Red Cat (NASDAQ:RCAT) Reaches New 1-Year Low – Should You Sell?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) reached a new 52-week low on Wednesday. The company traded as low as $3.95 and last traded at $4.0950, with a volume of 4,185,886 shares trading hands. The stock had previously closed at $4.46.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the company. Northland Securities set a $13.00 price objective on Red Cat in a research note on Thursday, September 17th. Needham & Company LLC reissued a “buy” rating and issued a $15.00 target price on shares of Red Cat in a research note on Tuesday, October 20th. Wall Street Zen downgraded shares of Red Cat from a “sell” rating to a “strong sell” rating in a report on Saturday, July 18th. Zacks Research lowered shares of Red Cat from a “hold” rating to a “strong sell” rating in a research report on Monday, October 12th. Finally, Evercore initiated coverage on shares of Red Cat in a research report on Monday, August 31st. They set an “outperform” rating and a $15.00 price target on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $16.29.

Red Cat Price Performance

The business has a 50-day simple moving average of $6.49 and a two-hundred day simple moving average of $10.43. The stock has a market cap of $485.93 million, a price-to-earnings ratio of -4.91 and a beta of 1.72.

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 return on equity of 32.25% and a negative net margin of 136.26%. The business had revenue of $20.20 million for the quarter, compared to the consensus estimate of $22.65 million. As a group, equities analysts anticipate that Red Cat Holdings, Inc. will post -0.79 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the stock in a transaction that occurred 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 transaction, the director owned 489,874 shares in the company, valued at approximately $5,207,360.62. This trade represents a 10.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Christopher R. Moe sold 20,000 shares of Red Cat stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $10.51, for a total value of $210,200.00. Following the sale, the director directly owned 200,502 shares of the company’s stock, valued at approximately $2,107,276.02. The trade was a 9.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 375,000 shares of company stock valued at $2,632,350. Company insiders own 12.50% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Parallel Advisors LLC grew its position in Red Cat by 6,168.8% during the third quarter. Parallel Advisors LLC now owns 4,827 shares of the company’s stock worth $31,000 after buying an additional 4,750 shares in the last quarter. CenterBook Partners LP bought a new position in Red Cat during the 3rd quarter worth $515,000. Kestra Advisory Services LLC raised its holdings in Red Cat by 27.2% in the 3rd quarter. Kestra Advisory Services LLC now owns 25,111 shares of the company’s stock valued at $162,000 after acquiring an additional 5,372 shares in the last quarter. Commonwealth Equity Services LLC raised its holdings in Red Cat by 40.9% in the 3rd quarter. Commonwealth Equity Services LLC now owns 50,055 shares of the company’s stock valued at $323,000 after acquiring an additional 14,539 shares in the last quarter. Finally, Integrity Alliance LLC. bought a new stake in shares of Red Cat during the 3rd quarter valued at $142,000. Institutional investors own 37.97% of the company’s stock.

Red Cat Company Profile

Red Cat Holdings, Inc is a drone technology company that develops and provides unmanned aircraft systems, software, and related services for defense, public safety, and commercial applications. Its solutions are designed to support intelligence, surveillance, reconnaissance, and situational-awareness missions in demanding operating environments.

Through its Teal Drones subsidiary, Red Cat offers small unmanned aircraft systems such as the Teal 2, a compact drone designed for nighttime operations and short-range reconnaissance.