Red Cat (NASDAQ:RCAT) Shares Up 2% - Here's What Happened

Key Points

• Red Cat Holdings, Inc. (NASDAQ:RCAT) saw a 2% increase in stock price during mid-day trading, with shares trading at $8.36 after a previous close of $8.19.
• Wall Street Zen has upgraded Red Cat's rating from "sell" to "hold", indicating a potential shift in investor sentiment.
• Insider trading activity included significant sales, with Director Joseph David Freedman selling 150,000 shares, representing a 47.58% decrease in his ownership.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) shares traded up 2% on Thursday . The company traded as high as $8.60 and last traded at $8.36. 2,102,558 shares were traded during trading, a decline of 72% from the average session volume of 7,584,440 shares. The stock had previously closed at $8.19.

Analyst Upgrades and Downgrades

Separately, Wall Street Zen raised shares of Red Cat from a "sell" rating to a "hold" rating in a research report on Saturday, July 26th.

Red Cat Price Performance

The business's fifty day moving average is $8.00 and its 200-day moving average is $7.27. The firm has a market cap of $759.39 million, a PE ratio of -15.31 and a beta of 1.43.

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

Insider Activity

In other news, 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 transaction, the director owned 165,260 shares in the company, valued at $1,217,966.20. This trade represents a 47.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Nicholas Reyland Liuzza, Jr. sold 100,309 shares of Red Cat stock in a transaction dated Wednesday, May 21st. The stock was sold at an average price of $6.70, for a total transaction of $672,070.30. Following the completion of the transaction, the director owned 387,445 shares of the company's stock, valued at $2,595,881.50. The trade was a 20.57% decrease in their position. The disclosure for this sale can be found here. Insiders sold 350,309 shares of company stock valued at $2,635,570 in the last quarter. Corporate insiders own 15.30% of the company's stock.

Hedge Funds Weigh In On Red Cat

Hedge funds have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd grew its stake in Red Cat by 28,681.0% during the second quarter. Caitong International Asset Management Co. Ltd now owns 6,044 shares of the company's stock valued at $44,000 after acquiring an additional 6,023 shares in the last quarter. Bank of America Corp DE grew its stake in Red Cat by 407.0% during the fourth quarter. Bank of America Corp DE now owns 3,397 shares of the company's stock valued at $44,000 after acquiring an additional 2,727 shares in the last quarter. SBI Securities Co. Ltd. grew its stake in Red Cat by 104.4% in the 1st quarter. SBI Securities Co. Ltd. now owns 9,467 shares of the company's stock worth $56,000 after buying an additional 4,835 shares in the last quarter. Summit Trail Advisors LLC purchased a new position in Red Cat in the 1st quarter worth approximately $59,000. Finally, AlphaQuest LLC purchased a new position in Red Cat in the 2nd quarter worth approximately $67,000. Hedge funds and other institutional investors 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.