Red Cat (NASDAQ:RCAT) Trading Down 5.9% - Here's What Happened

Key Points

• Shares fell 5.9% to $11.80 on Friday with about 12.4 million shares traded, roughly 21% below the stock's average daily volume.
• Analysts are mixed—two Buys and one Sell—leaving a MarketBeat consensus of Hold and a consensus target price of $20.67 after several firms raised price targets to as high as $22.
• Red Cat reported Q1 EPS of ($0.17), missing estimates by $0.03 while revenue of $26.24 million beat expectations, though the company still has negative margins and a negative return on equity.

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) were down 5.9% on Friday . The company traded as low as $11.78 and last traded at $11.80. Approximately 12,416,832 shares were traded during mid-day trading, a decline of 21% from the average daily volume of 15,631,071 shares. The stock had previously closed at $12.54.

Analyst Ratings Changes

A number of research analysts recently weighed in on RCAT shares. Wall Street Zen upgraded shares of Red Cat from a "sell" rating to a "hold" rating in a report on Saturday, March 21st. LADENBURG THALM/SH SH lifted their price objective 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. Weiss Ratings restated a "sell (d-)" rating on shares of Red Cat in a report on Tuesday. Northland Securities set a $22.00 price objective on shares of Red Cat in a report on Tuesday, January 20th. Finally, Needham & Company LLC lifted their price objective on shares of Red Cat from $16.00 to $20.00 and gave the company a "buy" rating in a report on Thursday, March 19th. Two research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat, Red Cat currently has a consensus rating of "Hold" and a consensus target price of $20.67.

Red Cat Stock Down 5.9%

The business's fifty day moving average is $13.56 and its two-hundred day moving average is $11.65. The stock has a market cap of $1.43 billion, a price-to-earnings ratio of -15.73 and a beta of 1.46.

Red Cat (NASDAQ:RCAT - Get Free Report) last issued its quarterly earnings results on Wednesday, March 18th. The company reported ($0.17) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.14) by ($0.03). Red Cat had a negative return on equity of 38.86% and a negative net margin of 176.96%.The firm had revenue of $26.24 million during the quarter, compared to analysts' expectations of $24.50 million. As a group, sell-side analysts expect that Red Cat Holdings, Inc. will post -0.34 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Apollon Wealth Management LLC purchased a new position in Red Cat in the first quarter worth approximately $311,000. Pictet Asset Management Holding SA purchased a new position in Red Cat in the first quarter worth approximately $258,000. Silver Oak Securities Incorporated purchased a new position in Red Cat in the first quarter worth approximately $499,000. Kestra Private Wealth Services LLC purchased a new position in Red Cat in the first quarter worth approximately $141,000. Finally, SG Americas Securities LLC purchased a new position in Red Cat in the first quarter worth approximately $212,000. Hedge funds and other institutional investors own 37.97% of the company's stock.

About Red Cat

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.