Red Cat (NASDAQ:RCAT) Shares Gap Down on Analyst Downgrade

Red Cat Holdings, Inc. (NASDAQ:RCAT) gapped down before the market opened on Friday after Needham & Company LLC lowered their price target on the stock from $17.00 to $12.00. The stock had previously closed at $7.74, but opened at $6.75. Needham & Company LLC currently has a buy rating on the stock. Red Cat shares last traded at $7.3950, with a volume of 9,157,853 shares.

A number of other equities analysts also recently weighed in on RCAT. Northland Securities set a $16.00 price target on Red Cat in a research report on Friday, August 15th. Wall Street Zen cut shares of Red Cat from a “hold” rating to a “sell” rating in a report on Saturday, October 4th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research note on Wednesday, October 8th. Finally, LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a research report on Thursday, October 2nd. Two analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Red Cat currently has an average rating of “Buy” and a consensus price target of $14.00.

Insiders Place Their Bets

In other Red Cat news, Director Christopher R. Moe sold 30,000 shares of the company’s stock in a transaction on Thursday, September 11th. The shares were sold at an average price of $10.11, for a total transaction of $303,300.00. Following the sale, the director directly owned 73,073 shares of the company’s stock, valued at approximately $738,768.03. This represents a 29.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders have sold 86,833 shares of company stock worth $861,560 in the last 90 days. 15.30% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of RCAT. Bank of America Corp DE increased its stake in shares of 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. SBI Securities Co. Ltd. boosted its stake in Red Cat by 104.4% in the first quarter. SBI Securities Co. Ltd. now owns 9,467 shares of the company’s stock valued at $56,000 after buying an additional 4,835 shares in the last quarter. XTX Topco Ltd acquired a new stake in Red Cat in the first quarter valued at about $229,000. Baader Bank Aktiengesellschaft bought a new position in Red Cat in the first quarter valued at about $89,000. Finally, Moors & Cabot Inc. raised its stake in Red Cat by 293.0% during the first quarter. Moors & Cabot Inc. now owns 169,600 shares of the company’s stock worth $997,000 after acquiring an additional 126,450 shares in the last quarter. 37.97% of the stock is currently owned by institutional investors and hedge funds.

Red Cat Stock Down 7.5%

The stock has a market cap of $844.95 million, a price-to-earnings ratio of -15.57 and a beta of 1.45. The company has a 50 day simple moving average of $10.99 and a 200 day simple moving average of $9.00.

Red Cat (NASDAQ:RCAT) last posted 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 for the quarter, compared to the consensus estimate of $8.18 million. Red Cat has set its Q4 2025 guidance at EPS. FY 2025 guidance at EPS. As a group, analysts predict that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Red Cat Company Profile

Red Cat Holdings, Inc engages in the provision of various products, services, and solutions to the drone industry. The company operates through two segments: Enterprise and Consumer. It built infrastructure to manages drone fleets and fly, and provide services remotely, navigate confined industrial interior spaces and dangerous military environment.