Red Cat (NASDAQ:RCAT) Shares Gap Up - Should You Buy?

Key Points

• Red Cat Holdings, Inc. (NASDAQ:RCAT) experienced a significant share price increase, opening at $10.71 after closing at $10.14, and last traded at $10.97 with over 2 million shares exchanged.
• A variety of analyst ratings have been issued for Red Cat, including a downgrade to "sell" by Wall Street Zen and a "buy" recommendation from Needham & Company with a target price of $17.00, leading to an average rating of "Buy" with a target price of $16.50.
• Insider trading included a substantial sale by Director Christopher R. Moe, who sold 30,000 shares, resulting in a significant decrease in their ownership of the stock, which is indicative of changing insider sentiment.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s share price gapped up before the market opened on Friday . The stock had previously closed at $10.14, but opened at $10.71. Red Cat shares last traded at $10.97, with a volume of 2,037,185 shares traded.

Analyst Ratings Changes

A number of analysts have recently weighed in on RCAT shares. Wall Street Zen lowered Red Cat from a "hold" rating to a "sell" rating in a research report on Saturday, October 4th. Needham & Company LLC started coverage on Red Cat in a research report on Friday, October 3rd. They set a "buy" rating and a $17.00 price objective on the stock. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Red Cat in a research report on Wednesday, October 8th. LADENBURG THALM/SH SH raised Red Cat to a "strong-buy" rating in a research report on Thursday, October 2nd. Finally, Northland Securities set a $16.00 price objective on Red Cat in a research report on Friday, August 15th. Two research analysts have rated the stock with a Strong Buy rating, two have given a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Red Cat presently has an average rating of "Buy" and an average target price of $16.50.

Red Cat Stock Up 9.8%

The firm has a fifty day simple moving average of $10.79 and a 200-day simple moving average of $8.54. The company has a market cap of $1.31 billion, a PE ratio of -20.62 and a beta of 1.45.

Insider Activity

In other Red Cat news, Director Christopher R. Moe sold 30,000 shares of the firm's stock in a transaction dated Thursday, September 11th. The stock was sold at an average price of $10.11, for a total transaction of $303,300.00. Following the transaction, the director owned 73,073 shares of the company's stock, valued at approximately $738,768.03. This trade represents a 29.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders sold a total of 86,833 shares of company stock worth $861,560 over the last 90 days. Company insiders own 15.30% of the company's stock.

Hedge Funds Weigh In On Red Cat

Several hedge funds have recently made changes to their positions in RCAT. VestGen Advisors LLC grew its holdings in shares of Red Cat by 4.9% during the second quarter. VestGen Advisors LLC now owns 23,625 shares of the company's stock worth $172,000 after buying an additional 1,097 shares during the last quarter. Toth Financial Advisory Corp grew its holdings in shares of Red Cat by 7.2% during the third quarter. Toth Financial Advisory Corp now owns 29,800 shares of the company's stock worth $308,000 after buying an additional 2,000 shares during the last quarter. Bank of America Corp DE grew its holdings 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 buying an additional 2,727 shares during the last quarter. Western Wealth Management LLC grew its holdings in shares of Red Cat by 12.8% during the second quarter. Western Wealth Management LLC now owns 26,500 shares of the company's stock worth $193,000 after buying an additional 3,000 shares during the last quarter. Finally, Financial Advocates Investment Management grew its holdings in shares of Red Cat by 29.0% during the second quarter. Financial Advocates Investment Management now owns 13,555 shares of the company's stock worth $99,000 after buying an additional 3,046 shares during the last quarter. Hedge funds and other 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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