Red Cat (NASDAQ:RCAT) Trading Down 7.1% – Here’s What Happened

Red Cat Holdings, Inc. (NASDAQ:RCAT) dropped 7.1% on Friday . The stock traded as low as $8.42 and last traded at $8.4450. Approximately 1,149,152 shares were traded during trading, a decline of 87% from the average daily volume of 8,635,492 shares. The stock had previously closed at $9.09.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the company. Needham & Company LLC dropped their target price on Red Cat from $17.00 to $12.00 and set a “buy” rating on the stock in a report on Friday, November 14th. LADENBURG THALM/SH SH raised Red Cat to a “strong-buy” rating in a report on Thursday, December 18th. Weiss Ratings restated a “sell (d-)” rating on shares of Red Cat in a research note on Wednesday, October 8th. Finally, Wall Street Zen lowered Red Cat from a “hold” rating to a “sell” rating in a report on Saturday, October 4th. Two equities research analysts have rated the stock with a Strong Buy rating, two have given a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Buy” and a consensus price target of $14.00.

Red Cat Stock Performance

The stock’s 50-day moving average price is $8.65 and its two-hundred day moving average price is $9.27. The stock has a market capitalization of $1.00 billion, a PE ratio of -18.99 and a beta of 1.48.

Red Cat (NASDAQ:RCAT) last issued 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 business had revenue of $9.65 million during the quarter, compared to analyst estimates of $8.18 million. On average, analysts predict that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Insider Buying and Selling at Red Cat

In other Red Cat news, Director Christopher R. Moe sold 10,000 shares of the stock in a transaction that occurred on Monday, September 29th. The shares were sold at an average price of $10.91, for a total transaction of $109,100.00. Following the completion of the sale, the director directly owned 53,073 shares of the company’s stock, valued at $579,026.43. This trade represents a 15.85% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 15.30% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. raised its position in Red Cat by 43.9% during the 3rd quarter. Vanguard Group Inc. now owns 5,506,377 shares of the company’s stock valued at $56,991,000 after purchasing an additional 1,680,929 shares in the last quarter. AWM Investment Company Inc. raised its position in shares of Red Cat by 15.3% in the 2nd quarter. AWM Investment Company Inc. now owns 2,037,616 shares of the company’s stock valued at $14,834,000 after purchasing an additional 269,942 shares during the last quarter. Brevan Howard Capital Management LP purchased a new stake in shares of Red Cat during the third quarter valued at $19,739,000. Davidson Kempner Capital Management LP acquired a new position in shares of Red Cat in the third quarter valued at about $17,286,000. Finally, Geode Capital Management LLC raised its position in Red Cat by 142.7% during the 2nd quarter. Geode Capital Management LLC now owns 1,656,720 shares of the company’s stock worth $12,063,000 after buying an additional 974,121 shares during 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.