Red Cat (NASDAQ:RCAT) Sees Unusually-High Trading Volume - Here's What Happened

Key Points

• Red Cat Holdings, Inc. (NASDAQ:RCAT) experienced a significant surge in trading volume, with approximately 10.98 million shares changing hands, marking a 40% increase from the prior session.
• The stock price rose to $12.65, up from a previous close of $11.32, after receiving positive analyst ratings including a price target of $16.00 from Northland Securities.
• Insider trading activity was notable, with directors selling a combined total of 226,833 shares in past months, indicating possible changes in insider sentiment about the company's stock performance.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) saw unusually-high trading volume on Tuesday . Approximately 10,982,642 shares changed hands during mid-day trading, an increase of 40% from the previous session's volume of 7,872,319 shares.The stock last traded at $12.65 and had previously closed at $11.32.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on RCAT shares. Northland Securities set a $16.00 price target on Red Cat in a report on Friday, August 15th. Wall Street Zen upgraded Red Cat from a "sell" rating to a "hold" rating in a research report on Saturday, July 26th. One analyst has rated the stock with a Strong Buy rating and one has assigned a Buy rating to the stock. According to data from MarketBeat.com, Red Cat presently has an average rating of "Strong Buy" and an average price target of $16.00.

Red Cat Trading Up 4.0%

The company has a market capitalization of $1.18 billion, a price-to-earnings ratio of -21.80 and a beta of 1.44. The firm's 50 day simple moving average is $9.53 and its 200-day simple moving average is $7.53.

Insiders Place Their Bets

In other news, Director Christopher R. Moe sold 30,000 shares of the company's stock in a transaction dated Thursday, September 11th. The stock was sold at an average price of $10.11, for a total value of $303,300.00. Following the completion of the sale, the director owned 73,073 shares of the company's stock, valued at $738,768.03. This represents a 29.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Joseph David Freedman sold 150,000 shares of the company's stock in a transaction dated Monday, June 30th. The stock was sold at an average price of $7.37, for a total value of $1,105,500.00. Following the completion of the sale, the director directly owned 165,260 shares of the company's stock, valued at $1,217,966.20. The trade was a 47.58% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 226,833 shares of company stock valued at $1,857,960. Insiders own 15.30% of the company's stock.

Institutional Trading of Red Cat

Hedge funds and other institutional investors have recently modified their holdings of the business. Bank of America Corp DE boosted its holdings 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 worth $44,000 after acquiring an additional 2,727 shares in the last quarter. Millennium Management LLC boosted its stake in Red Cat by 44.1% in the 4th quarter. Millennium Management LLC now owns 60,864 shares of the company's stock worth $782,000 after purchasing an additional 18,641 shares during the period. Tidal Investments LLC acquired a new position in shares of Red Cat during the 4th quarter worth about $270,000. Two Sigma Advisers LP bought a new stake in shares of Red Cat in the 4th quarter valued at about $362,000. Finally, Squarepoint Ops LLC raised its holdings in Red Cat by 23.0% in the 4th quarter. Squarepoint Ops LLC now owns 15,496 shares of the company's stock valued at $199,000 after acquiring an additional 2,902 shares during the period. Institutional investors and hedge funds own 37.97% of the company's stock.

About Red Cat

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.

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