Red Cat (NASDAQ:RCAT) Trading Up 4.6% - Time to Buy?

Key Points

• Red Cat Holdings, Inc. (NASDAQ:RCAT) shares increased by 4.6% to $8.58, but trading volume fell by 70% compared to its average daily volume.
• Wall Street Zen upgraded Red Cat's rating from "sell" to "hold", potentially signaling a more favorable outlook for investors.
• Despite a market capitalization of $818.16 million, Red Cat reported a disappointing EPS of -$0.27, missing analysts' expectations by $0.17.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) shares rose 4.6% during trading on Monday . The stock traded as high as $8.85 and last traded at $8.58. Approximately 2,250,185 shares changed hands during mid-day trading, a decline of 70% from the average daily volume of 7,540,990 shares. The stock had previously closed at $8.20.

Analyst Upgrades and Downgrades

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

Red Cat Trading Up 8.5%

The company has a market capitalization of $818.16 million, a PE ratio of -16.49 and a beta of 1.44. The firm's 50-day simple moving average is $8.03 and its 200-day simple moving average is $7.21.

Red Cat (NASDAQ:RCAT - Get Free Report) last released its quarterly earnings data on Wednesday, May 14th. The company reported ($0.27) earnings per share (EPS) 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 EPS for the current year.

Insider Activity at Red Cat

In other news, Director Nicholas Reyland Liuzza, Jr. sold 100,000 shares of the company's stock in a transaction that occurred on Tuesday, June 10th. The shares were 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 approximately $3,324,278.10. This represents a 20.52% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Joseph David Freedman sold 150,000 shares of the business's stock in a transaction that occurred on Monday, June 30th. The stock was sold at an average price of $7.37, for a total transaction of $1,105,500.00. Following the transaction, the director owned 165,260 shares of the company's stock, valued at approximately $1,217,966.20. This trade represents a 47.58% decrease in their position. 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 in the last ninety days. Corporate insiders own 15.30% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of RCAT. Caitong International Asset Management Co. Ltd raised its stake in shares of Red Cat by 28,681.0% during the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 6,044 shares of the company's stock worth $44,000 after acquiring an additional 6,023 shares in the last quarter. Bank of America Corp DE increased its stake in Red Cat by 407.0% during the 4th quarter. Bank of America Corp DE now owns 3,397 shares of the company's stock valued at $44,000 after purchasing an additional 2,727 shares in the last quarter. SBI Securities Co. Ltd. increased its stake in Red Cat by 104.4% during the 1st quarter. SBI Securities Co. Ltd. now owns 9,467 shares of the company's stock valued at $56,000 after purchasing an additional 4,835 shares in the last quarter. Summit Trail Advisors LLC acquired a new position in Red Cat during the 1st quarter valued at approximately $59,000. Finally, AlphaQuest LLC acquired a new position in Red Cat during the 2nd quarter valued at approximately $67,000. 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.

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