Red Cat (NASDAQ:RCAT) Stock Price Down 6.2% - Should You Sell?

Key Points

• Red Cat Holdings, Inc. (NASDAQ:RCAT) experienced a 6.2% decline in stock price, trading at $11.04 after previously closing at $11.77, with a significant drop in trading volume.
• Analysts have set a consensus target price of $16.00 for Red Cat, with ratings including a "Strong Buy" and an upgrade from "sell" to "hold".
• Insiders have recently sold over 226,000 shares of Red Cat stock, with some directors decreasing their ownership significantly, indicating potential concerns within the company.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s stock price fell 6.2% during mid-day trading on Wednesday . The company traded as low as $11.00 and last traded at $11.04. 4,302,928 shares changed hands during trading, a decline of 46% from the average session volume of 7,974,834 shares. The stock had previously closed at $11.77.

Analysts Set New Price Targets

Several research analysts have weighed in on the company. Wall Street Zen upgraded Red Cat from a "sell" rating to a "hold" rating in a research note on Saturday, July 26th. Northland Securities set a $16.00 target price on Red Cat in a research note on Friday, August 15th. One investment analyst has rated the stock with a Strong Buy rating and one has given a Buy rating to the company's stock. Based on data from MarketBeat, Red Cat has a consensus rating of "Strong Buy" and a consensus target price of $16.00.

Red Cat Price Performance

The stock has a market capitalization of $1.30 billion, a PE ratio of -20.51 and a beta of 1.44. The stock has a 50 day moving average of $9.56 and a two-hundred day moving average of $7.56.

Insider Buying and Selling

In related news, Director Joseph David Freedman sold 150,000 shares of Red Cat 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 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 filing with the Securities & Exchange Commission, which is available through this link. Also, Director Christopher R. Moe sold 10,000 shares of Red Cat stock in a transaction that occurred on 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 in the company, valued at approximately $691,280.08. This trade represents a 13.68% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 226,833 shares of company stock worth $1,857,960. Company insiders own 15.30% of the company's stock.

Hedge Funds Weigh In On Red Cat

Hedge funds and other institutional investors have recently bought and sold shares of the company. Goldman Sachs Group Inc. raised its holdings in Red Cat by 28.7% during the first quarter. Goldman Sachs Group Inc. now owns 266,099 shares of the company's stock worth $1,565,000 after purchasing an additional 59,334 shares during the last quarter. Toth Financial Advisory Corp acquired a new position in Red Cat during the second quarter worth $202,000. Integrated Wealth Concepts LLC raised its holdings in Red Cat by 66.0% during the first quarter. Integrated Wealth Concepts LLC now owns 195,225 shares of the company's stock worth $1,148,000 after purchasing an additional 77,630 shares during the last quarter. Invesco Ltd. raised its holdings in Red Cat by 309.8% during the first quarter. Invesco Ltd. now owns 96,134 shares of the company's stock worth $565,000 after purchasing an additional 72,678 shares during the last quarter. Finally, Tidal Investments LLC acquired a new position in Red Cat during the fourth quarter worth $270,000. 37.97% of the stock is owned by institutional investors and hedge funds.

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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