Red Cat (NASDAQ:RCAT) Stock Price Down 7.5% – Time to Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares dropped 7.5% on Monday . The stock traded as low as $10.47 and last traded at $10.5850. 2,903,548 shares were traded during trading, a decline of 81% from the average session volume of 15,257,425 shares. The stock had previously closed at $11.44.

Analysts Set New Price Targets

RCAT has been the topic of several research analyst reports. Clear Str upgraded shares of Red Cat to a “strong-buy” rating in a research note on Wednesday, April 29th. Wall Street Zen upgraded Red Cat from a “strong sell” rating to a “sell” rating in a research report on Saturday, June 6th. Roth Mkm assumed coverage on Red Cat in a report on Monday, June 1st. They issued a “buy” rating and a $25.00 target price on the stock. HC Wainwright initiated coverage on Red Cat in a research report on Wednesday, May 27th. They issued a “buy” rating and a $20.00 target price on the stock. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a research note on Tuesday, April 21st. Two analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus price target of $21.40.

Red Cat Stock Performance

The business’s fifty day moving average price is $11.53 and its two-hundred day moving average price is $12.02. The stock has a market capitalization of $1.25 billion, a P/E ratio of -14.54 and a beta of 1.23.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings results on Thursday, May 7th. The company reported ($0.22) EPS for the quarter, missing analysts’ consensus estimates of ($0.12) by ($0.10). The business had revenue of $15.47 million during the quarter, compared to the consensus estimate of $17.63 million. Red Cat had a negative net margin of 138.36% and a negative return on equity of 35.86%. The firm’s revenue for the quarter was up 849.1% on a year-over-year basis. As a group, analysts forecast that Red Cat Holdings, Inc. will post -0.68 earnings per share for the current year.

Insider Transactions at Red Cat

In other news, Director Paul Funk II sold 165,028 shares of the firm’s stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $11.50, for a total value of $1,897,822.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 12.50% of the stock is currently owned by company insiders.

Institutional Trading of Red Cat

Several hedge funds and other institutional investors have recently bought and sold shares of RCAT. Arizona State Retirement System lifted its stake in Red Cat by 3.0% in the fourth quarter. Arizona State Retirement System now owns 29,311 shares of the company’s stock worth $232,000 after purchasing an additional 855 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. grew its stake in shares of Red Cat by 0.7% during the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 167,084 shares of the company’s stock valued at $1,325,000 after buying an additional 1,147 shares during the last quarter. Advisory Services Network LLC grew its stake in shares of Red Cat by 5.3% during the third quarter. Advisory Services Network LLC now owns 30,200 shares of the company’s stock valued at $313,000 after buying an additional 1,507 shares during the last quarter. Western Wealth Management LLC grew its stake in shares of Red Cat by 4.5% during the first quarter. Western Wealth Management LLC now owns 36,722 shares of the company’s stock valued at $481,000 after buying an additional 1,570 shares during the last quarter. Finally, IFP Advisors Inc raised its holdings in shares of Red Cat by 181.1% in the third quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock worth $28,000 after buying an additional 1,720 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.