Red Cat (NASDAQ:RCAT) Trading Down 1.2% - Here's Why

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.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) dropped 1.2% on Thursday . The stock traded as low as $9.29 and last traded at $9.37. Approximately 3,205,661 shares traded hands during 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 subject of several recent research reports. Wall Street Zen raised Red Cat from a "sell" rating to a "hold" rating in a report on Saturday, July 26th. Northland Securities set a $15.00 price target on Red Cat in a report on Tuesday.

Red Cat Stock Performance

The company has a market capitalization of $858.17 million, a PE 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 $7.26.

Red Cat (NASDAQ:RCAT - Get Free Report) last issued its earnings results 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, equities analysts anticipate that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Insider Transactions at Red Cat

In related news, Director Nicholas Reyland Liuzza, Jr. sold 100,000 shares of the stock in a transaction dated 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 directly owned 387,445 shares of the company's stock, valued at approximately $3,324,278.10. This represents a 20.52% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Joseph David Freedman sold 150,000 shares of the 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 sale, the director directly owned 165,260 shares in the company, valued at approximately $1,217,966.20. The trade was a 47.58% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 350,309 shares of company stock worth $2,635,570. 15.30% of the stock is owned by corporate insiders.

Institutional Trading of Red Cat

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RCAT. Caitong International Asset Management Co. Ltd increased its position in Red Cat by 28,681.0% during the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 6,044 shares of the company's stock worth $44,000 after purchasing an additional 6,023 shares in the last quarter. Bank of America Corp DE increased its position in Red Cat by 407.0% during the 4th quarter. Bank of America Corp DE now owns 3,397 shares of the company's stock worth $44,000 after purchasing an additional 2,727 shares in the last quarter. SBI Securities Co. Ltd. increased its position in Red Cat by 104.4% during the 1st quarter. SBI Securities Co. Ltd. now owns 9,467 shares of the company's stock worth $56,000 after purchasing an additional 4,835 shares in the last quarter. Summit Trail Advisors LLC purchased a new stake in Red Cat in the 1st quarter valued at about $59,000. Finally, AlphaQuest LLC purchased a new stake in Red Cat in the 2nd quarter valued at about $67,000. Hedge funds and other institutional investors 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.