Red Cat (NASDAQ:RCAT) Shares Up 1.9% - Still a Buy?

Key Points

• Red Cat Holdings (NASDAQ:RCAT) shares increased by 1.9%, trading at $9.92 after yesterday's close at $9.74, but with a notable decline in trading volume to 2,181,080 shares.
• Analysts have upgraded the stock's rating from "sell" to "hold," with a consensus target price set at $16.00, indicating potential upward movement.
• Recent insider selling activities included significant transactions by directors, with one director selling 100,000 shares and another selling 150,000 shares, reducing their respective ownership stakes.

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) shot up 1.9% during trading on Friday . The stock traded as high as $10.06 and last traded at $9.92. 2,181,080 shares traded hands during trading, a decline of 71% from the average session volume of 7,608,918 shares. The stock had previously closed at $9.74.

Analysts Set New Price Targets

RCAT has been the subject of several research analyst reports. Wall Street Zen upgraded shares of Red Cat from a "sell" rating to a "hold" rating in a research report on Saturday, July 26th. Northland Securities set a $16.00 price target on shares of Red Cat in a research note on Friday, August 15th. One equities research analyst has rated the stock with a Strong Buy rating and one has assigned a Buy rating to the company. According to MarketBeat, Red Cat has an average rating of "Strong Buy" and a consensus target price of $16.00.

Red Cat Stock Performance

The firm's 50-day moving average price is $8.57 and its 200 day moving average price is $7.29. The company has a market cap of $979.64 million, a price-to-earnings ratio of -18.19 and a beta of 1.44.

Insider Buying and Selling

In related news, Director Nicholas Reyland Liuzza, Jr. sold 100,000 shares of the business's stock in a transaction that occurred 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 transaction, the director owned 387,445 shares in the company, 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 Red Cat stock in a transaction that occurred on 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 completion of the transaction, the director directly owned 165,260 shares in the company, valued at approximately $1,217,966.20. The trade was a 47.58% decrease in their position. The disclosure for this sale can be found here. 15.30% of the stock is currently owned by insiders.

Institutional Trading of Red Cat

A number of institutional investors have recently made changes to their positions in RCAT. California State Teachers Retirement System bought a new stake in Red Cat during the second quarter worth $34,000. Bank of America Corp DE increased its holdings in shares of Red Cat by 407.0% in the fourth quarter. Bank of America Corp DE now owns 3,397 shares of the company's stock valued at $44,000 after purchasing an additional 2,727 shares during the last quarter. Caitong International Asset Management Co. Ltd increased its holdings in shares of Red Cat by 28,681.0% in the second quarter. Caitong International Asset Management Co. Ltd now owns 6,044 shares of the company's stock valued at $44,000 after purchasing an additional 6,023 shares during the last quarter. BNP Paribas Financial Markets increased its holdings in shares of Red Cat by 1,537.2% in the second quarter. BNP Paribas Financial Markets now owns 7,220 shares of the company's stock valued at $53,000 after purchasing an additional 6,779 shares during the last quarter. Finally, SBI Securities Co. Ltd. increased its holdings in shares of Red Cat by 104.4% in the first quarter. SBI Securities Co. Ltd. now owns 9,467 shares of the company's stock valued at $56,000 after purchasing an additional 4,835 shares during the last quarter. 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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