Red Cat (NASDAQ:RCAT) Trading Down 8.5% – Time to Sell?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) fell 8.5% during trading on Friday . The stock traded as low as $8.45 and last traded at $8.49. Approximately 7,115,263 shares traded hands during trading, a decline of 47% from the average daily volume of 13,513,179 shares. The stock had previously closed at $9.28.

Wall Street Analyst Weigh In

RCAT has been the subject of a number of research reports. Needham & Company LLC cut their price objective on shares of Red Cat from $20.00 to $15.00 and set a “buy” rating for the company in a research note on Friday, August 7th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research report on Friday, July 17th. Wall Street Zen downgraded shares of Red Cat from a “sell” rating to a “strong sell” rating in a research note on Saturday, July 18th. LADENBURG THALM/SH SH upgraded shares of Red Cat to a “strong-buy” rating in a research report on Wednesday, May 6th. Finally, HC Wainwright reaffirmed a “buy” rating and set a $20.00 price objective on shares of Red Cat in a research note on Friday, August 7th. Two investment 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 company’s stock. According to MarketBeat.com, Red Cat has a consensus rating of “Buy” and an average price target of $20.40.

Red Cat Stock Down 8.5%

The company has a 50-day simple moving average of $9.10 and a two-hundred day simple moving average of $11.34. The stock has a market cap of $1.04 billion, a P/E ratio of -10.48 and a beta of 1.31.

Red Cat (NASDAQ:RCAT) last issued its earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing the consensus estimate 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 the consensus estimate of $22.65 million. As a group, sell-side analysts forecast that Red Cat Holdings, Inc. will post -0.78 earnings per share for the current fiscal year.

Insider Buying and Selling at Red Cat

In other Red Cat news, Director Paul Funk II sold 165,028 shares of the business’s 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 transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the company’s stock in a transaction dated 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 of the company’s stock, valued at approximately $5,207,360.62. This trade 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 240,028 shares of company stock valued at $2,692,672 in the last quarter. Company insiders own 12.50% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of RCAT. Sei Investments Co. bought a new stake in shares of Red Cat during the 1st quarter valued at about $2,328,000. Janus Henderson Group PLC increased its position in shares of Red Cat by 733.7% during 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 during the period. EVR Research LP bought a new position in Red Cat in the fourth quarter worth about $1,705,000. Empowered Funds LLC bought a new position in Red Cat in the first quarter worth about $2,232,000. Finally, Caitong International Asset Management Co. Ltd lifted its holdings in Red Cat by 1,825.1% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 54,152 shares of the company’s stock worth $429,000 after buying an additional 51,339 shares during the period. Hedge funds and other 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.