Red Cat (NASDAQ:RCAT) Trading Up 3.1% - Time to Buy?

Key Points

• Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) saw a 3.1% increase, closing at $10.13 after reaching a high of $10.24, despite a significant decline in trading volume.
• Analysts have set a target price of $16.00 for Red Cat, with the stock receiving a consensus rating of "Strong Buy" and upgrades from multiple analysts.
• Insider trading activity has been notable, with significant stock sales by directors, leading to a 15.30% ownership of shares by company insiders.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) rose 3.1% during trading on Monday . The company traded as high as $10.24 and last traded at $10.13. Approximately 2,242,213 shares were traded during trading, a decline of 70% from the average daily volume of 7,596,631 shares. The stock had previously closed at $9.82.

Wall Street Analysts Forecast Growth

RCAT has been the subject of a number of analyst reports. Northland Securities set a $16.00 price target on Red Cat in a research report on Friday, August 15th. Wall Street Zen upgraded Red Cat from a "sell" rating to a "hold" rating in a research report on Saturday, July 26th. One investment analyst has rated the stock with a Strong Buy rating and one has issued a Buy rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Strong Buy" and a consensus price target of $16.00.

Red Cat Stock Down 1.1%

The business has a 50 day simple moving average of $8.73 and a two-hundred day simple moving average of $7.26. The firm has a market cap of $891.85 million, a PE ratio of -16.56 and a beta of 1.44.

Insiders Place Their Bets

In other Red Cat news, Director Nicholas Reyland Liuzza, Jr. sold 100,000 shares of the stock in a transaction on Tuesday, June 10th. The stock was sold at an average price of $8.58, for a total value of $858,000.00. Following the sale, the director 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 transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Joseph David Freedman sold 150,000 shares of the firm's stock in a transaction on Monday, June 30th. The shares were sold at an average price of $7.37, for a total value of $1,105,500.00. Following the transaction, the director owned 165,260 shares in the company, valued at approximately $1,217,966.20. This represents a 47.58% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 276,833 shares of company stock worth $2,214,060 over the last quarter. Company insiders own 15.30% of the company's stock.

Hedge Funds Weigh In On Red Cat

Institutional investors have recently made changes to their positions in the company. Marex Group plc bought a new stake in Red Cat during the second quarter valued at about $333,000. Captrust Financial Advisors lifted its holdings 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 during the period. Tidal Investments LLC lifted its holdings 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 during the period. 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. Hedge funds and other institutional investors own 37.97% of the company's stock.

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.