Red Cat (NASDAQ:RCAT) Trading Down 4.4% – Should You Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price dropped 4.4% during trading on Tuesday . The stock traded as low as $7.06 and last traded at $7.45. Approximately 6,284,777 shares changed hands during mid-day trading, a decline of 56% from the average session volume of 14,219,412 shares. The stock had previously closed at $7.79.

Wall Street Analysts Forecast Growth

RCAT has been the subject of a number of recent analyst reports. UBS Group initiated coverage on shares of Red Cat in a research note on Wednesday, May 27th. They issued a “buy” rating for the company. Roth Capital began coverage on shares of Red Cat in a research note on Monday, June 1st. They set a “buy” rating and a $25.00 price target on the stock. HC Wainwright began coverage on shares of Red Cat in a report on Wednesday, May 27th. They issued a “buy” rating and a $20.00 price target for the company. LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a report on Wednesday, May 6th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research note on Friday, July 17th. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Buy” and an average price target of $21.40.

Red Cat Price Performance

The stock has a fifty day moving average of $10.26 and a 200 day moving average of $12.05. The stock has a market cap of $905.82 million, a price-to-earnings ratio of -10.54 and a beta of 1.29.

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

Insider Buying and Selling at Red Cat

In related news, Director Paul Funk II sold 165,028 shares of the firm’s stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $11.50, for a total transaction of $1,897,822.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 12.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Red Cat

Several hedge funds have recently added to or reduced their stakes in the business. IFP Advisors Inc raised its stake in shares of Red Cat by 181.1% during the 3rd quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock valued at $28,000 after buying an additional 1,720 shares during the last quarter. Fifth Third Bancorp purchased a new stake in shares of Red Cat in the first quarter worth about $33,000. California State Teachers Retirement System acquired a new stake in Red Cat during the second quarter worth about $34,000. NFSG Corp grew its holdings in Red Cat by 200.0% during the first quarter. NFSG Corp now owns 3,000 shares of the company’s stock worth $39,000 after acquiring 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 first quarter. PNC Financial Services Group Inc. now owns 3,042 shares of the company’s stock valued at $40,000 after acquiring an additional 2,271 shares in the last quarter. 37.97% of the stock is owned by hedge funds and other 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.