Red Cat (NASDAQ:RCAT) Trading 7.1% Higher - Should You Buy?

Key Points

• Red Cat Holdings, Inc. shares increased by 7.1% on Monday, trading at approximately $10.86, while averaging 7 million shares during the session, down from an average of over 8 million shares.
• Analysts have set a consensus price target of $16.00 for Red Cat, with ratings reflecting a majority of "Strong Buy" and "Buy" recommendations.
• Insider trading saw Director Christopher R. Moe sell 10,000 shares, representing a 13.68% decrease in his ownership, amid recent activity from institutional investors increasing their stakes in the company.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) shares traded up 7.1% on Monday . The company traded as high as $11.13 and last traded at $10.86. 7,007,899 shares were traded during mid-day trading, a decline of 13% from the average session volume of 8,087,559 shares. The stock had previously closed at $10.14.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the stock. Northland Securities set a $16.00 price target on shares of Red Cat in a research report on Friday, August 15th. Wall Street Zen upgraded shares of Red Cat from a "sell" rating to a "hold" rating in a research note 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 stock. Based on data from MarketBeat, the company presently has an average rating of "Strong Buy" and a consensus price target of $16.00.

Red Cat Stock Up 1.8%

The company has a market cap of $1.22 billion, a PE ratio of -19.21 and a beta of 1.44. The firm's fifty day simple moving average is $9.48 and its 200-day simple moving average is $7.69.

Insider Activity

In other news, Director Christopher R. Moe sold 10,000 shares of the stock in a transaction on Friday, September 12th. The shares were sold at an average price of $10.96, for a total value of $109,600.00. Following the completion of the sale, the director owned 63,073 shares of the company's stock, valued at $691,280.08. This represents a 13.68% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders have sold a total of 76,833 shares of company stock valued at $752,460 over the last ninety days. 15.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Red Cat

A number of large investors have recently added to or reduced their stakes in RCAT. Bank of America Corp DE grew its holdings in 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 purchasing an additional 2,727 shares in the last quarter. Millennium Management LLC grew its holdings in Red Cat by 44.1% during the 4th quarter. Millennium Management LLC now owns 60,864 shares of the company's stock valued at $782,000 after purchasing an additional 18,641 shares in the last quarter. Tidal Investments LLC acquired a new stake in Red Cat during the 4th quarter valued at $270,000. Two Sigma Advisers LP acquired a new stake in Red Cat during the 4th quarter valued at $362,000. Finally, Squarepoint Ops LLC grew its holdings in Red Cat by 23.0% during the 4th quarter. Squarepoint Ops LLC now owns 15,496 shares of the company's stock valued at $199,000 after purchasing an additional 2,902 shares in the last quarter. 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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