Red Cat (NASDAQ:RCAT) Shares Down 2.9% - Here's What Happened

Key Points

• Red Cat Holdings, Inc. shares fell 2.9% to $9.19, with trading volume significantly down by 69% from average levels.
• Analysts at Wall Street Zen upgraded Red Cat's rating from "sell" to "hold" in a recent research report.
• Insider sales have occurred, with directors selling a combined total of over 350,000 shares in the last three months, indicating potential concerns about stock performance.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s stock price fell 2.9% on Monday . The company traded as low as $9.20 and last traded at $9.19. 2,367,922 shares traded hands during trading, a decline of 69% from the average session volume of 7,632,230 shares. The stock had previously closed at $9.46.

Wall Street Analyst Weigh In

Separately, Wall Street Zen raised Red Cat from a "sell" rating to a "hold" rating in a research report on Saturday.

Red Cat Trading Down 4.9%

The firm has a fifty day simple moving average of $7.86 and a two-hundred day simple moving average of $7.27. The stock has a market cap of $827.08 million, a PE ratio of -16.66 and a beta of 1.43.

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). Equities analysts forecast that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Insider Activity

In related news, Director Nicholas Reyland Liuzza, Jr. sold 100,000 shares of the stock in a transaction that occurred on Tuesday, June 10th. The stock was sold at an average price of $8.58, for a total transaction of $858,000.00. Following the completion of the transaction, 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Joseph David Freedman sold 150,000 shares of the company'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 value of $1,105,500.00. Following the sale, the director owned 165,260 shares in the company, valued at approximately $1,217,966.20. This trade represents a 47.58% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 350,309 shares of company stock valued at $2,635,570 in the last three months. 15.30% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Bank of America Corp DE increased 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 valued at $44,000 after acquiring an additional 2,727 shares during the period. SBI Securities Co. Ltd. increased its holdings in shares of Red Cat by 104.4% in the 1st quarter. SBI Securities Co. Ltd. now owns 9,467 shares of the company's stock valued at $56,000 after acquiring an additional 4,835 shares during the period. CIBC Private Wealth Group LLC purchased a new position in shares of Red Cat in the 4th quarter valued at $118,000. Summit Trail Advisors LLC purchased a new position in shares of Red Cat in the 1st quarter valued at $59,000. Finally, Wells Fargo & Company MN increased its holdings in shares of Red Cat by 446.5% in the 4th 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 during the period. 37.97% of the stock is currently owned by hedge funds and other institutional investors.

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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