Red Cat (NASDAQ:RCAT) Stock Price Down 6.3% - Here's What Happened

Key Points

• Shares fell 6.3% to about $11.25 (intraday low $11.23) on Thursday, with roughly 5.99 million shares traded—about 58% below its average daily volume and down from a prior close of $12.01.
• Analyst views are mixed but tilted positive: two firms rate it Strong Buy, one Buy and one Sell, producing a MarketBeat consensus "Buy" rating and a consensus price target of $19 (individual targets range roughly $16–$22).
• Quarterly results were mixed: revenue beat estimates ($9.65M vs. $8.18M) but EPS missed (−$0.16 vs. −$0.07); Red Cat is a defense-focused UAS/robotics holding with a market cap near $1.34 billion.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) shares were down 6.3% on Thursday . The company traded as low as $11.23 and last traded at $11.25. Approximately 5,985,476 shares were traded during mid-day trading, a decline of 58% from the average daily volume of 14,311,371 shares. The stock had previously closed at $12.01.

Wall Street Analyst Weigh In

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

Red Cat Trading Down 6.3%

The stock has a market cap of $1.34 billion, a PE ratio of -25.57 and a beta of 1.50. The firm has a fifty day simple moving average of $11.15 and a two-hundred day simple moving average of $10.28.

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

Institutional Investors Weigh In On Red Cat

Hedge funds and other institutional investors have recently modified their holdings of the stock. Arizona State Retirement System raised its holdings in Red Cat by 3.0% during the 4th quarter. Arizona State Retirement System now owns 29,311 shares of the company's stock valued at $232,000 after buying an additional 855 shares during the last quarter. VestGen Advisors LLC increased its position in shares of Red Cat by 4.9% in the second quarter. VestGen Advisors LLC now owns 23,625 shares of the company's stock valued at $172,000 after acquiring an additional 1,097 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. raised its stake in shares of Red Cat by 0.7% during the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 167,084 shares of the company's stock valued at $1,325,000 after acquiring an additional 1,147 shares during the last quarter. Advisory Services Network LLC boosted its holdings in shares of Red Cat by 5.3% during the third quarter. Advisory Services Network LLC now owns 30,200 shares of the company's stock worth $313,000 after purchasing an additional 1,507 shares during the period. Finally, AlphaQuest LLC grew its stake in shares of Red Cat by 17.4% in the third quarter. AlphaQuest LLC now owns 10,839 shares of the company's stock worth $112,000 after purchasing an additional 1,608 shares during the last quarter. Institutional investors own 37.97% of the company's stock.

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.

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