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

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s share price gapped down before the market opened on Tuesday . The stock had previously closed at $9.19, but opened at $8.17. Red Cat shares last traded at $7.45, with a volume of 5,573,463 shares.

Analyst Ratings Changes

A number of brokerages recently weighed in on RCAT. Northland Capmk raised shares of Red Cat to a "strong-buy" rating in a research report on Monday, March 10th. Northland Securities started coverage on shares of Red Cat in a report on Tuesday, March 11th. They issued an "outperform" rating and a $13.00 price objective on the stock.

Red Cat Stock Performance

The stock has a market cap of $663.72 million, a price-to-earnings ratio of -13.52 and a beta of 1.40. The business's fifty day simple moving average is $6.38 and its 200 day simple moving average is $7.74.

Red Cat (NASDAQ:RCAT - Get Free Report) last issued its earnings results on Wednesday, May 14th. The company reported ($0.27) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.10) by ($0.17). Red Cat had a negative net margin of 232.62% and a negative return on equity of 98.48%. As a group, analysts forecast that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Institutional Investors Weigh In On Red Cat

Institutional investors have recently modified their holdings of the stock. Twin Tree Management LP acquired a new stake in shares of Red Cat in the 4th quarter valued at about $28,000. Bank of America Corp DE lifted its holdings 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 worth $44,000 after acquiring an additional 2,727 shares during the last quarter. Mark Sheptoff Financial Planning LLC bought a new position in Red Cat in the fourth quarter worth about $48,000. SBI Securities Co. Ltd. lifted its holdings in Red Cat by 104.4% in the first quarter. SBI Securities Co. Ltd. now owns 9,467 shares of the company's stock worth $56,000 after acquiring an additional 4,835 shares during the last quarter. Finally, Summit Trail Advisors LLC bought a new position in Red Cat in the first quarter worth about $59,000. Institutional investors and hedge funds own 37.97% of the company's stock.

Red Cat Company Profile

Red Cat Holdings, Inc engages in the provision of various products, services, and solutions to the drone industry. The company operates through two segments: Enterprise and Consumer. It built infrastructure to manages drone fleets and fly, and provide services remotely, navigate confined industrial interior spaces and dangerous military environment.