Red Cat (NASDAQ:RCAT) Shares Down 1.9% - Here's Why

Key Points

• Shares fell 1.9% to $15.86 on Friday with volume about 17.62 million shares (up 8% vs. the average), and the stock has a market cap of $1.89 billion and a negative P/E of -36.05.
• Analyst views are mixed—two Buy ratings and one Sell lead to an average consensus of Hold with an average price target of $19.33 (range roughly $15–$22).
• Red Cat is a defense-focused tech holding that develops unmanned aerial systems, autonomy and sensing solutions, and institutional investors own about 37.97% of the stock with several funds recently increasing positions.

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) fell 1.9% during trading on Friday . The company traded as low as $15.47 and last traded at $15.86. Approximately 17,619,662 shares changed hands during trading, an increase of 8% from the average session volume of 16,285,238 shares. The stock had previously closed at $16.16.

Wall Street Analyst Weigh In

RCAT has been the topic of a number of research reports. Northland Securities set a $22.00 target price on shares of Red Cat in a research report on Tuesday, January 20th. Needham & Company LLC restated a "buy" rating and issued a $16.00 price target on shares of Red Cat in a research report on Monday, March 2nd. Weiss Ratings restated a "sell (d-)" rating on shares of Red Cat in a report on Thursday, January 22nd. Finally, LADENBURG THALM/SH SH upped their price objective on shares of Red Cat from $15.00 to $20.00 and gave the company a "buy" rating in a research report on Tuesday, March 3rd. Two investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and an average target price of $19.33.

Red Cat Trading Down 1.9%

The stock has a market cap of $1.89 billion, a P/E ratio of -36.05 and a beta of 1.53. The company's fifty day simple moving average is $13.32 and its 200-day simple moving average is $10.89.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in RCAT. IFP Advisors Inc boosted its holdings in Red Cat by 181.1% during 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 in the last quarter. Montag A & Associates Inc. lifted its position in shares of Red Cat by 552.0% during the 3rd quarter. Montag A & Associates Inc. now owns 3,260 shares of the company's stock worth $34,000 after buying an additional 2,760 shares during the period. Bank of America Corp DE boosted its stake in Red Cat by 407.0% in the 4th quarter. Bank of America Corp DE now owns 3,397 shares of the company's stock valued at $44,000 after buying an additional 2,727 shares in the last quarter. Global Retirement Partners LLC acquired a new stake in Red Cat in the 3rd quarter valued at $36,000. Finally, Penserra Capital Management LLC bought a new stake in Red Cat in the third quarter valued at $46,000. Institutional investors and hedge funds own 37.97% of the company's stock.

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.

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