Red Cat (NASDAQ:RCAT) Shares Down 2.4% – Here’s What Happened

Red Cat Holdings, Inc. (NASDAQ:RCAT) fell 2.4% during trading on Monday. The company traded as low as $6.46 and last traded at $6.50. 5,987,571 shares changed hands during trading, a decline of 54% from the average daily volume of 12,984,189 shares. The stock had previously closed at $6.66.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on RCAT shares. Northland Securities set a $13.00 price target on shares of Red Cat in a research report on Thursday, September 17th. Piper Sandler initiated coverage on shares of Red Cat in a research report on Wednesday, September 2nd. They set a “neutral” rating and a $9.00 price objective for the company. Roth Capital assumed coverage on shares of Red Cat in a research note on Monday, June 1st. They issued a “buy” rating and a $25.00 price objective for the company. Weiss Ratings restated a “sell (d-)” rating on shares of Red Cat in a report on Friday, July 17th. Finally, Evercore assumed coverage on shares of Red Cat in a report on Monday, August 31st. They issued an “outperform” rating and a $15.00 target price on the stock. Two investment analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $16.71.

Red Cat Trading Down 2.4%

The firm has a market capitalization of $797.81 million, a P/E ratio of -8.02 and a beta of 1.35. The firm has a 50 day moving average price of $8.42 and a 200-day moving average price of $10.60.

Red Cat (NASDAQ:RCAT) last released its 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 net margin of 136.26% and a negative return on equity of 32.25%. The company had revenue of $20.20 million for the quarter, compared to the consensus estimate of $22.65 million. Research analysts anticipate that Red Cat Holdings, Inc. will post -0.79 earnings per share for the current year.

Insiders Place Their Bets

In other Red Cat news, Director Nicholas Liuzza, Jr. sold 55,000 shares of the business’s stock in a transaction on 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 owned 489,874 shares in the company, valued at $5,207,360.62. The trade was a 10.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Christopher 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 transaction, the director owned 200,502 shares in the company, valued at $2,107,276.02. This trade represents a 9.07% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 225,000 shares of company stock valued at $1,955,850 over the last three months. 12.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Red Cat

A number of large investors have recently made changes to their positions in the company. CoreCap Advisors LLC raised its holdings in shares of Red Cat by 13.8% in the second quarter. CoreCap Advisors LLC now owns 9,039 shares of the company’s stock worth $96,000 after buying an additional 1,095 shares during the period. Western Wealth Management LLC lifted its stake in shares of Red Cat by 4.5% during the 1st quarter. Western Wealth Management LLC now owns 36,722 shares of the company’s stock worth $481,000 after acquiring an additional 1,570 shares during the last quarter. Cambridge Investment Research Advisors Inc. boosted its holdings in Red Cat by 1.2% during the 2nd quarter. Cambridge Investment Research Advisors Inc. now owns 140,804 shares of the company’s stock valued at $1,500,000 after acquiring an additional 1,608 shares during the period. Wealthfront Advisers LLC boosted its holdings in Red Cat by 15.7% during the 1st quarter. Wealthfront Advisers LLC now owns 12,959 shares of the company’s stock valued at $170,000 after acquiring an additional 1,754 shares during the period. Finally, The Manufacturers Life Insurance Company grew its position in Red Cat by 4.2% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 49,008 shares of the company’s stock valued at $522,000 after acquiring an additional 1,961 shares during the last quarter. 37.97% of the stock is owned by hedge funds and other institutional investors.

About Red Cat

Red Cat Holdings, Inc is a drone technology company that develops and supplies small unmanned aircraft systems for military, government, public safety and commercial applications. Its solutions are designed to support intelligence, surveillance and reconnaissance, situational awareness, and other missions requiring portable and rapidly deployable aerial systems.

Through its Teal Drones business, Red Cat offers the Teal 2 and related Black Widow systems, compact drones designed for defense and public-safety users.