Red Cat (NASDAQ:RCAT) Shares Down 1.5% – Time to Sell?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) dropped 1.5% during trading on Friday . The stock traded as low as $7.93 and last traded at $7.96. 5,256,376 shares traded hands during trading, a decline of 60% from the average session volume of 13,100,832 shares. The stock had previously closed at $8.08.

Analyst Ratings Changes

Several research analysts recently commented on the company. Needham & Company LLC dropped their price target on Red Cat from $20.00 to $15.00 and set a “buy” rating for the company in a research report on Friday, August 7th. UBS Group assumed coverage on Red Cat in a research note on Wednesday, May 27th. They issued a “buy” rating for the company. Wall Street Zen cut Red Cat from a “sell” rating to a “strong sell” rating in a report on Saturday, July 18th. Evercore initiated coverage on Red Cat in a research report on Monday, August 31st. They set an “outperform” rating and a $15.00 target price on the stock. Finally, Roth Capital began coverage on Red Cat in a report on Monday, June 1st. They set a “buy” rating and a $25.00 price target on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $18.00.

Red Cat Stock Down 1.6%

The stock has a market cap of $975.78 million, a P/E ratio of -9.81 and a beta of 1.35. The business has a 50 day moving average price of $8.80 and a 200 day moving average price of $11.10.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share 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 during the quarter, compared to analysts’ expectations of $22.65 million. On average, research analysts expect that Red Cat Holdings, Inc. will post -0.77 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Christopher R. Moe sold 20,000 shares of the business’s 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 completion of 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the company’s stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $10.63, for a total transaction of $584,650.00. Following the completion of the transaction, the director 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 disclosure for this sale is available in the SEC filing. Company insiders own 12.50% of the company’s stock.

Institutional Investors Weigh In On Red Cat

A number of institutional investors and hedge funds have recently added to or reduced their stakes in RCAT. Fifth Third Bancorp bought a new position in Red Cat in the 1st quarter worth about $33,000. Allworth Financial LP purchased a new stake in shares of Red Cat in the second quarter valued at approximately $28,000. IFP Advisors Inc increased its holdings in Red Cat by 181.1% during the 3rd quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock worth $28,000 after purchasing an additional 1,720 shares during the period. NFSG Corp increased its holdings in Red Cat by 200.0% during the 1st quarter. NFSG Corp now owns 3,000 shares of the company’s stock worth $39,000 after purchasing an additional 2,000 shares during the period. Finally, PNC Financial Services Group Inc. raised its position in Red Cat by 294.6% during the 1st quarter. PNC Financial Services Group Inc. now owns 3,042 shares of the company’s stock valued at $40,000 after purchasing an additional 2,271 shares in the last quarter. Institutional investors 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.