Red Cat (NASDAQ:RCAT) Shares Down 3% - Time to Sell?

Key Points

• Shares fell about 3% to $11.34 on Tuesday with 6.54M shares traded (down ~58% from average); the 50‑day moving average is $13.57 while the 200‑day is $11.56, and market cap is roughly $1.37B.
• Analyst sentiment is mixed but tilted toward higher targets—several firms raised price objectives to around $20 (Northland at $22), producing a consensus rating of “Hold” and an average price target of $20.67.
• Fundamentals show continuing losses: Q1 EPS of -$0.17 missed estimates while revenue of $26.24M beat consensus, but the company has a negative net margin (~176.96%), negative ROE, and an expected full‑year EPS of -0.34.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s share price fell 3% on Tuesday . The stock traded as low as $11.13 and last traded at $11.34. 6,539,834 shares traded hands during trading, a decline of 58% from the average session volume of 15,421,123 shares. The stock had previously closed at $11.69.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on RCAT. LADENBURG THALM/SH SH raised 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. Needham & Company LLC raised their price objective on shares of Red Cat from $16.00 to $20.00 and gave the company a "buy" rating in a research report on Thursday, March 19th. Wall Street Zen upgraded shares of Red Cat from a "sell" rating to a "hold" rating in a research report on Saturday, March 21st. Northland Securities set a $22.00 price objective on shares of Red Cat in a research report on Tuesday, January 20th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Red Cat in a research report on Tuesday, April 21st. Two analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $20.67.

Red Cat Trading Down 3.0%

The company's fifty day moving average is $13.57 and its 200 day moving average is $11.56. The company has a market cap of $1.37 billion, a P/E ratio of -15.12 and a beta of 1.46.

Red Cat (NASDAQ:RCAT - Get Free Report) last released its earnings results on Wednesday, March 18th. The company reported ($0.17) EPS for the quarter, missing the consensus estimate of ($0.14) by ($0.03). Red Cat had a negative net margin of 176.96% and a negative return on equity of 38.86%. The business had revenue of $26.24 million for the quarter, compared to the consensus estimate of $24.50 million. Analysts anticipate that Red Cat Holdings, Inc. will post -0.34 EPS for the current year.

Hedge Funds Weigh In On Red Cat

Institutional investors and hedge funds have recently made changes to their positions in the business. IFP Advisors Inc grew its holdings in shares of Red Cat by 181.1% during the 3rd 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 last quarter. Montag A & Associates Inc. grew its holdings in Red Cat by 552.0% in the 3rd quarter. Montag A & Associates Inc. now owns 3,260 shares of the company's stock worth $34,000 after acquiring an additional 2,760 shares during the last quarter. Bank of America Corp DE grew its holdings 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 worth $44,000 after acquiring an additional 2,727 shares during the last quarter. Global Retirement Partners LLC bought a new stake in Red Cat in the 3rd quarter worth $36,000. Finally, Penserra Capital Management LLC bought a new stake in Red Cat in the 3rd quarter worth $46,000. Institutional investors 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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