Red Cat (NASDAQ:RCAT) Stock Price Down 2% - Here's What Happened

Key Points

• Red Cat shares fell 2% to $8.37, with trading volume down 62% from the stock’s average daily level. The stock remains below its 50-day and 200-day moving averages of $9.00 and $11.23, respectively.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an $18.00 target price, despite recent ratings ranging from “Strong Sell” to “Buy.”
• Red Cat’s latest quarterly results missed expectations: the company reported a $0.26 loss per share versus a projected $0.21 loss and revenue of $20.2 million versus $22.65 million expected. Directors also sold a combined 75,000 shares in August, while insiders sold $2.69 million worth of stock over the past quarter.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) traded down 2% on Friday . The stock traded as low as $8.24 and last traded at $8.37. Approximately 5,067,935 shares traded hands during mid-day trading, a decline of 62% from the average daily volume of 13,281,207 shares. The stock had previously closed at $8.54.

Wall Street Analysts Forecast Growth

A number of analysts have commented on RCAT shares. Weiss Ratings reiterated a "sell (d-)" rating on shares of Red Cat in a research report on Friday, July 17th. Wall Street Zen cut Red Cat from a "sell" rating to a "strong sell" rating in a research report on Saturday, July 18th. UBS Group started coverage on Red Cat in a research note on Wednesday, May 27th. They set a "buy" rating for the company. Piper Sandler began coverage on shares of Red Cat in a research report on Wednesday. They issued a "neutral" rating and a $9.00 price objective on the stock. Finally, Needham & Company LLC lowered their price objective on shares of Red Cat from $20.00 to $15.00 and set a "buy" rating on the stock in a research note on Friday, August 7th. Two research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $18.00.

Red Cat Stock Down 2.0%

The firm's 50 day moving average is $9.00 and its 200-day moving average is $11.23. The firm has a market cap of $1.03 billion, a PE ratio of -10.33 and a beta of 1.35.

Red Cat (NASDAQ:RCAT - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported ($0.26) EPS for the quarter, missing the consensus estimate of ($0.21) by ($0.05). Red Cat had a negative return on equity of 32.25% and a negative net margin of 136.26%.The firm had revenue of $20.20 million during the quarter, compared to analysts' expectations of $22.65 million. On average, analysts forecast that Red Cat Holdings, Inc. will post -0.78 earnings per share for the current year.

Insider Activity

In other news, Director Nicholas Liuzza, Jr. sold 55,000 shares of Red Cat stock in a transaction on 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 sale, the director owned 489,874 shares of the company's stock, valued at $5,207,360.62. The trade was a 10.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Christopher Moe sold 20,000 shares of the company's stock in a transaction on 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 owned 200,502 shares of the company's stock, valued at $2,107,276.02. The trade was a 9.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 240,028 shares of company stock valued at $2,692,672 over the last quarter. Company insiders own 12.50% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Allworth Financial LP acquired a new stake in shares of Red Cat in the second quarter worth approximately $28,000. IFP Advisors Inc grew its holdings in Red Cat by 181.1% in the third quarter. IFP Advisors Inc now owns 2,670 shares of the company's stock valued at $28,000 after purchasing an additional 1,720 shares during the period. Fifth Third Bancorp acquired a new position in Red Cat during the first quarter worth approximately $33,000. California State Teachers Retirement System purchased a new position in Red Cat during the second quarter worth approximately $34,000. Finally, NFSG Corp raised its stake 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 purchasing an additional 2,000 shares during the period. Institutional investors and hedge funds own 37.97% of the company's stock.

About Red Cat

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.

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