Red Cat (NASDAQ:RCAT) Shares Up 4.2% - Should You Buy?

Key Points

• Red Cat Holdings, Inc. (NASDAQ:RCAT) experienced a stock price increase of 4.2%, closing at $10.46 after reaching a high of $10.62, with trading volume rising significantly by 121%.
• Analysts have set a consensus target price of $16.00 for Red Cat, with ratings showing one Strong Buy and one Buy, indicating positive sentiment among evaluators.
• Recent insider trading activity included significant share sales by directors, with a total of 226,833 shares sold in the last quarter, reflecting a combined value of approximately $1.86 million.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) shot up 4.2% during trading on Friday . The stock traded as high as $10.62 and last traded at $10.46. 17,251,550 shares changed hands during trading, an increase of 121% from the average session volume of 7,794,689 shares. The stock had previously closed at $10.04.

Wall Street Analysts Forecast Growth

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

Red Cat Trading Up 4.2%

The company has a market cap of $1.05 billion, a PE ratio of -19.37 and a beta of 1.44. The firm's fifty day moving average is $9.51 and its 200 day moving average is $7.46.

Insider Transactions at Red Cat

In other news, Director Christopher R. Moe sold 10,000 shares of the stock in a transaction dated 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 directly owned 63,073 shares in the company, valued at $691,280.08. This represents a 13.68% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Joseph David Freedman sold 150,000 shares of the stock in a transaction dated 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 sale, the director owned 165,260 shares of the company's stock, valued at $1,217,966.20. This trade represents a 47.58% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 226,833 shares of company stock valued at $1,857,960 over the last quarter. Company insiders own 15.30% of the company's stock.

Institutional Investors Weigh In On Red Cat

Hedge funds have recently modified their holdings of the business. Marex Group plc acquired a new position in Red Cat in the second quarter valued at about $333,000. Captrust Financial Advisors lifted its position in shares of Red Cat by 30.9% during the second 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 in the last quarter. Tidal Investments LLC lifted its position in shares of Red Cat by 64.1% during the second quarter. Tidal Investments LLC now owns 34,916 shares of the company's stock worth $254,000 after purchasing an additional 13,643 shares in the last quarter. Riggs Asset Managment Co. Inc. acquired a new stake in shares of Red Cat during the second quarter worth about $62,000. Finally, Oxford Asset Management LLP acquired a new stake in shares of Red Cat during the second quarter worth about $262,000. 37.97% of the stock is currently 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.