Red Cat (NASDAQ:RCAT) Shares Down 7.8% - Here's What Happened

Key Points

• Shares down 7.8% — Red Cat traded down to $16.01 mid‑day on Friday with about 9.6 million shares changing hands, roughly a 45% drop from its average session volume.
• Analyst mix but consensus Buy — Broker ratings range from Strong Buy to Sell, yet the MarketBeat consensus is a Buy with an average price target of $19 (Needham raised its target to $16; Northland set $22).
• Earnings miss but revenue beat — Red Cat reported ($0.16) EPS vs. ($0.07) expected and $9.65M revenue (above estimates); the company has a $1.92B market cap, a negative P/E (-36.5), and analysts expect about -0.5 EPS for the year.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s share price traded down 7.8% during mid-day trading on Friday . The stock traded as low as $16.18 and last traded at $16.0070. 9,607,197 shares were traded during trading, a decline of 45% from the average session volume of 17,312,326 shares. The stock had previously closed at $17.36.

Analysts Set New Price Targets

Several brokerages have recently commented on RCAT. LADENBURG THALM/SH SH upgraded Red Cat to a "strong-buy" rating in a report on Thursday, December 18th. Wall Street Zen downgraded Red Cat from a "hold" rating to a "sell" rating in a research note on Saturday, October 4th. Weiss Ratings reissued a "sell (d-)" rating on shares of Red Cat in a report on Wednesday, October 8th. Needham & Company LLC lifted their target price on Red Cat from $12.00 to $16.00 and gave the stock a "buy" rating in a report on Tuesday, January 13th. Finally, Northland Securities set a $22.00 price target on shares of Red Cat in a report on Tuesday. Two research analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Buy" and a consensus target price of $19.00.

Red Cat Trading Down 7.5%

The company has a fifty day moving average price of $9.24 and a two-hundred day moving average price of $9.83. The firm has a market capitalization of $1.92 billion, a price-to-earnings ratio of -36.50 and a beta of 1.48.

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. IFP Advisors Inc increased its stake in Red Cat by 181.1% in 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 in the last quarter. Montag A & Associates Inc. boosted its position in Red Cat by 552.0% during the third 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 increased its stake in Red Cat by 407.0% in the fourth quarter. Bank of America Corp DE now owns 3,397 shares of the company's stock valued at $44,000 after purchasing an additional 2,727 shares during the last quarter. Global Retirement Partners LLC acquired a new position in shares of Red Cat during the 3rd quarter valued at about $36,000. Finally, Penserra Capital Management LLC purchased a new position in Red Cat during the third quarter worth approximately $46,000. 37.97% of the stock is owned by institutional investors and hedge funds.

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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