Red Cat (NASDAQ:RCAT) Trading 1.7% Higher - Should You Buy?

Key Points

• Red Cat Holdings, Inc. (NASDAQ:RCAT) saw a 1.7% increase in trading on Monday, closing at $9.49 after earlier highs of $10.13, despite a significant drop in trading volume.
• Equities analysts project growth for Red Cat, with Northland Securities setting a $15.00 price target and Wall Street Zen upgrading the stock from a "sell" to a "hold" rating.
• Insider activity indicates significant share sales, with 350,309 shares sold by insiders last quarter, reflecting a decrease in their ownership positions in the company.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) was up 1.7% during trading on Monday . The company traded as high as $10.13 and last traded at $9.49. Approximately 3,944,431 shares changed hands during mid-day trading, a decline of 48% from the average daily volume of 7,575,683 shares. The stock had previously closed at $9.33.

Wall Street Analyst Weigh In

Several research firms recently commented on RCAT. 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 objective on Red Cat in a research report on Tuesday, August 5th.

Red Cat Trading Down 0.6%

The stock has a market cap of $856.79 million, a price-to-earnings ratio of -17.28 and a beta of 1.44. The company 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 earnings results on Wednesday, May 14th. The company reported ($0.27) earnings per share for the quarter, missing the consensus estimate of ($0.10) by ($0.17). As a group, analysts anticipate that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Insider Buying and Selling at Red Cat

In other news, Director Nicholas Reyland Liuzza, Jr. sold 100,000 shares of the firm's stock in a transaction 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 sale, the director owned 387,445 shares of the company's stock, valued at $3,324,278.10. This trade represents a 20.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Joseph David Freedman sold 150,000 shares of the company's stock in a transaction 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 transaction, the director directly owned 165,260 shares in the company, 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. Over the last three months, insiders have sold 350,309 shares of company stock worth $2,635,570. Company insiders own 15.30% of the company's stock.

Institutional Trading of Red Cat

Institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its position in Red Cat by 9.0% in the 4th quarter. Vanguard Group Inc. now owns 2,505,613 shares of the company's stock worth $32,197,000 after buying an additional 207,727 shares in the last quarter. Geode Capital Management LLC increased its stake 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 worth $12,063,000 after acquiring an additional 974,121 shares during the last quarter. Apis Capital Advisors LLC increased its stake in shares of Red Cat by 4.9% in the first quarter. Apis Capital Advisors LLC now owns 682,000 shares of the company's stock worth $4,010,000 after acquiring an additional 32,000 shares during the last quarter. Rockefeller Capital Management L.P. acquired a new position in shares of Red Cat in the fourth quarter worth $6,628,000. Finally, Captrust Financial Advisors acquired a new position in shares of Red Cat in the fourth quarter worth $4,262,000. 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.