Red Cat (NASDAQ:RCAT) Sets New 12-Month Low – Here’s What Happened

by · The Markets Daily

Red Cat Holdings, Inc. (NASDAQ:RCAT – Get Free Report)’s stock price hit a new 52-week low during mid-day trading on Wednesday. The company traded as low as $3.95 and last traded at $4.0950, with a volume of 4,185,886 shares trading hands. The stock had previously closed at $4.46.

Wall Street Analyst Weigh In

RCAT has been the subject of several analyst reports. Zacks Research lowered shares of Red Cat from a “hold” rating to a “strong sell” rating in a report on Monday, October 12th. HC Wainwright reaffirmed a “buy” rating and set a $20.00 price target on shares of Red Cat in a report on Friday, August 7th. Northland Securities set a $13.00 price target on shares of Red Cat in a research report on Thursday, September 17th. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a research note on Thursday, October 15th. Finally, Needham & Company LLC restated a “buy” rating and set a $15.00 price objective on shares of Red Cat in a research report on Tuesday, October 20th. Two equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $16.29.

Read Our Latest Stock Report on RCAT

Red Cat Price Performance

The firm has a 50-day moving average of $6.27 and a 200-day moving average of $10.33. The stock has a market cap of $495.88 million, a PE ratio of -4.99 and a beta of 1.72.

Red Cat (NASDAQ:RCAT – Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.21) by ($0.05). Red Cat had a negative net margin of 136.26% and a negative return on equity of 32.25%. The business had revenue of $20.20 million for the quarter, compared to the consensus estimate of $22.65 million. Equities analysts forecast that Red Cat Holdings, Inc. will post -0.79 EPS for the current fiscal year.

Insider Buying and Selling at Red Cat

In other news, Director Christopher Moe sold 20,000 shares of Red Cat stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total transaction of $210,200.00. Following the sale, the director owned 200,502 shares in the company, valued at $2,107,276.02. This trade represents a 9.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Jeffrey Thompson sold 150,000 shares of the business’s stock in a transaction on Thursday, October 15th. The stock was sold at an average price of $4.51, for a total transaction of $676,500.00. Following the completion of the transaction, the chief executive officer directly owned 11,562,202 shares in the company, valued at $52,145,531.02. This trade represents a 1.28% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 375,000 shares of company stock valued at $2,632,350 in the last three months. 12.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Red Cat

A number of institutional investors and hedge funds have recently bought and sold shares of RCAT. Allworth Financial LP bought a new stake in shares of Red Cat in the second quarter worth about $28,000. Sterling Capital Management LLC lifted its position in shares of Red Cat by 1,063.9% in the third quarter. Sterling Capital Management LLC now owns 4,551 shares of the company’s stock worth $29,000 after buying an additional 4,160 shares in the last quarter. Parallel Advisors LLC lifted its position in shares of Red Cat by 6,168.8% in the third quarter. Parallel Advisors LLC now owns 4,827 shares of the company’s stock worth $31,000 after buying an additional 4,750 shares in the last quarter. Fifth Third Bancorp bought a new position in Red Cat during the first quarter valued at approximately $33,000. Finally, NFSG Corp boosted its stake in Red Cat by 200.0% during the first quarter. NFSG Corp now owns 3,000 shares of the company’s stock valued at $39,000 after buying an additional 2,000 shares during the last quarter. 37.97% of the stock is currently owned by institutional investors.

About Red Cat

(Get Free Report)

Red Cat Holdings, Inc is a drone technology company that develops and provides unmanned aircraft systems, software, and related services for defense, public safety, and commercial applications. Its solutions are designed to support intelligence, surveillance, reconnaissance, and situational-awareness missions in demanding operating environments.

Through its Teal Drones subsidiary, Red Cat offers small unmanned aircraft systems such as the Teal 2, a compact drone designed for nighttime operations and short-range reconnaissance.

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