Red Cat (NASDAQ:RCAT) Stock Price Down 1.2% - Here's What Happened

Key Points

• Red Cat Holdings, Inc. shares fell by 1.2%, closing at $9.37 with a total trading volume significantly lower than the average.
• Analysts at Wall Street Zen upgraded the stock from a "sell" to a "hold" rating, while Northland Securities set a price target of $15.00 for the shares.
• Recent insider selling includes a director who sold 150,000 shares, representing a 47.58% decrease in their ownership.

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) dropped 1.2% during trading on Thursday . The stock traded as low as $9.29 and last traded at $9.37. Approximately 3,205,661 shares traded hands during mid-day trading, a decline of 58% from the average daily volume of 7,594,997 shares. The stock had previously closed at $9.48.

Analyst Ratings Changes

RCAT has been the topic of several research reports. Northland Securities set a $15.00 price objective on shares of Red Cat in a research report on Tuesday, August 5th. Wall Street Zen raised shares of Red Cat from a "sell" rating to a "hold" rating in a research report on Saturday, July 26th.

Red Cat Price Performance

The firm has a market cap of $858.17 million, a P/E ratio of -17.28 and a beta of 1.44. The firm's 50-day simple moving average is $8.34 and its 200 day simple moving average is $7.24.

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

Insider Activity at Red Cat

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

Institutional Trading of Red Cat

Several hedge funds and other institutional investors have recently modified their holdings of RCAT. LPL Financial LLC raised its position in shares of Red Cat by 497.2% in the fourth quarter. LPL Financial LLC now owns 74,008 shares of the company's stock valued at $951,000 after purchasing an additional 61,615 shares during the period. Vanguard Group Inc. raised its position in shares of Red Cat by 9.0% in the fourth quarter. Vanguard Group Inc. now owns 2,505,613 shares of the company's stock valued at $32,197,000 after purchasing an additional 207,727 shares during the period. Arrowstreet Capital Limited Partnership purchased a new position in Red Cat during the fourth quarter valued at approximately $1,368,000. Geode Capital Management LLC grew its stake in Red Cat by 1.8% during the fourth quarter. Geode Capital Management LLC now owns 602,596 shares of the company's stock valued at $7,747,000 after acquiring an additional 10,594 shares in the last quarter. Finally, Wells Fargo & Company MN grew its stake in Red Cat by 446.5% during the fourth quarter. Wells Fargo & Company MN now owns 10,465 shares of the company's stock valued at $134,000 after acquiring an additional 8,550 shares in the last quarter. 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.