Red Cat (NASDAQ:RCAT) Shares Down 11.4% - Here's Why

Key Points

• Shares fell 11.4% intraday (from $14.25 to a low of $11.68, last at $12.63) on Wednesday with about 12.5 million shares traded, roughly 21% below the stock's average session volume.
• Analysts are mixed but generally positive — the consensus rating is "Buy" with an average target of $19; recent notes include Needham raising its target to $16 and Northland at $22, while Weiss Ratings maintained a "sell (d-)".
• Fundamentals show a recent EPS miss (loss of $0.16 vs. $0.07 expected) despite revenue beating estimates ($9.65M vs. $8.18M); Red Cat has a $1.51B market cap, a negative PE (-28.7), and about 38% institutional ownership.

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) traded down 11.4% during trading on Wednesday . The company traded as low as $11.68 and last traded at $12.63. 12,499,346 shares were traded during trading, a decline of 21% from the average session volume of 15,731,544 shares. The stock had previously closed at $14.25.

Wall Street Analyst Weigh In

RCAT has been the topic of a number of recent analyst reports. Needham & Company LLC boosted their price target on shares of Red Cat from $12.00 to $16.00 and gave the company a "buy" rating in a report on Tuesday, January 13th. Weiss Ratings reissued a "sell (d-)" rating on shares of Red Cat in a research note on Thursday, January 22nd. Northland Securities set a $22.00 target price on Red Cat in a report on Tuesday, January 20th. Finally, LADENBURG THALM/SH SH upgraded Red Cat to a "strong-buy" rating in a report on Thursday, December 18th. Two investment analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Buy" and an average target price of $19.00.

Red Cat Trading Down 11.4%

The firm has a market capitalization of $1.51 billion, a PE ratio of -28.70 and a beta of 1.50. The firm's fifty day moving average price is $10.53 and its 200 day moving average price is $10.16.

Red Cat (NASDAQ:RCAT - Get Free Report) last released its quarterly earnings data on Thursday, November 13th. The company reported ($0.16) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.09). The company had revenue of $9.65 million during the quarter, compared to analysts' expectations of $8.18 million. As a group, research analysts expect that Red Cat Holdings, Inc. will post -0.5 EPS for the current year.

Institutional Trading of Red Cat

Several large investors have recently added to or reduced their stakes in RCAT. Brevan Howard Capital Management LP bought a new stake in Red Cat in the third quarter worth $19,739,000. Vanguard Group Inc. lifted its position in shares of Red Cat by 43.9% in the third quarter. Vanguard Group Inc. now owns 5,506,377 shares of the company's stock worth $56,991,000 after buying an additional 1,680,929 shares during the last quarter. Davidson Kempner Capital Management LP bought a new stake in shares of Red Cat during the 3rd quarter worth about $17,286,000. Geode Capital Management LLC boosted its stake in shares of 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 acquiring an additional 974,121 shares in the last quarter. Finally, Tudor Investment Corp ET AL increased its holdings in shares of Red Cat by 214.0% during the 3rd quarter. Tudor Investment Corp ET AL now owns 1,277,523 shares of the company's stock valued at $13,222,000 after acquiring an additional 870,612 shares during the last quarter. 37.97% of the stock is owned by 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.

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.