Red Cat (NASDAQ:RCAT) Stock Price Down 4.8% - Should You Sell?

Key Points

• Red Cat (RCAT) shares fell 4.8% to $12.01 on Wednesday, trading as low as $11.47 on ~8.93 million shares—about 39% below its average daily volume; the 50‑day and 200‑day moving averages are $11.06 and $10.27, respectively.
• Analyst coverage is mixed but tilted positive: the consensus rating is Buy with an average target of $19.00 (two Strong Buy, one Buy, one Sell), and individual targets ranging roughly $12–$22.
• Fundamentals are uneven: the company missed EPS expectations (‑$0.16 vs. ‑$0.07) while beating revenue at $9.65M; market cap is about $1.43B, it has a negative P/E, and roughly 38% of shares are held by institutions that have recently increased positions.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s stock price dropped 4.8% during trading on Wednesday . The company traded as low as $11.47 and last traded at $12.01. Approximately 8,925,522 shares changed hands during trading, a decline of 39% from the average daily volume of 14,607,225 shares. The stock had previously closed at $12.62.

Analyst Ratings Changes

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

Red Cat Stock Down 4.8%

The business has a 50-day simple moving average of $11.06 and a two-hundred day simple moving average of $10.27. The stock has a market capitalization of $1.43 billion, a price-to-earnings ratio of -27.30 and a beta of 1.50.

Red Cat (NASDAQ:RCAT - Get Free Report) last posted its quarterly earnings results on Thursday, November 13th. The company reported ($0.16) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.07) by ($0.09). The business had revenue of $9.65 million during the quarter, compared to the consensus estimate of $8.18 million. On average, analysts forecast that Red Cat Holdings, Inc. will post -0.5 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Brevan Howard Capital Management LP acquired a new stake in shares of Red Cat during the third quarter valued at approximately $19,739,000. Vanguard Group Inc. grew its position in Red Cat by 43.9% during the 3rd quarter. Vanguard Group Inc. now owns 5,506,377 shares of the company's stock worth $56,991,000 after purchasing an additional 1,680,929 shares in the last quarter. Davidson Kempner Capital Management LP purchased a new position in Red Cat during the 3rd quarter worth approximately $17,286,000. CenterBook Partners LP raised its stake in Red Cat by 1,872.4% during the 4th quarter. CenterBook Partners LP now owns 1,105,132 shares of the company's stock valued at $8,764,000 after purchasing an additional 1,049,101 shares during the period. Finally, Geode Capital Management LLC lifted its holdings in shares of Red Cat by 142.7% in the second quarter. Geode Capital Management LLC now owns 1,656,720 shares of the company's stock valued at $12,063,000 after purchasing an additional 974,121 shares in the last quarter. 37.97% of the stock is currently owned by institutional investors and hedge funds.

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.