Red Cat (NASDAQ:RCAT) Stock Price Down 7.5% - What's Next?

Key Points

• Price drop: Red Cat (RCAT) fell 7.5% on Friday to as low as $15.63 and last traded at $16.06, with 13.65M shares changing hands (about 22% below average); market cap is roughly $1.92B and the stock trades above its 50- and 200-day SMAs of $9.24 and $9.83.
• Mixed analyst views: Coverage is split — Needham raised its target to $16 with a Buy, Northland set a $22 target, two analysts have Strong Buy ratings while one has issued a Sell, yielding an average MarketBeat rating of "Buy" and an average price target of $19.
• Fundamentals and flows: The company reported a quarterly EPS miss (‑$0.16 vs. ‑$0.07 expected) but revenue topped estimates at $9.65M, sell-side forecasts a ‑0.5 EPS for the fiscal year, and institutional ownership is about 37.97% with recent notable inflows from banks and asset managers.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) fell 7.5% on Friday . The company traded as low as $15.63 and last traded at $16.06. 13,645,610 shares traded hands during mid-day trading, a decline of 22% from the average session volume of 17,599,568 shares. The stock had previously closed at $17.36.

Wall Street Analyst Weigh In

RCAT has been the topic of a number of research reports. Needham & Company LLC boosted their price target on Red Cat from $12.00 to $16.00 and gave the company a "buy" rating in a report on Tuesday, January 13th. LADENBURG THALM/SH SH raised Red Cat to a "strong-buy" rating in a research report on Thursday, December 18th. Wall Street Zen cut Red Cat from a "hold" rating to a "sell" rating in a research note on Saturday, October 4th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Red Cat in a research note on Wednesday, October 8th. Finally, Northland Securities set a $22.00 price objective on shares of Red Cat in a research report on Tuesday. Two investment 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 company. According to MarketBeat.com, the company presently has an average rating of "Buy" and an average price target of $19.00.

Red Cat Stock Down 7.5%

The stock has a market capitalization of $1.92 billion, a P/E ratio of -36.50 and a beta of 1.48. The stock has a 50 day simple moving average of $9.24 and a two-hundred day simple moving average of $9.83.

Red Cat (NASDAQ:RCAT - Get Free Report) last announced 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 during the quarter, compared to the consensus estimate of $8.18 million. Sell-side analysts predict that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of RCAT. Bank of America Corp DE lifted its stake in Red Cat by 407.0% in the 4th quarter. Bank of America Corp DE now owns 3,397 shares of the company's stock valued at $44,000 after purchasing an additional 2,727 shares during the last quarter. Royal Bank of Canada increased its position in Red Cat by 76.4% during the first quarter. Royal Bank of Canada now owns 57,800 shares of the company's stock worth $340,000 after buying an additional 25,031 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Red Cat by 63.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 229,259 shares of the company's stock valued at $1,348,000 after buying an additional 89,095 shares during the period. Goldman Sachs Group Inc. lifted its position in shares of Red Cat by 28.7% in the first quarter. Goldman Sachs Group Inc. now owns 266,099 shares of the company's stock valued at $1,565,000 after buying an additional 59,334 shares during the last quarter. Finally, Wealth Enhancement Advisory Services LLC bought a new position in shares of Red Cat during the 2nd quarter worth approximately $180,000. 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.