Red Cat (NASDAQ:RCAT) Trading Down 4% - Time to Sell?

Key Points

• Red Cat Holdings, Inc. (NASDAQ:RCAT) shares fell by 4%, dropping to a last traded price of $9.66, with a significant decline in trading volume of 64% compared to its average session.
• Analysts have mixed ratings on the stock, with a consensus rating of Strong Buy and a price target of $16.00, reflecting positive sentiment despite the recent price drop.
• Insider transactions indicate notable selling activity, with 276,833 shares sold by insiders in the last three months, which points to potential concerns about future performance.

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) traded down 4% on Tuesday . The stock traded as low as $9.82 and last traded at $9.66. 2,768,460 shares were traded during trading, a decline of 64% from the average session volume of 7,589,258 shares. The stock had previously closed at $10.07.

Analysts Set New Price Targets

Several research firms have commented on RCAT. 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 target price on Red Cat in a report on Friday, August 15th. One investment analyst has rated the stock with a Strong Buy rating and one has assigned a Buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Strong Buy" and a consensus price target of $16.00.

Red Cat Price Performance

The business has a 50 day simple moving average of $8.62 and a 200 day simple moving average of $7.24. The stock has a market cap of $946.62 million, a PE ratio of -17.53 and a beta of 1.44.

Insider Transactions at Red Cat

In other news, Director Nicholas Reyland Liuzza, Jr. sold 100,000 shares of the business's stock in a transaction dated Tuesday, June 10th. The stock was sold at an average price of $8.58, for a total value of $858,000.00. Following the sale, the director directly owned 387,445 shares in the company, valued at $3,324,278.10. The trade was a 20.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Joseph David Freedman sold 150,000 shares of Red Cat stock in a transaction dated 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 sale, the director directly owned 165,260 shares in the company, valued at approximately $1,217,966.20. This represents a 47.58% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 276,833 shares of company stock worth $2,214,060 in the last three months. Insiders own 15.30% of the company's stock.

Hedge Funds Weigh In On Red Cat

Institutional investors have recently bought and sold shares of the business. Geode Capital Management LLC grew its position in shares of Red Cat by 142.7% in the second quarter. Geode Capital Management LLC now owns 1,656,720 shares of the company's stock valued at $12,063,000 after purchasing an additional 974,121 shares during the last quarter. Captrust Financial Advisors acquired a new position in shares of Red Cat in the fourth quarter valued at approximately $4,262,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Red Cat by 125.5% in the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 517,061 shares of the company's stock valued at $3,764,000 after purchasing an additional 287,802 shares during the last quarter. AWM Investment Company Inc. grew its position in shares of Red Cat by 15.3% in the second quarter. AWM Investment Company Inc. now owns 2,037,616 shares of the company's stock valued at $14,834,000 after purchasing an additional 269,942 shares during the last quarter. Finally, Apis Capital Advisors LLC grew its position in shares of Red Cat by 61.7% in the fourth quarter. Apis Capital Advisors LLC now owns 650,000 shares of the company's stock valued at $8,352,000 after purchasing an additional 248,000 shares during the last quarter. Institutional investors and hedge funds own 37.97% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.