Red Cat (NASDAQ:RCAT) Stock Price Up 9.1% - What's Next?

Key Points

• Red Cat Holdings, Inc. (NASDAQ:RCAT) saw a significant stock price increase of 9.1% on Monday, with shares trading at $9.18 compared to the previous close of $8.41.
• Equities analysts have upgraded Red Cat's stock from a "sell" rating to a "hold" rating, with Northland Securities setting a target price of $16.00.
• Insider trades were notable, with directors selling over 350,000 shares of stock in the last 90 days, leading to a decrease in their ownership positions.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s share price rose 9.1% on Monday . The stock traded as high as $9.18 and last traded at $9.18. Approximately 3,685,445 shares changed hands during trading, a decline of 52% from the average daily volume of 7,611,247 shares. The stock had previously closed at $8.41.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on RCAT shares. Wall Street Zen raised 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 target price on Red Cat in a research note on Friday.

Red Cat Trading Up 6.7%

The stock's 50-day moving average price is $8.52 and its 200-day moving average price is $7.26. The stock has a market cap of $825.15 million, a price-to-earnings ratio of -16.61 and a beta of 1.44.

Insider Buying and Selling

In related news, Director Joseph David Freedman sold 150,000 shares of the business's stock in a transaction dated Monday, June 30th. The stock was sold at an average price of $7.37, for a total transaction of $1,105,500.00. Following the transaction, the director owned 165,260 shares in the company, valued at $1,217,966.20. The trade was a 47.58% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, 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 value of $858,000.00. Following the transaction, the director directly owned 387,445 shares in the company, valued at $3,324,278.10. This trade represents a 20.52% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 350,309 shares of company stock valued at $2,635,570. Company insiders own 15.30% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the company. VestGen Advisors LLC grew its position in Red Cat by 4.9% during the 2nd quarter. VestGen Advisors LLC now owns 23,625 shares of the company's stock valued at $172,000 after purchasing an additional 1,097 shares during the last quarter. Bank of America Corp DE grew its holdings in shares of Red Cat by 407.0% during the fourth quarter. Bank of America Corp DE now owns 3,397 shares of the company's stock valued at $44,000 after buying an additional 2,727 shares during the last quarter. Squarepoint Ops LLC increased its position in shares of Red Cat by 23.0% during the fourth quarter. Squarepoint Ops LLC now owns 15,496 shares of the company's stock valued at $199,000 after acquiring an additional 2,902 shares in the last quarter. Western Wealth Management LLC raised its holdings in Red Cat by 12.8% in the 2nd quarter. Western Wealth Management LLC now owns 26,500 shares of the company's stock worth $193,000 after acquiring an additional 3,000 shares during the last quarter. Finally, Financial Advocates Investment Management lifted its position in Red Cat by 29.0% in the 2nd quarter. Financial Advocates Investment Management now owns 13,555 shares of the company's stock valued at $99,000 after acquiring an additional 3,046 shares in the last quarter. Hedge funds and other institutional investors 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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