp increased its position in Red Cat by 68.8% during the second quarter. State Street Corp now owns 12,091,447 shares of the company’s stock worth $128,774,000 after buying an additional 4,928,540 shares during the period. BlackRock Inc. purchased a new position in shares of Red Cat during the second quarter worth approximately $119,610,000. Van ECK Associates Corp acquired a new position in shares of Red Cat in the 2nd quarter valued at $27,193,000. Renaissance Technologies LLC acquired a new stake in Red Cat during the 1st quarter worth $18,533,000. Finally, AWM Investment Company Inc. purchased a new position in Red Cat during the 2nd quarter worth $9,313,000. 37.97% of the stock is owned by institutional investors and hedge funds.

About Red Cat

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.