Red Cat (NASDAQ:RCAT) Stock Price Down 2.1% - Here's What Happened

Key Points

• Red Cat Holdings, Inc. (NASDAQ:RCAT) saw its stock price fall by 2.1%, closing at $9.30 after trading as low as $9.34, with trading volume declining by 75% from its average.
• Analysts have set a target price of $15.00 for Red Cat, and the stock rating was upgraded from "sell" to "hold" by Wall Street Zen.
• Insider selling occurred recently, with directors selling 350,309 shares valued at around $2.6 million in total, reflecting decreased ownership stakes in the company.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) was down 2.1% on Wednesday . The stock traded as low as $9.34 and last traded at $9.30. Approximately 1,901,564 shares changed hands during mid-day trading, a decline of 75% from the average daily volume of 7,552,382 shares. The stock had previously closed at $9.50.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on RCAT shares. Wall Street Zen raised Red Cat from a "sell" rating to a "hold" rating in a research report on Saturday, July 26th. Northland Securities set a $15.00 target price on Red Cat in a research report on Tuesday, August 5th.

Red Cat Stock Performance

The company has a market capitalization of $840.20 million, a price-to-earnings ratio of -16.92 and a beta of 1.44. The firm has a 50-day simple moving average of $8.48 and a two-hundred day simple moving average of $7.28.

Red Cat (NASDAQ:RCAT - Get Free Report) last released its earnings results on Wednesday, May 14th. The company reported ($0.27) earnings per share for the quarter, missing the consensus estimate of ($0.10) by ($0.17). As a group, equities analysts forecast that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Insider Transactions at Red Cat

In other news, Director Joseph David Freedman sold 150,000 shares of the business's stock in a transaction dated 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 directly owned 165,260 shares of the company's stock, valued at approximately $1,217,966.20. The trade was a 47.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Nicholas Reyland Liuzza, Jr. sold 100,309 shares of the business's stock in a transaction dated Wednesday, May 21st. The stock was sold at an average price of $6.70, for a total value of $672,070.30. Following the transaction, the director directly owned 387,445 shares of the company's stock, valued at approximately $2,595,881.50. This represents a 20.57% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 350,309 shares of company stock valued at $2,635,570. Corporate insiders own 15.30% of the company's stock.

Hedge Funds Weigh In On Red Cat

Institutional investors and hedge funds have recently made changes to their positions in the stock. Bank of Montreal Can acquired a new position in shares of Red Cat during the fourth quarter worth about $166,000. LPL Financial LLC grew its position in shares of Red Cat by 497.2% during the fourth quarter. LPL Financial LLC now owns 74,008 shares of the company's stock worth $951,000 after buying an additional 61,615 shares in the last quarter. Rockefeller Capital Management L.P. acquired a new position in shares of Red Cat during the fourth quarter worth about $6,628,000. Invesco Ltd. acquired a new position in shares of Red Cat during the fourth quarter worth about $301,000. Finally, Wells Fargo & Company MN boosted its holdings in Red Cat by 446.5% in the fourth quarter. Wells Fargo & Company MN now owns 10,465 shares of the company's stock valued at $134,000 after purchasing an additional 8,550 shares in the last quarter. 37.97% of the stock is 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.