Red Cat (NASDAQ:RCAT) Sets New 12-Month Low - Here's Why

Key Points

• Red Cat shares fell to a new 52-week low of $5.70, well below their 50-day and 200-day moving averages of $8.18 and $10.01, respectively.
• The company missed quarterly expectations, reporting an adjusted loss of $0.26 per share versus the expected $0.21 loss, while revenue of $20.2 million also fell short of the $22.65 million consensus estimate.
• Despite the weak performance, analysts maintain a consensus “Moderate Buy” rating with a $16.71 target price; however, insiders have sold 225,000 shares worth approximately $1.96 million over the past 90 days.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s stock price hit a new 52-week low on Friday. The stock traded as low as $5.70 and last traded at $5.7270, with a volume of 764771 shares traded. The stock had previously closed at $5.91.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on RCAT shares. Piper Sandler started coverage on Red Cat in a report on Wednesday, September 2nd. They set a "neutral" rating and a $9.00 target price on the stock. Needham & Company LLC dropped their price target on Red Cat from $20.00 to $15.00 and set a "buy" rating on the stock in a research note on Friday, August 7th. Weiss Ratings reissued a "sell (d-)" rating on shares of Red Cat in a research report on Friday, July 17th. Northland Securities set a $13.00 price target on Red Cat in a research note on Thursday, September 17th. Finally, Wall Street Zen cut shares of Red Cat from a "sell" rating to a "strong sell" rating in a report on Saturday, July 18th. Two analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Red Cat presently has a consensus rating of "Moderate Buy" and a consensus target price of $16.71.

Red Cat Price Performance

The company has a market capitalization of $712.51 million, a price-to-earnings ratio of -7.17 and a beta of 1.51. The business's 50-day moving average price is $8.18 and its two-hundred day moving average price is $10.01.

Red Cat (NASDAQ:RCAT - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported ($0.26) EPS for the quarter, missing analysts' consensus estimates of ($0.21) by ($0.05). The company had revenue of $20.20 million during 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%. As a group, research analysts predict that Red Cat Holdings, Inc. will post -0.79 EPS for the current year.

Insider Activity at Red Cat

In other Red Cat news, Director Nicholas 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 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 company's stock in a transaction that occurred on Tuesday, August 11th. The stock was 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 of the company's stock, valued at approximately $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. Insiders have sold 225,000 shares of company stock valued at $1,955,850 over the last ninety days. 12.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Fifth Third Bancorp acquired a new position in Red Cat in the first quarter valued at $33,000. Allworth Financial LP bought a new stake in shares of Red Cat during the 2nd quarter valued at about $28,000. NFSG Corp boosted its position in shares of Red Cat by 200.0% during the 1st quarter. NFSG Corp now owns 3,000 shares of the company's stock valued at $39,000 after purchasing an additional 2,000 shares in the last quarter. PNC Financial Services Group Inc. grew its stake 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 worth $40,000 after purchasing an additional 2,271 shares during the period. Finally, KBC Group NV acquired a new stake in Red Cat during the first quarter worth approximately $45,000. 37.97% of the stock is owned by institutional investors and hedge funds.

Red Cat Company Profile

Red Cat Holdings, Inc is a drone technology company that develops and supplies unmanned aircraft systems for defense, government, public safety and commercial applications. The company focuses on autonomous and remotely operated aerial systems designed to support intelligence, surveillance and reconnaissance missions, including operations in contested or GPS-denied environments.

Red Cat's product portfolio includes the Teal 2 small unmanned aircraft system, a compact drone designed for close-range reconnaissance and situational awareness.

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.