Red Cat (NASDAQ:RCAT) Shares Down 9.6% – Time to Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT) fell 9.6% during trading on Friday . The company traded as low as $13.00 and last traded at $13.50. 10,700,157 shares changed hands during trading, a decline of 35% from the average session volume of 16,386,600 shares. The stock had previously closed at $14.93.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on the stock. LADENBURG THALM/SH SH upgraded shares of Red Cat to a “strong-buy” rating in a research report on Thursday, December 18th. Wall Street Zen downgraded shares of Red Cat from a “hold” rating to a “sell” rating in a research report on Saturday, October 4th. Needham & Company LLC lifted their price target on shares of Red Cat from $12.00 to $16.00 and gave the stock a “buy” rating in a report on Tuesday, January 13th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research note on Thursday, January 22nd. Finally, Northland Securities set a $22.00 target price on Red Cat in a research report on Tuesday, January 20th. Two research analysts have rated the stock with a Strong Buy rating, one has given a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Buy” and a consensus target price of $19.00.

Red Cat Stock Performance

The firm has a market cap of $1.61 billion, a P/E ratio of -30.68 and a beta of 1.48. The firm has a 50 day simple moving average of $10.11 and a 200 day simple moving average of $10.11.

Red Cat (NASDAQ:RCAT) last posted its earnings results on Thursday, November 13th. The company reported ($0.16) EPS for the quarter, missing the consensus estimate of ($0.07) by ($0.09). The company had revenue of $9.65 million during the quarter, compared to analyst estimates of $8.18 million. Sell-side analysts predict that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Institutional Investors Weigh In On Red Cat

Hedge funds have recently bought and sold shares of the stock. Moors & Cabot Inc. increased its stake in Red Cat by 65.6% in the second quarter. Moors & Cabot Inc. now owns 280,825 shares of the company’s stock valued at $2,044,000 after acquiring an additional 111,225 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. increased its position in shares of Red Cat by 31.1% during the 2nd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 157,704 shares of the company’s stock valued at $1,148,000 after purchasing an additional 37,407 shares during the last quarter. Truist Financial Corp purchased a new position in shares of Red Cat during the 2nd quarter valued at about $167,000. Rockefeller Capital Management L.P. purchased a new stake in Red Cat in the second quarter worth approximately $546,000. Finally, Wealth Enhancement Advisory Services LLC bought a new position in Red Cat during the second quarter valued at approximately $180,000. 37.97% of the stock is currently owned by institutional investors.

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.