Red Cat (NASDAQ:RCAT) Stock Price Down 9.4% – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares were down 9.4% during trading on Friday . The stock traded as low as $12.59 and last traded at $12.68. Approximately 11,394,906 shares traded hands during trading, a decline of 32% from the average daily volume of 16,722,244 shares. The stock had previously closed at $14.00.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on RCAT shares. Northland Securities set a $22.00 price target on shares of Red Cat in a research report on Tuesday, January 20th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Red Cat in a report on Thursday, January 22nd. Needham & Company LLC lifted their price objective on Red Cat from $16.00 to $20.00 and gave the company a “buy” rating in a report on Thursday, March 19th. LADENBURG THALM/SH SH upped their target price on Red Cat from $15.00 to $20.00 and gave the company a “buy” rating in a research report on Tuesday, March 3rd. Finally, Wall Street Zen raised Red Cat from a “sell” rating to a “hold” rating in a report on Saturday, March 21st. Two equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $20.67.

Red Cat Trading Down 9.4%

The firm’s 50-day moving average price is $14.05 and its 200 day moving average price is $11.39. The company has a market capitalization of $1.54 billion, a price-to-earnings ratio of -16.91 and a beta of 1.53.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings results on Wednesday, March 18th. The company reported ($0.17) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.14) by ($0.03). The firm had revenue of $26.24 million for the quarter, compared to analyst estimates of $24.50 million. Red Cat had a negative return on equity of 38.86% and a negative net margin of 176.96%. As a group, equities research analysts anticipate that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Red Cat

A number of large investors have recently modified their holdings of the business. Brevan Howard Capital Management LP bought a new position in Red Cat in the third quarter valued at about $19,739,000. Tudor Investment Corp ET AL raised its stake in Red Cat by 214.0% during the third quarter. Tudor Investment Corp ET AL now owns 1,277,523 shares of the company’s stock worth $13,222,000 after acquiring an additional 870,612 shares in the last quarter. AWM Investment Company Inc. lifted its holdings in shares of Red Cat by 15.3% in the second quarter. AWM Investment Company Inc. now owns 2,037,616 shares of the company’s stock worth $14,834,000 after acquiring an additional 269,942 shares during the last quarter. Kornitzer Capital Management Inc. KS bought a new position in shares of Red Cat in the third quarter worth about $880,000. Finally, Geode Capital Management LLC boosted its stake in shares of Red Cat by 142.7% in the 2nd quarter. Geode Capital Management LLC now owns 1,656,720 shares of the company’s stock valued at $12,063,000 after purchasing an additional 974,121 shares in the last quarter. Institutional investors and hedge funds own 37.97% of the company’s stock.

About Red Cat

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.