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

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) shares gapped down prior to trading 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 trading hands.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on RCAT shares. Northland Securities set a $16.00 price target on Red Cat in a report on Friday, August 15th. Wall Street Zen raised Red Cat from a "sell" rating to a "hold" rating in a report on Saturday, July 26th. One analyst has rated the stock with a Strong Buy rating and one has given a Buy rating to the stock. Based on data from MarketBeat, Red Cat presently has a consensus rating of "Strong Buy" and an average target price of $16.00.

Red Cat Price Performance

The business has a fifty day moving average of $9.09 and a 200 day moving average of $7.27. The stock has a market cap of $1.08 billion, a PE ratio of -19.92 and a beta of 1.44.

Insider Buying and Selling

In other Red Cat news, Director Christopher R. Moe sold 16,833 shares of the stock in a transaction that occurred on Thursday, August 21st. The stock was sold at an average price of $9.58, for a total transaction of $161,260.14. Following the transaction, the director owned 113,073 shares of the company's stock, valued at $1,083,239.34. This trade represents a 12.96% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Joseph David Freedman sold 150,000 shares of the stock in a transaction that occurred on 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 transaction, the director directly 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 ninety days, insiders have sold 176,833 shares of company stock worth $1,356,060. 15.30% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the company. Marex Group plc bought a new position in Red Cat during the 2nd quarter worth approximately $333,000. Captrust Financial Advisors lifted its holdings in shares of Red Cat by 30.9% in the 2nd quarter. Captrust Financial Advisors now owns 820,279 shares of the company's stock worth $5,972,000 after purchasing an additional 193,853 shares during the last quarter. Tidal Investments LLC lifted its holdings in shares of Red Cat by 64.1% in the 2nd quarter. Tidal Investments LLC now owns 34,916 shares of the company's stock worth $254,000 after purchasing an additional 13,643 shares during the last quarter. Riggs Asset Managment Co. Inc. bought a new stake in shares of Red Cat in the 2nd quarter worth approximately $62,000. Finally, Oxford Asset Management LLP bought a new stake in shares of Red Cat in the 2nd quarter worth approximately $262,000. 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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