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

Key Points

• Red Cat Holdings, Inc. (NASDAQ:RCAT) experienced a gap down in share price, opening at $10.55 after closing at $11.00, with the last traded price at $10.50.
• Analysts have a consensus rating of Strong Buy for Red Cat, with Northland Securities setting a price target of $16.00.
• Insider selling has occurred recently, with Director Christopher R. Moe selling 16,833 shares and Director Joseph David Freedman selling 150,000 shares, indicating significant changes in their stakes in the company.

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 $11.00, but opened at $10.55. Red Cat shares last traded at $10.50, with a volume of 3,361,398 shares traded.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on the stock. Wall Street Zen raised 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 target price on shares of Red Cat in a report on Friday, August 15th. One analyst has rated the stock with a Strong Buy rating and one has given a Buy rating to the company. According to MarketBeat.com, the stock has an average rating of "Strong Buy" and an average price target of $16.00.

Red Cat Price Performance

The firm has a market capitalization of $1.05 billion, a P/E ratio of -19.53 and a beta of 1.44. The firm has a 50-day moving average price of $9.24 and a two-hundred day moving average price of $7.34.

Insider Activity

In related news, Director Joseph David Freedman sold 150,000 shares of Red Cat stock in a transaction dated Monday, June 30th. The stock was sold at an average price of $7.37, for a total value of $1,105,500.00. Following the completion of the sale, the director directly owned 165,260 shares in the company, valued at $1,217,966.20. The trade was a 47.58% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Christopher R. Moe sold 10,000 shares of Red Cat stock in a transaction dated Friday, September 12th. The shares were sold at an average price of $10.96, for a total value of $109,600.00. Following the completion of the sale, the director owned 63,073 shares of the company's stock, valued at $691,280.08. The trade was a 13.68% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 226,833 shares of company stock valued at $1,857,960 over the last 90 days. 15.30% of the stock is currently owned by corporate insiders.

Institutional Trading of Red Cat

Several institutional investors and hedge funds have recently made changes to their positions in the company. VestGen Advisors LLC raised its holdings in shares of Red Cat by 4.9% in the second quarter. VestGen Advisors LLC now owns 23,625 shares of the company's stock valued at $172,000 after acquiring an additional 1,097 shares in the last quarter. Bank of America Corp DE raised its holdings in Red Cat by 407.0% in the fourth quarter. Bank of America Corp DE now owns 3,397 shares of the company's stock worth $44,000 after purchasing an additional 2,727 shares in the last quarter. Squarepoint Ops LLC raised its holdings in Red Cat by 23.0% in the fourth quarter. Squarepoint Ops LLC now owns 15,496 shares of the company's stock worth $199,000 after purchasing an additional 2,902 shares in the last quarter. Western Wealth Management LLC raised its holdings in Red Cat by 12.8% in the second quarter. Western Wealth Management LLC now owns 26,500 shares of the company's stock worth $193,000 after purchasing an additional 3,000 shares in the last quarter. Finally, Financial Advocates Investment Management raised its holdings in Red Cat by 29.0% in the second quarter. Financial Advocates Investment Management now owns 13,555 shares of the company's stock worth $99,000 after purchasing an additional 3,046 shares in the last quarter. 37.97% of the stock is currently owned by institutional investors.

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.