Red Cat (NASDAQ:RCAT) Trading Down 2.7% - What's Next?

Key Points

• Red Cat Holdings (NASDAQ:RCAT) shares have declined by 2.7%, trading as low as $9.09 with a significant drop in trading volume, down 80% from the average.
• Wall Street analysts are optimistic, with Northland Securities setting a price target of $15.00 and a recent upgrade from a "sell" to a "hold" rating by Wall Street Zen.
• Insider transactions reveal a notable decrease in ownership for directors, with a total of 350,309 shares sold in the last quarter, raising potential concerns about insider confidence.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) shares traded down 2.7% during mid-day trading on Tuesday . The company traded as low as $9.09 and last traded at $9.11. 1,549,820 shares traded hands during mid-day trading, a decline of 80% from the average session volume of 7,567,196 shares. The stock had previously closed at $9.36.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the stock. Wall Street Zen raised shares of Red Cat from a "sell" rating to a "hold" rating in a research note on Saturday, July 26th. Northland Securities set a $15.00 price target on shares of Red Cat in a research report on Tuesday, August 5th.

Red Cat Trading Down 0.0%

The stock has a market cap of $861.48 million, a price-to-earnings ratio of -17.36 and a beta of 1.44. The stock has a fifty day simple moving average of $8.40 and a 200-day simple moving average of $7.25.

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

Insider Buying and Selling at Red Cat

In other Red Cat news, Director Joseph David Freedman sold 150,000 shares of the stock in a transaction dated Monday, June 30th. The stock was sold at an average price of $7.37, for a total value of $1,105,500.00. Following the completion of the transaction, the director directly owned 165,260 shares in the company, valued at approximately $1,217,966.20. This trade represents a 47.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Nicholas Reyland Liuzza, Jr. sold 100,309 shares of Red Cat stock in a transaction that occurred on Wednesday, May 21st. The stock was sold at an average price of $6.70, for a total transaction of $672,070.30. Following the sale, the director owned 387,445 shares in the company, 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. Insiders have sold a total of 350,309 shares of company stock worth $2,635,570 in the last quarter. Company insiders own 15.30% of the company's stock.

Institutional Investors Weigh In On Red Cat

Several large investors have recently modified their holdings of the company. Bank of America Corp DE increased its stake in shares of Red Cat by 407.0% in the 4th quarter. Bank of America Corp DE now owns 3,397 shares of the company's stock valued at $44,000 after acquiring an additional 2,727 shares in the last quarter. Squarepoint Ops LLC increased its position in Red Cat by 23.0% in the 4th quarter. Squarepoint Ops LLC now owns 15,496 shares of the company's stock valued at $199,000 after buying an additional 2,902 shares in the last quarter. Western Wealth Management LLC boosted its holdings in 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 acquiring an additional 3,000 shares in the last quarter. U.S. Capital Wealth Advisors LLC increased its holdings in shares of Red Cat by 30.0% during the first quarter. U.S. Capital Wealth Advisors LLC now owns 14,070 shares of the company's stock valued at $83,000 after acquiring an additional 3,250 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. raised its holdings in Red Cat by 4.0% during the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 120,297 shares of the company's stock worth $707,000 after buying an additional 4,587 shares during the last quarter. 37.97% of the stock is currently 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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