Red Cat (NASDAQ:RCAT) Trading 13.5% Higher - Here's What Happened

Key Points

• Red Cat Holdings, Inc. shares surged 13.5%, closing at $14.89, despite a 17% decline in trading volume compared to the average session.
• Wall Street analysts have mixed reviews, with Northland Securities setting a $16.00 price target while Weiss Ratings reaffirmed a sell rating.
• Institutional investors have increased their holdings in Red Cat, with Goldman Sachs raising its stake by 28.7% during the first quarter.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) shares traded up 13.5% during trading on Monday . The company traded as high as $14.89 and last traded at $14.89. 7,119,940 shares were traded during trading, a decline of 17% from the average session volume of 8,602,787 shares. The stock had previously closed at $13.12.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on RCAT. Northland Securities set a $16.00 price target on shares of Red Cat in a research report on Friday, August 15th. Wall Street Zen cut shares of Red Cat from a "hold" rating to a "sell" rating in a research note on Saturday, October 4th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Red Cat in a research note on Wednesday, October 8th. Needham & Company LLC initiated coverage on shares of Red Cat in a research note on Friday, October 3rd. They set a "buy" rating and a $17.00 price objective on the stock. Finally, LADENBURG THALM/SH SH raised shares of Red Cat to a "strong-buy" rating in a research note on Thursday, October 2nd. Two investment analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Red Cat has a consensus rating of "Buy" and a consensus target price of $16.50.

Red Cat Price Performance

The stock has a market capitalization of $1.82 billion, a P/E ratio of -28.64 and a beta of 1.45. The business's 50 day simple moving average is $10.23 and its 200-day simple moving average is $8.18.

Insiders Place Their Bets

In other Red Cat news, Director Christopher R. Moe sold 10,000 shares of the stock in a transaction on Monday, September 29th. The shares were sold at an average price of $10.91, for a total value of $109,100.00. Following the sale, the director directly owned 53,073 shares in the company, valued at approximately $579,026.43. This trade represents a 15.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders have sold 86,833 shares of company stock valued at $861,560 in the last quarter. Company insiders own 15.30% of the company's stock.

Institutional Investors Weigh In On Red Cat

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Goldman Sachs Group Inc. raised its holdings in shares of 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 acquiring an additional 59,334 shares during the period. Toth Financial Advisory Corp acquired a new stake in shares of Red Cat during the second quarter worth $202,000. Integrated Wealth Concepts LLC raised its holdings in shares of 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 acquiring an additional 77,630 shares during the period. Invesco Ltd. raised its holdings in shares of 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 acquiring an additional 72,678 shares during the period. Finally, Wealth Enhancement Advisory Services LLC acquired a new stake in shares of Red Cat during the second quarter worth $180,000. 37.97% of the stock is currently owned by institutional investors and hedge funds.

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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