Red Cat (NASDAQ:RCAT) Stock Price Down 4.4% - Here's What Happened

Key Points

• Red Cat shares fell 4.4% to $7.45 in mid-day trading, with volume down 56% from the average session. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment remains broadly positive, with a consensus “Buy” rating and an average price target of $21.40, although ratings range from “Strong Buy” to “Strong Sell.”
• The company’s latest quarterly results missed expectations, reporting a loss of $0.22 per share versus the expected $0.12 loss and revenue of $15.47 million versus the $17.63 million estimate, despite 849.1% year-over-year revenue growth.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) traded down 4.4% during mid-day trading on Tuesday . The stock traded as low as $7.06 and last traded at $7.45. 6,284,777 shares traded hands during mid-day trading, a decline of 56% from the average session volume of 14,219,412 shares. The stock had previously closed at $7.79.

Analyst Ratings Changes

A number of research analysts have commented on RCAT shares. Wall Street Zen lowered Red Cat from a "sell" rating to a "strong sell" rating in a research report on Saturday, July 18th. Clear Str upgraded Red Cat to a "strong-buy" rating in a research report on Wednesday, April 29th. HC Wainwright began coverage on Red Cat in a research note on Wednesday, May 27th. They set a "buy" rating and a $20.00 target price on the stock. LADENBURG THALM/SH SH upgraded Red Cat to a "strong-buy" rating in a report on Wednesday, May 6th. Finally, Roth Capital assumed coverage on Red Cat in a research note on Monday, June 1st. They issued a "buy" rating and a $25.00 price target for the company. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average target price of $21.40.

Red Cat Trading Down 4.4%

The business's 50 day moving average price is $10.32 and its two-hundred day moving average price is $12.11. The stock has a market cap of $914.43 million, a P/E ratio of -10.64 and a beta of 1.29.

Red Cat (NASDAQ:RCAT - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.12) by ($0.10). The company had revenue of $15.47 million during the quarter, compared to the consensus estimate of $17.63 million. Red Cat had a negative return on equity of 35.86% and a negative net margin of 138.36%.Red Cat's quarterly revenue was up 849.1% compared to the same quarter last year. As a group, analysts expect that Red Cat Holdings, Inc. will post -0.68 earnings per share for the current year.

Insider Activity

In other news, Director Paul Funk II sold 165,028 shares of the firm's stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $11.50, for a total value of $1,897,822.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Corporate insiders own 12.50% of the company's stock.

Institutional Investors Weigh In On Red Cat

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. State Street Corp raised its holdings in Red Cat by 136.4% in the fourth quarter. State Street Corp now owns 6,612,153 shares of the company's stock worth $52,434,000 after purchasing an additional 3,815,310 shares in the last quarter. Vanguard Group Inc. boosted its holdings in shares of Red Cat by 43.9% during the 3rd quarter. Vanguard Group Inc. now owns 5,506,377 shares of the company's stock valued at $56,991,000 after buying an additional 1,680,929 shares in the last quarter. Davidson Kempner Capital Management LP bought a new stake in shares of Red Cat during the 3rd quarter valued at $17,286,000. Renaissance Technologies LLC purchased a new stake in shares of Red Cat in the 1st quarter worth about $18,533,000. Finally, CenterBook Partners LP grew its position in shares of Red Cat by 1,872.4% in the 4th quarter. CenterBook Partners LP now owns 1,105,132 shares of the company's stock worth $8,764,000 after buying an additional 1,049,101 shares during the period. 37.97% of the stock is owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.