Red Cat (NASDAQ:RCAT) Stock Price Down 7.2% - Here's Why

Key Points

• Shares fell 7.2% midday to as low as $12.01 (last $12.15) on about 13.54M shares versus a 16.61M average, with a market cap of $1.47B and a negative P/E (-16.20).
• Analyst sentiment is mixed: two Buys and one Sell produce an average rating of Hold and an average price target of $20.67, with several recent upgrades lifting targets into the $20–$22 range.
• Red Cat posted an EPS miss (‑$0.17 vs. ‑$0.14 expected) while beating revenue estimates ($26.24M vs. $24.50M), and the company has steep negative margins and ROE; analysts expect FY EPS of about ‑$0.50.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) shares dropped 7.2% during mid-day trading on Wednesday . The company traded as low as $12.01 and last traded at $12.15. Approximately 13,536,592 shares traded hands during mid-day trading, a decline of 19% from the average daily volume of 16,613,682 shares. The stock had previously closed at $13.09.

Analyst Upgrades and Downgrades

RCAT has been the topic of a number of research analyst reports. Wall Street Zen raised shares of Red Cat from a "sell" rating to a "hold" rating in a report on Saturday, March 21st. LADENBURG THALM/SH SH increased their target price on shares of Red Cat from $15.00 to $20.00 and gave the company a "buy" rating in a report on Tuesday, March 3rd. Needham & Company LLC lifted their price target on shares of Red Cat from $16.00 to $20.00 and gave the company a "buy" rating in a research report on Thursday, March 19th. Weiss Ratings reissued 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 target on Red Cat in a report on Tuesday, January 20th. Two analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $20.67.

Red Cat Trading Down 7.2%

The firm has a 50 day moving average price of $13.98 and a 200-day moving average price of $11.43. The firm has a market cap of $1.47 billion, a price-to-earnings ratio of -16.20 and a beta of 1.53.

Red Cat (NASDAQ:RCAT - Get Free Report) last issued its quarterly earnings data on Wednesday, March 18th. The company reported ($0.17) EPS for the quarter, missing analysts' consensus estimates of ($0.14) by ($0.03). Red Cat had a negative net margin of 176.96% and a negative return on equity of 38.86%. The business had revenue of $26.24 million during the quarter, compared to analyst estimates of $24.50 million. As a group, equities analysts expect that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Institutional Trading of Red Cat

Several large investors have recently modified their holdings of RCAT. IFP Advisors Inc raised its position in shares of Red Cat by 181.1% during the 3rd quarter. IFP Advisors Inc now owns 2,670 shares of the company's stock worth $28,000 after purchasing an additional 1,720 shares during the last quarter. Montag A & Associates Inc. grew its holdings in Red Cat by 552.0% during the 3rd quarter. Montag A & Associates Inc. now owns 3,260 shares of the company's stock valued at $34,000 after buying an additional 2,760 shares during the last quarter. California State Teachers Retirement System acquired a new stake in Red Cat during the 2nd quarter valued at $34,000. Global Retirement Partners LLC purchased a new position in Red Cat during the third quarter worth $36,000. Finally, N.E.W. Advisory Services LLC increased its position in Red Cat by 163.5% during the fourth quarter. N.E.W. Advisory Services LLC now owns 5,356 shares of the company's stock worth $42,000 after buying an additional 3,323 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.

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