Red Cat (NASDAQ:RCAT) Trading Down 2.8% - Here's Why

Key Points

• Red Cat Holdings, Inc. (NASDAQ: RCAT) experienced a 2.8% drop in share price on Friday, trading as low as $8.60 with a volume decrease of 79% from its average daily trading volume.
• An analyst upgrade raised Red Cat from a "sell" to a "hold" rating, while the stock currently boasts an average target price of $16.00, indicating potential growth prospects.
• Recent insider activity included the sale of 276,833 shares by company directors, reflecting a significant decrease in their ownership and potentially impacting investor confidence.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s share price dropped 2.8% during trading on Friday . The stock traded as low as $8.60 and last traded at $8.79. Approximately 1,568,736 shares were traded during trading, a decline of 79% from the average daily volume of 7,563,692 shares. The stock had previously closed at $9.04.

Analyst Ratings Changes

RCAT has been the topic of several recent research reports. 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 $16.00 price target on Red Cat in a research report on Friday, August 15th. 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, Red Cat presently has an average rating of "Strong Buy" and an average target price of $16.00.

Red Cat Stock Performance

The firm has a market capitalization of $888.66 million, a P/E ratio of -16.50 and a beta of 1.44. The stock has a fifty day moving average price of $8.73 and a two-hundred day moving average price of $7.26.

Insider Activity

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

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Invesco Ltd. acquired a new position in Red Cat during the 4th quarter valued at approximately $301,000. Wells Fargo & Company MN boosted its position in Red Cat by 446.5% during the 4th 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 during the period. Barclays PLC boosted its position in Red Cat by 1,090.4% during the 4th quarter. Barclays PLC now owns 104,632 shares of the company's stock valued at $1,345,000 after purchasing an additional 95,842 shares during the period. Tidal Investments LLC acquired a new position in Red Cat during the 4th quarter valued at approximately $270,000. Finally, Captrust Financial Advisors acquired a new position in Red Cat during the 4th quarter valued at approximately $4,262,000. Institutional investors and hedge funds own 37.97% of the company's stock.

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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