Red Cat (NASDAQ:RCAT) Trading 3.1% Higher - Still a 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.

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

Analysts Set New Price Targets

A number of analysts recently issued reports on the stock. Northland Securities set a $16.00 target price on shares of 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 report on Saturday, July 26th. One investment analyst has rated the stock with a Strong Buy rating and one has given a Buy rating to the company. According to MarketBeat.com, the company has a consensus rating of "Strong Buy" and a consensus target price of $16.00.

Red Cat Trading Up 0.5%

The firm has a market cap of $984.13 million, a PE ratio of -18.25 and a beta of 1.44. The stock's 50 day moving average price is $8.60 and its 200 day moving average price is $7.25.

Insider Activity at Red Cat

In related news, Director Christopher R. Moe sold 16,833 shares of the firm's stock in a transaction on Thursday, August 21st. The shares were sold at an average price of $9.58, for a total transaction of $161,260.14. Following the completion of the sale, the director directly owned 113,073 shares of the company's stock, valued at approximately $1,083,239.34. This trade represents a 12.96% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Joseph David Freedman sold 150,000 shares of the business's stock in a transaction on 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 completion of the transaction, the director owned 165,260 shares in the company, valued at $1,217,966.20. This represents a 47.58% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 276,833 shares of company stock worth $2,214,060. 15.30% of the stock is currently owned by company insiders.

Institutional Trading of Red Cat

Several large investors have recently modified their holdings of RCAT. VestGen Advisors LLC lifted its stake in shares of Red Cat by 4.9% in the second quarter. VestGen Advisors LLC now owns 23,625 shares of the company's stock worth $172,000 after acquiring an additional 1,097 shares in the last quarter. Bank of America Corp DE boosted its stake in shares of Red Cat by 407.0% during the 4th 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 grew 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 worth $199,000 after buying an additional 2,902 shares in the last quarter. Western Wealth Management LLC increased its stake in shares of Red Cat by 12.8% in the second quarter. Western Wealth Management LLC now owns 26,500 shares of the company's stock worth $193,000 after buying an additional 3,000 shares during the last quarter. Finally, Financial Advocates Investment Management raised its holdings in Red Cat by 29.0% in the second 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. 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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