Red Cat (NASDAQ:RCAT) Shares Gap Down - Time to Sell?

Key Points

• Red Cat Holdings, Inc. (NASDAQ:RCAT) experienced a significant gap down in share price, opening at $8.70 after closing at $9.37.
• Analysts have mixed expectations; Northland Securities set a price target of $15.00 while Wall Street Zen upgraded the stock from a "sell" to a "hold" rating.
• Insider trading activity includes Director Joseph David Freedman selling 150,000 shares at an average price of $7.37, decreasing his position by 47.58%.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s stock price gapped down before the market opened on Friday . The stock had previously closed at $9.37, but opened at $8.70. Red Cat shares last traded at $8.40, with a volume of 4,659,262 shares.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the stock. Wall Street Zen upgraded shares of Red Cat from a "sell" rating to a "hold" rating in a report on Saturday, July 26th. Northland Securities set a $16.00 price target on shares of Red Cat in a research report on Friday.

Red Cat Trading Up 7.3%

The company's fifty day moving average is $8.52 and its 200 day moving average is $7.26. The company has a market capitalization of $829.75 million, a P/E ratio of -16.58 and a beta of 1.44.

Insiders Place Their Bets

In related news, Director Nicholas Reyland Liuzza, Jr. sold 100,309 shares of the business's stock in a transaction dated Wednesday, May 21st. The shares were sold at an average price of $6.70, for a total transaction of $672,070.30. Following the sale, the director owned 387,445 shares of the company's stock, valued at $2,595,881.50. The trade was a 20.57% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at 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 stock was sold at an average price of $7.37, for a total transaction of $1,105,500.00. Following the completion of the transaction, the director owned 165,260 shares in the company, valued at approximately $1,217,966.20. This represents a 47.58% decrease in their position. The disclosure for this sale can be found here. In the last quarter, 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. California State Teachers Retirement System bought a new position in shares of Red Cat in the second quarter worth approximately $34,000. Caitong International Asset Management Co. Ltd boosted its position in shares of Red Cat by 28,681.0% during the second 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 last quarter. Bank of America Corp DE boosted its position in shares of Red Cat by 407.0% during the fourth 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 last quarter. BNP Paribas Financial Markets boosted its position in shares of Red Cat by 1,537.2% during the second quarter. BNP Paribas Financial Markets now owns 7,220 shares of the company's stock worth $53,000 after acquiring an additional 6,779 shares during the last quarter. Finally, SBI Securities Co. Ltd. boosted its position in shares of Red Cat by 104.4% during the first quarter. SBI Securities Co. Ltd. now owns 9,467 shares of the company's stock worth $56,000 after acquiring an additional 4,835 shares during the last quarter. 37.97% of the stock is 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.