Red Cat (NASDAQ:RCAT) Trading Down 10% - Should You Sell?

Key Points

• Red Cat Holdings, Inc. (NASDAQ: RCAT) shares fell by 10% on Thursday, closing at $13.20, with a notable drop in trading volume of 51% compared to its average.
• Analyst ratings show mixed sentiments, with two strong buy ratings and one sell rating, resulting in an average rating of "buy" and a consensus price target of $16.50.
• Insider trading activity revealed that Director Christopher R. Moe sold 10,000 shares, marking a 15.85% decrease in his position, while institutional ownership stands at 37.97% of the total shares.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) shares traded down 10% on Thursday . The company traded as low as $13.39 and last traded at $13.20. 4,242,491 shares were traded during trading, a decline of 51% from the average session volume of 8,658,022 shares. The stock had previously closed at $14.67.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the stock. Needham & Company LLC assumed coverage on shares of Red Cat in a research note on Friday, October 3rd. They set a "buy" rating and a $17.00 price target on the stock. LADENBURG THALM/SH SH upgraded shares of Red Cat to a "strong-buy" rating in a research note on Thursday, October 2nd. Weiss Ratings reiterated a "sell (d-)" rating on shares of Red Cat in a research note on Wednesday, October 8th. Wall Street Zen cut Red Cat from a "hold" rating to a "sell" rating in a report on Saturday, October 4th. Finally, Northland Securities set a $16.00 price objective on Red Cat in a report on Friday, August 15th. Two research analysts have rated the stock with a Strong Buy rating, two have given a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Buy" and a consensus price target of $16.50.

Red Cat Stock Down 11.9%

The stock has a fifty day moving average of $10.57 and a 200-day moving average of $8.34. The firm has a market capitalization of $1.53 billion, a P/E ratio of -23.89 and a beta of 1.45.

Insiders Place Their Bets

In other Red Cat news, Director Christopher R. Moe sold 10,000 shares of the business's stock in a transaction dated Monday, September 29th. The stock was sold at an average price of $10.91, for a total transaction of $109,100.00. Following the completion of the sale, the director directly owned 53,073 shares of the company's stock, valued at approximately $579,026.43. The trade was a 15.85% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Over the last three months, insiders sold 86,833 shares of company stock worth $861,560. Insiders own 15.30% of the company's stock.

Hedge Funds Weigh In On Red Cat

Institutional investors have recently modified their holdings of the stock. Bank of America Corp DE grew its position 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 worth $44,000 after buying an additional 2,727 shares during the period. California State Teachers Retirement System acquired a new position in shares of Red Cat in the 2nd quarter valued at approximately $34,000. Caitong International Asset Management Co. Ltd grew its position in shares of Red Cat by 28,681.0% in the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 6,044 shares of the company's stock valued at $44,000 after purchasing an additional 6,023 shares during the period. BNP Paribas Financial Markets grew its position in shares of Red Cat by 1,537.2% in the 2nd quarter. BNP Paribas Financial Markets now owns 7,220 shares of the company's stock valued at $53,000 after purchasing an additional 6,779 shares during the period. Finally, Ameritas Investment Partners Inc. acquired a new position in shares of Red Cat in the 2nd quarter valued at approximately $56,000. 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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