Red Cat (NASDAQ:RCAT) Stock Price Down 4.6% - Should You Sell?

Key Points

• Red Cat Holdings, Inc. (NASDAQ:RCAT) experienced a stock price decline of 4.6%, trading at $13.99 after falling from a previous close of $14.66.
• Analysts are divided on the stock, with ratings ranging from a "strong-buy" from Needham & Company to a "sell" from Wall Street Zen, resulting in an average rating of "Buy" and a consensus price target of $16.50.
• Recent insider activity includes 30,000 shares sold by Director Christopher R. Moe, which reduced his stake by 29.11%, while institutional investors have significantly increased their holdings in the company.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s stock price traded down 4.6% during mid-day trading on Friday . The stock traded as low as $13.76 and last traded at $13.99. 4,583,904 shares traded hands during trading, a decline of 46% from the average session volume of 8,544,382 shares. The stock had previously closed at $14.66.

Wall Street Analyst Weigh In

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

Red Cat Trading Down 6.1%

The firm has a market cap of $1.62 billion, a price-to-earnings ratio of -25.00 and a beta of 1.45. The firm has a 50 day moving average price of $10.13 and a 200-day moving average price of $8.10.

Insider Buying and Selling at Red Cat

In other news, Director Christopher R. Moe sold 30,000 shares of the business's stock in a transaction on Thursday, September 11th. The stock was sold at an average price of $10.11, for a total value of $303,300.00. Following the completion of the transaction, the director directly owned 73,073 shares of the company's stock, valued at $738,768.03. The trade was a 29.11% 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. Insiders sold 86,833 shares of company stock valued at $861,560 over the last ninety days. Insiders own 15.30% of the company's stock.

Hedge Funds Weigh In On Red Cat

A number of institutional investors have recently modified their holdings of the company. Geode Capital Management LLC raised its holdings in Red Cat by 142.7% in the 2nd quarter. Geode Capital Management LLC now owns 1,656,720 shares of the company's stock valued at $12,063,000 after acquiring an additional 974,121 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Red Cat by 125.5% during the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 517,061 shares of the company's stock valued at $3,764,000 after acquiring an additional 287,802 shares during the last quarter. AWM Investment Company Inc. increased its position in Red Cat by 15.3% during the second quarter. AWM Investment Company Inc. now owns 2,037,616 shares of the company's stock worth $14,834,000 after purchasing an additional 269,942 shares during the last quarter. GW Henssler & Associates Ltd. acquired a new position in Red Cat during the first quarter worth approximately $1,297,000. Finally, XTX Topco Ltd increased its position in Red Cat by 510.9% during the second quarter. XTX Topco Ltd now owns 237,927 shares of the company's stock worth $1,732,000 after purchasing an additional 198,982 shares during the last quarter. Institutional investors and hedge funds 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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