Red Cat (NASDAQ:RCAT) Trading Down 2.9% - Should You Sell?

Key Points

• Red Cat Holdings, Inc. (NASDAQ:RCAT) saw its stock price decline by 2.9%, trading between $9.31 and $9.72 with an unusually low trading volume, down 58% from its average.
• Analysts have upgraded Red Cat from a "sell" to a "hold" rating, with a target price set at $15.00 by Northland Securities.
• Insider trading activity included significant sales, with a director selling 150,000 shares for over $1 million, reflecting a 47.58% decrease in their ownership of the stock.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s share price was down 2.9% on Wednesday . The company traded as low as $9.31 and last traded at $9.72. Approximately 3,172,259 shares traded hands during trading, a decline of 58% from the average daily volume of 7,602,562 shares. The stock had previously closed at $10.01.

Analysts Set New Price Targets

A number of analysts have weighed in on RCAT shares. Northland Securities set a $15.00 price objective on Red Cat in a research report on Tuesday. Wall Street Zen raised Red Cat from a "sell" rating to a "hold" rating in a report on Saturday, July 26th.

Red Cat Stock Performance

The firm has a fifty day moving average price of $8.34 and a 200 day moving average price of $7.25. The firm has a market capitalization of $858.17 million, a price-to-earnings ratio of -17.28 and a beta of 1.44.

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

Insider Activity at Red Cat

In related news, Director Nicholas Reyland Liuzza, Jr. sold 100,000 shares of the firm's stock in a transaction that occurred on Tuesday, June 10th. The stock was sold at an average price of $8.58, for a total value of $858,000.00. Following the completion of the transaction, the director directly owned 387,445 shares of the company's stock, valued at $3,324,278.10. This trade represents a 20.52% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Joseph David Freedman sold 150,000 shares of the firm's stock in a transaction that occurred on Monday, June 30th. The shares were 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 of the company's stock, valued at $1,217,966.20. The trade was a 47.58% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 350,309 shares of company stock valued at $2,635,570 over the last three months. Insiders own 15.30% of the company's stock.

Hedge Funds Weigh In On Red Cat

Several hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. increased its stake in Red Cat by 9.0% in the 4th quarter. Vanguard Group Inc. now owns 2,505,613 shares of the company's stock valued at $32,197,000 after purchasing an additional 207,727 shares in the last quarter. Geode Capital Management LLC increased its position in Red Cat by 142.7% during the second quarter. Geode Capital Management LLC now owns 1,656,720 shares of the company's stock worth $12,063,000 after buying an additional 974,121 shares in the last quarter. Apis Capital Advisors LLC increased its position in Red Cat by 4.9% during the first quarter. Apis Capital Advisors LLC now owns 682,000 shares of the company's stock worth $4,010,000 after buying an additional 32,000 shares in the last quarter. Rockefeller Capital Management L.P. purchased a new position in Red Cat during the fourth quarter worth $6,628,000. Finally, Captrust Financial Advisors purchased a new position in Red Cat during the fourth quarter worth $4,262,000. 37.97% of the stock is owned by hedge funds and other institutional investors.

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.