Red Cat (NASDAQ:RCAT) Shares Down 4.1% - What's Next?

Key Points

• Red Cat Holdings' stock (NASDAQ:RCAT) dropped 4.1% to $9.00, with trading volume down 68% from its average.
• Analysts have set a new target price of $16.00 for Red Cat, with ratings that include one Strong Buy and one Buy.
• Insider activity has seen significant selling, with directors reducing their holdings by 20.52% and 12.96% following recent transactions.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s stock price traded down 4.1% on Wednesday . The stock traded as low as $8.93 and last traded at $9.00. 2,465,013 shares traded hands during trading, a decline of 68% from the average session volume of 7,598,393 shares. The stock had previously closed at $9.39.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on RCAT shares. Wall Street Zen upgraded Red Cat from a "sell" rating to a "hold" rating in a research report on Saturday, July 26th. Northland Securities set a $16.00 price objective on Red Cat in a research report on Friday, August 15th. One investment analyst has rated the stock with a Strong Buy rating and one has issued a Buy rating to the company's stock. Based on data from MarketBeat.com, Red Cat presently has an average rating of "Strong Buy" and an average target price of $16.00.

Red Cat Stock Performance

The firm has a fifty day moving average price of $8.66 and a 200 day moving average price of $7.26. The company has a market cap of $888.36 million, a price-to-earnings ratio of -16.45 and a beta of 1.44.

Insider Activity at Red Cat

In related news, Director Nicholas Reyland Liuzza, Jr. sold 100,000 shares of the 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 sale, the director owned 387,445 shares in the company, valued at approximately $3,324,278.10. This represents a 20.52% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Christopher R. Moe sold 16,833 shares of the stock in a transaction on Thursday, August 21st. The shares were sold at an average price of $9.58, for a total value of $161,260.14. Following the completion of the sale, the director owned 113,073 shares in the company, valued at approximately $1,083,239.34. This trade represents a 12.96% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 276,833 shares of company stock worth $2,214,060. Company insiders own 15.30% of the company's stock.

Institutional Investors Weigh In On Red Cat

Large investors have recently added to or reduced their stakes in the business. Bank of America Corp DE raised 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 valued at $44,000 after acquiring an additional 2,727 shares during the period. California State Teachers Retirement System acquired a new position in Red Cat in the 2nd quarter valued at $34,000. Caitong International Asset Management Co. Ltd grew its holdings 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 buying an additional 6,023 shares in the last quarter. BNP Paribas Financial Markets grew its holdings in Red Cat by 1,537.2% in 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 in the last quarter. Finally, Ameritas Investment Partners Inc. acquired a new position in Red Cat in the 2nd 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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