Red Cat (NASDAQ:RCAT) Stock Price Down 8% - Time to Sell?

Key Points

• Shares were down 8% intraday to $12.62 with 6.66 million shares trading, about 55% below the stock's average session volume.
• Analyst views are mixed but lean positive: two Strong Buy, one Buy and one Sell leave a MarketBeat consensus rating of Buy with a $19 consensus price target (individual targets range up to $22).
• Fundamentals show the company remains unprofitable—last quarter EPS of ($0.16) missed estimates while revenue of $9.65M beat forecasts—resulting in a negative P/E and analysts forecasting about -0.5 EPS for the year.

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) traded down 8% during trading on Tuesday . The stock traded as low as $12.33 and last traded at $12.62. 6,655,879 shares traded hands during mid-day trading, a decline of 55% from the average session volume of 14,814,613 shares. The stock had previously closed at $13.71.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on RCAT. Weiss Ratings reiterated a "sell (d-)" rating on shares of Red Cat in a research note on Thursday, January 22nd. LADENBURG THALM/SH SH raised Red Cat to a "strong-buy" rating in a report on Thursday, December 18th. Needham & Company LLC increased their target price on Red Cat from $12.00 to $16.00 and gave the stock a "buy" rating in a research note on Tuesday, January 13th. 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 Strong Buy rating, one has given a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Buy" and a consensus price target of $19.00.

Red Cat Stock Down 8.0%

The firm has a fifty day moving average of $10.95 and a 200-day moving average of $10.24. The stock has a market capitalization of $1.51 billion, a price-to-earnings ratio of -28.68 and a beta of 1.50.

Red Cat (NASDAQ:RCAT - Get Free Report) last announced its quarterly earnings results on Thursday, November 13th. The company reported ($0.16) earnings per share 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 analyst estimates of $8.18 million. As a group, research analysts forecast that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Institutional Trading of Red Cat

Several large investors have recently modified their holdings of RCAT. Thompson Siegel & Walmsley LLC purchased a new position in shares of Red Cat during the 4th quarter worth approximately $159,000. Eurizon Capital SGR S.p.A. acquired a new stake in Red Cat during the 4th quarter valued at $82,000. Kingsview Wealth Management LLC grew its holdings in Red Cat by 105.8% during the 4th quarter. Kingsview Wealth Management LLC now owns 27,885 shares of the company's stock valued at $221,000 after buying an additional 14,338 shares during the last quarter. Geode Capital Management LLC increased its position in Red Cat by 13.4% during the fourth quarter. Geode Capital Management LLC now owns 2,520,524 shares of the company's stock worth $19,991,000 after buying an additional 297,967 shares in the last quarter. Finally, Fisher Asset Management LLC acquired a new position in shares of Red Cat in the fourth quarter worth $111,000. 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.

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