Red Cat (NASDAQ:RCAT) Stock Price Down 3.6% - Here's Why

Key Points

• Shares fell 3.6% intraday to about $12.42 (low $12.39) from a $12.88 close, with trading volume ~8.49M shares — roughly 35% below the average session volume.
• Analyst views are mixed but the consensus rating is a Buy with a consensus price target of $19.00 (two Strong Buy, one Buy, one Sell; recent targets include Needham $16 and Northland $22).
• Red Cat is a defense/robotics holding focused on UAS and sensing solutions, with a market cap of about $1.48B and a negative trailing PE (-28.23); its 50-/200-day moving averages are $11.86 and $10.49, respectively.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) fell 3.6% during mid-day trading on Wednesday . The stock traded as low as $12.39 and last traded at $12.42. 8,493,619 shares traded hands during mid-day trading, a decline of 35% from the average session volume of 13,161,823 shares. The stock had previously closed at $12.88.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on RCAT shares. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Red Cat in a research note on Thursday, January 22nd. LADENBURG THALM/SH SH raised shares of Red Cat to a "strong-buy" rating in a research report on Thursday, December 18th. Northland Securities set a $22.00 price objective on Red Cat in a report on Tuesday, January 20th. Finally, Needham & Company LLC increased their price objective on Red Cat from $12.00 to $16.00 and gave the stock a "buy" rating in a research note on Tuesday, January 13th. Two analysts have rated the stock with a Strong Buy rating, one has given a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Buy" and a consensus price target of $19.00.

Red Cat Stock Performance

The stock has a market cap of $1.48 billion, a PE ratio of -28.23 and a beta of 1.50. The company's 50 day simple moving average is $11.86 and its 200 day simple moving average is $10.49.

Institutional Investors Weigh In On Red Cat

Several large investors have recently made changes to their positions in the business. Moors & Cabot Inc. grew its position in shares of Red Cat by 65.6% during the 2nd quarter. Moors & Cabot Inc. now owns 280,825 shares of the company's stock valued at $2,044,000 after purchasing an additional 111,225 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. raised its holdings in shares of Red Cat by 31.1% during the 2nd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 157,704 shares of the company's stock valued at $1,148,000 after buying an additional 37,407 shares in the last quarter. Rockefeller Capital Management L.P. purchased a new position in shares of Red Cat during the second quarter worth approximately $546,000. AWM Investment Company Inc. lifted its stake in Red Cat by 15.3% in the second quarter. AWM Investment Company Inc. now owns 2,037,616 shares of the company's stock worth $14,834,000 after purchasing an additional 269,942 shares during the last quarter. Finally, Kornitzer Capital Management Inc. KS bought a new position in Red Cat during the 3rd quarter worth approximately $880,000. 37.97% of the stock is owned by hedge funds and other institutional investors.

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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