Red Cat (NASDAQ:RCAT) Trading Down 3.5% Following Insider Selling

Key Points

• Red Cat Holdings, Inc. (NASDAQ:RCAT) saw its stock price decline by 3.5% to $10.60, which is significantly below its previous closing price of $10.99, with trading volume dropping 79% from average levels.
• Analysts have a consensus rating of "Strong Buy" for Red Cat, with a price target set at $16.00, reflecting confidence in the company's future performance despite recent stock volatility.
• Insider trading activity includes significant sales by directors, with a total of 176,833 shares sold in the last quarter, indicating potential shifts in internal sentiment towards the company’s stock.

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) were down 3.5% during mid-day trading on Monday after an insider sold shares in the company. The stock traded as low as $10.48 and last traded at $10.60. Approximately 1,547,518 shares traded hands during mid-day trading, a decline of 79% from the average daily volume of 7,546,059 shares. The stock had previously closed at $10.99.

Specifically, Director Christopher R. Moe sold 10,000 shares of the company's stock in a transaction dated Friday, September 12th. The shares were sold at an average price of $10.96, for a total transaction of $109,600.00. Following the completion of the sale, the director directly owned 63,073 shares in the company, valued at $691,280.08. This represents a 13.68% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Christopher R. Moe sold 30,000 shares of the stock in a transaction dated Thursday, September 11th. The shares were sold at an average price of $10.11, for a total transaction of $303,300.00. Following the completion of the sale, the director owned 73,073 shares of the company's stock, valued at approximately $738,768.03. The trade was a 29.11% decrease in their position. The disclosure for this sale can be found here. In related news, Director Christopher R. Moe sold 10,000 shares of the stock in a transaction dated Monday, September 8th. The shares were sold at an average price of $8.90, for a total value of $89,000.00. Following the completion of the sale, the director owned 103,073 shares in the company, valued at approximately $917,349.70. This trade represents a 8.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink.

Analysts Set New Price Targets

RCAT has been the subject of a number of analyst reports. Wall Street Zen upgraded shares of Red Cat from a "sell" rating to a "hold" rating in a research note on Saturday, July 26th. Northland Securities set a $16.00 price objective on Red Cat in a research report on Friday, August 15th. One equities research analyst has rated the stock with a Strong Buy rating and one has given a Buy rating to the stock. According to data from MarketBeat, Red Cat currently has a consensus rating of "Strong Buy" and an average target price of $16.00.

Red Cat Stock Performance

The firm's 50-day simple moving average is $9.41 and its 200 day simple moving average is $7.40.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in RCAT. 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 purchasing an additional 2,727 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new stake in shares of Red Cat during the 4th quarter worth approximately $1,801,000. Millennium Management LLC boosted its position in shares of Red Cat by 44.1% during the 4th quarter. Millennium Management LLC now owns 60,864 shares of the company's stock worth $782,000 after acquiring an additional 18,641 shares in the last quarter. Nomura Holdings Inc. acquired a new stake in shares of Red Cat during the 4th quarter worth approximately $180,000. Finally, Tidal Investments LLC acquired a new stake in shares of Red Cat during the 4th quarter worth approximately $270,000. 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.