Red Cat (NASDAQ:RCAT) Stock Price Up 8% - Should You Buy?

Key Points

• Red Cat Holdings, Inc. (NASDAQ:RCAT) saw its stock price increase by 8% to $9.71 during mid-day trading, though trading volume was down by 60% compared to its average.
• Wall Street analysts have upgraded Red Cat from a "sell" to a "hold" rating, with a consensus price target of $16.00 and one analyst rating it a "Strong Buy."
• Recent insider trading showed significant sales, with Director Nicholas Reyland Liuzza, Jr. selling 100,000 shares, representing a 20.52% decrease in his position.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s stock price rose 8% during mid-day trading on Thursday . The company traded as high as $9.71 and last traded at $9.71. Approximately 3,028,827 shares were traded during mid-day trading, a decline of 60% from the average daily volume of 7,604,245 shares. The stock had previously closed at $8.99.

Wall Street Analyst Weigh In

RCAT has been the topic of a number of research analyst reports. Wall Street Zen raised Red Cat from a "sell" rating to a "hold" rating in a research note on Saturday, July 26th. Northland Securities set a $16.00 price objective on 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 data from MarketBeat, the company currently has an average rating of "Strong Buy" and a consensus price target of $16.00.

Red Cat Trading Up 4.9%

The firm has a market cap of $941.24 million, a PE ratio of -17.44 and a beta of 1.44. The business has a fifty day moving average price of $8.55 and a 200 day moving average price of $7.28.

Insider Buying and Selling

In related news, Director Nicholas Reyland Liuzza, Jr. sold 100,000 shares of the firm's stock in a transaction that occurred on Tuesday, June 10th. The stock was sold at an average price of $8.58, for a total transaction of $858,000.00. Following the transaction, the director owned 387,445 shares in the company, valued at $3,324,278.10. This trade represents a 20.52% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Joseph David Freedman sold 150,000 shares of the 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 of the company's stock, valued at $1,217,966.20. The trade was a 47.58% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 15.30% of the company's stock.

Institutional Trading of Red Cat

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