Red Cat (NASDAQ:RCAT) Shares Down 10.6% - Should You Sell?

Key Points

• Red Cat Holdings, Inc. (NASDAQ:RCAT) shares dropped 10.6% on Friday, hitting a low of $7.90 before closing at $8.38, along with a significant increase in trading volume.
• Analysts have recently upgraded Red Cat from a "sell" to a "hold" rating, with Northland Securities setting a new price target of $15.00.
• Insider transactions revealed that directors sold a combined total of 350,309 shares in the last three months, indicating a notable decrease in their ownership stake in the company.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s share price was down 10.6% during trading on Friday . The stock traded as low as $7.90 and last traded at $8.38. Approximately 11,172,069 shares were traded during mid-day trading, an increase of 47% from the average daily volume of 7,577,572 shares. The stock had previously closed at $9.37.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on RCAT. Wall Street Zen raised Red Cat from a "sell" rating to a "hold" rating in a research note on Saturday, July 26th. Northland Securities set a $15.00 price target on shares of Red Cat in a research note on Tuesday, August 5th.

Red Cat Trading Down 8.7%

The stock has a market capitalization of $786.89 million, a price-to-earnings ratio of -15.93 and a beta of 1.44. The firm's 50 day simple moving average is $8.52 and its 200-day simple moving average is $7.29.

Red Cat (NASDAQ:RCAT - Get Free Report) last announced its quarterly earnings results on Wednesday, May 14th. The company reported ($0.27) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.10) by ($0.17). As a group, equities research analysts predict that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Insider Transactions at Red Cat

In other Red Cat news, Director Nicholas Reyland Liuzza, Jr. sold 100,000 shares of Red Cat stock in a transaction on Tuesday, June 10th. The stock was sold at an average price of $8.58, for a total value of $858,000.00. Following the completion of the transaction, the director directly owned 387,445 shares of the company's stock, valued at $3,324,278.10. The trade was a 20.52% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Joseph David Freedman sold 150,000 shares of the firm's stock in a transaction dated Monday, June 30th. The shares were sold at an average price of $7.37, for a total transaction of $1,105,500.00. Following the completion of the transaction, the director directly owned 165,260 shares in the company, valued at approximately $1,217,966.20. This represents a 47.58% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 350,309 shares of company stock valued at $2,635,570 in the last three months. Insiders own 15.30% of the company's stock.

Institutional Investors Weigh In On Red Cat

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Bank of America Corp DE raised its holdings in 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 buying an additional 2,727 shares during the last quarter. California State Teachers Retirement System bought a new stake in Red Cat during the 2nd quarter worth approximately $34,000. Caitong International Asset Management Co. Ltd increased its position in Red Cat by 28,681.0% in the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 6,044 shares of the company's stock valued at $44,000 after acquiring an additional 6,023 shares during the period. BNP Paribas Financial Markets raised its stake in shares of Red Cat by 1,537.2% during the second quarter. BNP Paribas Financial Markets now owns 7,220 shares of the company's stock valued at $53,000 after acquiring an additional 6,779 shares during the last quarter. Finally, Ameritas Investment Partners Inc. bought a new position in shares of Red Cat during the second quarter valued at $56,000. Institutional investors own 37.97% of the company's stock.

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.

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