Red Cat (NASDAQ:RCAT) Hits New 12-Month Low - What's Next?

Key Points

• Red Cat shares fell to a new 52-week low of $4.41, trading well below their 50-day and 200-day moving averages of $7.42 and $9.45, respectively.
• Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating and a $16.71 price target, despite the company missing quarterly earnings and revenue estimates and continuing to report significant losses.
• Insiders sold 375,000 shares worth approximately $2.63 million over the past 90 days, while institutional investors own 37.97% of the company and several major firms recently increased or initiated positions.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) shares hit a new 52-week low during trading on Thursday. The stock traded as low as $4.41 and last traded at $4.5510, with a volume of 807,400 shares traded. The stock had previously closed at $4.58.

Analysts Set New Price Targets

Several brokerages have recently weighed in on RCAT. HC Wainwright reissued a "buy" rating and issued a $20.00 price target on shares of Red Cat in a research note on Friday, August 7th. Needham & Company LLC restated a "buy" rating and set a $15.00 price objective on shares of Red Cat in a research report on Tuesday. Northland Securities set a $13.00 price objective on Red Cat in a research note on Thursday, September 17th. Evercore assumed coverage on Red Cat in a research note on Monday, August 31st. They issued an "outperform" rating and a $15.00 price objective on the stock. Finally, Piper Sandler started coverage on Red Cat in a report on Wednesday, September 2nd. They issued a "neutral" rating and a $9.00 target price on the stock. Two analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, one has given a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $16.71.

Red Cat Price Performance

The company's 50-day moving average price is $7.42 and its two-hundred day moving average price is $9.45. The company has a market capitalization of $550.49 million, a price-to-earnings ratio of -5.54 and a beta of 1.51.

Red Cat (NASDAQ:RCAT - Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share for the quarter, missing analysts' consensus estimates of ($0.21) by ($0.05). The firm had revenue of $20.20 million for the quarter, compared to the consensus estimate of $22.65 million. Red Cat had a negative return on equity of 32.25% and a negative net margin of 136.26%. On average, equities research analysts expect that Red Cat Holdings, Inc. will post -0.79 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of Red Cat stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $10.63, for a total value of $584,650.00. Following the completion of the transaction, the director directly owned 489,874 shares of the company's stock, valued at approximately $5,207,360.62. This trade represents a 10.09% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Christopher R. Moe sold 20,000 shares of the business's stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total value of $210,200.00. Following the completion of the transaction, the director directly owned 200,502 shares in the company, valued at $2,107,276.02. This represents a 9.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 375,000 shares of company stock worth $2,632,350. Company insiders own 12.50% of the company's stock.

Institutional Investors Weigh In On Red Cat

Several large investors have recently added to or reduced their stakes in the business. State Street Corp increased its holdings in Red Cat by 68.8% in the second quarter. State Street Corp now owns 12,091,447 shares of the company's stock worth $128,774,000 after purchasing an additional 4,928,540 shares in the last quarter. BlackRock Inc. bought a new position in shares of Red Cat during the 2nd quarter worth approximately $119,610,000. Van ECK Associates Corp bought a new position in shares of Red Cat during the 2nd quarter worth approximately $27,193,000. Renaissance Technologies LLC bought a new position in shares of Red Cat during the 1st quarter worth approximately $18,533,000. Finally, AWM Investment Company Inc. acquired a new stake in shares of Red Cat during the 2nd quarter worth approximately $9,313,000. Institutional investors and hedge funds own 37.97% of the company's stock.

About Red Cat

Red Cat Holdings, Inc is a drone technology company that develops and provides unmanned aircraft systems, software, and related services for defense, public safety, and commercial applications. Its solutions are designed to support intelligence, surveillance, reconnaissance, and situational-awareness missions in demanding operating environments.

Through its Teal Drones subsidiary, Red Cat offers small unmanned aircraft systems such as the Teal 2, a compact drone designed for nighttime operations and short-range reconnaissance.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.