Red Cat (NASDAQ:RCAT) Stock Price Down 8.8% - What's Next?

Key Points

• Red Cat shares fell 8.8% on Wednesday, trading as low as $7.78 and closing well below the prior session at $8.59, with volume slightly under its daily average.
• Analyst sentiment remains mixed but leans positive overall: recent changes included a downgrade from Wall Street Zen to strong sell, while UBS, Ladenburg Thalm/SH SH, and Clear Str issued bullish ratings. The stock’s consensus price target is $21.40.
• The company recently reported a wider-than-expected quarterly loss, with EPS of -$0.22 versus estimates of -$0.12 and revenue of $15.47 million below expectations, even though revenue surged 849.1% year over year.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) shares fell 8.8% during trading on Wednesday . The stock traded as low as $7.78 and last traded at $7.83. 12,833,778 shares traded hands during mid-day trading, a decline of 11% from the average daily volume of 14,440,552 shares. The stock had previously closed at $8.59.

Analysts Set New Price Targets

Several brokerages have recently issued reports on RCAT. Wall Street Zen lowered Red Cat from a "sell" rating to a "strong sell" rating in a research report on Saturday. UBS Group assumed coverage on Red Cat in a research note on Wednesday, May 27th. They issued a "buy" rating on the stock. LADENBURG THALM/SH SH upgraded Red Cat to a "strong-buy" rating in a report on Wednesday, May 6th. Weiss Ratings reissued a "sell (d-)" rating on shares of Red Cat in a research report on Friday. Finally, Clear Str upgraded shares of Red Cat to a "strong-buy" rating in a report on Wednesday, April 29th. Two analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Buy" and an average price target of $21.40.

Red Cat Trading Down 8.8%

The company has a market cap of $961.07 million, a PE ratio of -11.19 and a beta of 1.29. The firm has a 50 day moving average of $10.45 and a two-hundred day moving average of $12.16.

Red Cat (NASDAQ:RCAT - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported ($0.22) EPS for the quarter, missing the consensus estimate of ($0.12) by ($0.10). Red Cat had a negative return on equity of 35.86% and a negative net margin of 138.36%.The company had revenue of $15.47 million during the quarter, compared to the consensus estimate of $17.63 million. Red Cat's revenue for the quarter was up 849.1% compared to the same quarter last year. On average, research analysts forecast that Red Cat Holdings, Inc. will post -0.67 EPS for the current year.

Insider Transactions at Red Cat

In related news, Director Paul Funk II sold 165,028 shares of the stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $11.50, for a total transaction of $1,897,822.00. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 12.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Red Cat

Institutional investors have recently made changes to their positions in the company. Tudor Investment Corp ET AL increased its holdings in shares of Red Cat by 214.0% in the 3rd quarter. Tudor Investment Corp ET AL now owns 1,277,523 shares of the company's stock worth $13,222,000 after purchasing an additional 870,612 shares in the last quarter. EVR Research LP bought a new position in shares of Red Cat during the fourth quarter valued at $1,705,000. Caitong International Asset Management Co. Ltd lifted its holdings in shares of Red Cat by 1,825.1% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 54,152 shares of the company's stock valued at $429,000 after purchasing an additional 51,339 shares in the last quarter. Vanguard Group Inc. boosted its position in shares of Red Cat by 9.0% during the fourth quarter. Vanguard Group Inc. now owns 6,000,037 shares of the company's stock valued at $47,580,000 after buying an additional 493,660 shares during the last quarter. Finally, UBS Group AG boosted its position in shares of Red Cat by 37.7% during the fourth quarter. UBS Group AG now owns 580,099 shares of the company's stock valued at $4,600,000 after buying an additional 158,864 shares during the last quarter. Hedge funds and other 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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