Red Cat (NASDAQ:RCAT) Shares Down 6.3% - Here's Why

Key Points

• Red Cat Holdings, Inc. shares declined by 6.3%, reaching a low of $8.22, with trading volume significantly down by 66% from average levels.
• Analysts maintain a consensus "Strong Buy" rating, with a target price set at $16.00, despite the recent drop in share price.
• Insiders have decreased their holdings, with notable sales including 100,000 shares by Director Nicholas Reyland Liuzza, Jr., reflecting a 20.52% reduction in ownership.

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) traded down 6.3% during trading on Wednesday . The stock traded as low as $8.22 and last traded at $8.45. 2,559,598 shares were traded during mid-day trading, a decline of 66% from the average session volume of 7,615,801 shares. The stock had previously closed at $9.01.

Analysts Set New Price Targets

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

Red Cat Price Performance

The stock has a market cap of $871.44 million, a P/E ratio of -16.08 and a beta of 1.44. The firm's 50-day moving average price is $8.54 and its 200-day moving average price is $7.27.

Insider Buying and Selling at Red Cat

In other news, Director Nicholas Reyland Liuzza, Jr. sold 100,000 shares of the business's stock in a transaction 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 directly owned 387,445 shares of the company's stock, valued at approximately $3,324,278.10. The trade was a 20.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Joseph David Freedman sold 150,000 shares of the company's 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 transaction, 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 position. The disclosure for this sale can be found here. Insiders own 15.30% of the company's stock.

Institutional Investors Weigh In On Red Cat

Several hedge funds have recently bought and sold shares of RCAT. California State Teachers Retirement System purchased a new position in shares of Red Cat during the 2nd quarter valued at approximately $34,000. Caitong International Asset Management Co. Ltd lifted its position in shares of 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 valued at $44,000 after buying an additional 6,023 shares in the last quarter. Bank of America Corp DE lifted its position in shares of Red Cat by 407.0% during the 4th quarter. Bank of America Corp DE now owns 3,397 shares of the company's stock valued at $44,000 after buying an additional 2,727 shares in the last quarter. BNP Paribas Financial Markets lifted its position 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 in the last quarter. Finally, SBI Securities Co. Ltd. lifted its position in shares of Red Cat by 104.4% during the 1st quarter. SBI Securities Co. Ltd. now owns 9,467 shares of the company's stock valued at $56,000 after buying an additional 4,835 shares in the last quarter. 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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