Red Cat (NASDAQ:RCAT) Sets New 12-Month Low – Here’s What Happened

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) reached a new 52-week low during trading on Thursday. The stock traded as low as $4.72 and last traded at $4.73, with a volume of 8,743,140 shares changing hands. The stock had previously closed at $5.18.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the stock. Wall Street Zen cut shares of Red Cat from a “sell” rating to a “strong sell” rating in a report on Saturday, July 18th. Evercore initiated coverage on shares of Red Cat in a research note on Monday, August 31st. They set an “outperform” rating and a $15.00 target price on the stock. HC Wainwright restated a “buy” rating and set a $20.00 target price on shares of Red Cat in a research report on Friday, August 7th. Needham & Company LLC cut their price target on Red Cat from $20.00 to $15.00 and set a “buy” rating for the company in a research note on Friday, August 7th. Finally, Northland Securities set a $13.00 price target on Red Cat in a research note on Thursday, September 17th. Two equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Red Cat currently has a consensus rating of “Moderate Buy” and a consensus price target of $16.71.

Red Cat Stock Performance

The firm has a market capitalization of $580.56 million, a price-to-earnings ratio of -5.84 and a beta of 1.51. The company has a 50 day moving average price of $7.93 and a two-hundred day moving average price of $9.72.

Red Cat (NASDAQ:RCAT) last announced its 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 net margin of 136.26% and a negative return on equity of 32.25%. The business had revenue of $20.20 million for the quarter, compared to analysts’ expectations of $22.65 million. On average, equities analysts expect that Red Cat Holdings, Inc. will post -0.79 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Red Cat news, Director Christopher R. Moe sold 20,000 shares of the stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total transaction of $210,200.00. Following the transaction, the director directly 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 accessible through this hyperlink. Also, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $10.63, for a total transaction of $584,650.00. Following the transaction, the director directly owned 489,874 shares in the company, valued at approximately $5,207,360.62. The trade was a 10.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 225,000 shares of company stock valued at $1,955,850. 12.50% of the stock is owned by corporate insiders.

Institutional Trading of Red Cat

A number of institutional investors and hedge funds have recently modified their holdings of RCAT. State Street Corp raised its position in shares of Red Cat by 68.8% during the 2nd quarter. State Street Corp now owns 12,091,447 shares of the company’s stock worth $128,774,000 after purchasing an additional 4,928,540 shares during the last quarter. BlackRock Inc. acquired a new stake in Red Cat in the 2nd quarter worth about $119,610,000. Van ECK Associates Corp acquired a new stake in Red Cat in the 2nd quarter worth about $27,193,000. Renaissance Technologies LLC purchased a new stake in Red Cat during the 1st quarter worth approximately $18,533,000. Finally, AWM Investment Company Inc. purchased a new stake in Red Cat during the 2nd quarter worth approximately $9,313,000. Hedge funds and other institutional investors own 37.97% of the company’s stock.

About Red Cat

Red Cat Holdings, Inc is a drone technology company that develops and supplies unmanned aircraft systems for defense, government, public safety and commercial applications. The company focuses on autonomous and remotely operated aerial systems designed to support intelligence, surveillance and reconnaissance missions, including operations in contested or GPS-denied environments.

Red Cat’s product portfolio includes the Teal 2 small unmanned aircraft system, a compact drone designed for close-range reconnaissance and situational awareness.