Red Cat (NASDAQ:RCAT) Shares Down 1.7% - Here's Why

Key Points

• Red Cat Holdings, Inc. (NASDAQ:RCAT) shares experienced a decline of 1.7%, trading at approximately $8.43, with a significant drop in trading volume of 88% compared to its average.
• Analysts have upgraded Red Cat from a "sell" to a "hold" rating, with a consensus price target of $16.00, indicating potential upside for investors.
• Insider trading activity includes substantial sales by directors, with a total of 276,833 shares sold in the last ninety days, reflecting decreased positions in the company.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) shares were down 1.7% during trading on Thursday . The stock traded as low as $8.44 and last traded at $8.43. Approximately 920,568 shares were traded during trading, a decline of 88% from the average daily volume of 7,488,082 shares. The stock had previously closed at $8.57.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the company. Wall Street Zen upgraded Red Cat from a "sell" rating to a "hold" rating in a research note on Saturday, July 26th. Northland Securities set a $16.00 target price on Red Cat in a research note on Friday, August 15th. One research analyst has rated the stock with a Strong Buy rating and one has issued a Buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Strong Buy" and a consensus price target of $16.00.

Red Cat Trading Down 0.7%

The company has a market capitalization of $848.96 million, a price-to-earnings ratio of -15.76 and a beta of 1.44. The company has a fifty day moving average of $8.87 and a 200-day moving average of $7.24.

Insiders Place Their Bets

In other news, Director Christopher R. Moe sold 16,833 shares of Red Cat stock in a transaction that occurred on Thursday, August 21st. The shares were sold at an average price of $9.58, for a total transaction of $161,260.14. Following the sale, the director owned 113,073 shares of the company's stock, valued at approximately $1,083,239.34. The trade was a 12.96% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Nicholas Reyland Liuzza, Jr. sold 100,000 shares of Red Cat stock in a transaction that occurred on Tuesday, June 10th. The shares were sold at an average price of $8.58, for a total transaction of $858,000.00. Following the completion of the sale, the director owned 387,445 shares of the company's stock, valued at $3,324,278.10. This trade represents a 20.52% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 276,833 shares of company stock valued at $2,214,060 in the last ninety days. 15.30% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Red Cat

Hedge funds and other institutional investors have recently made changes to their positions in the stock. California State Teachers Retirement System purchased a new position in shares of Red Cat during the second quarter worth about $34,000. Caitong International Asset Management Co. Ltd grew its stake 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 worth $44,000 after acquiring an additional 6,023 shares during the period. Bank of America Corp DE grew its stake 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 worth $44,000 after acquiring an additional 2,727 shares during the period. BNP Paribas Financial Markets grew its stake in shares of Red Cat by 1,537.2% during the 2nd quarter. BNP Paribas Financial Markets now owns 7,220 shares of the company's stock valued at $53,000 after buying an additional 6,779 shares during the period. Finally, SBI Securities Co. Ltd. boosted 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 during the period. 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.

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