Red Cat (NASDAQ:RCAT) Trading Up 4.6% - Still a Buy?

Key Points

• Red Cat Holdings, Inc. (NASDAQ: RCAT) saw its stock price increase by 4.6% during mid-day trading, reaching a high of $9.99 before closing at $9.76.
• Research analysts have set a new price target of $15.00 for Red Cat, with Wall Street Zen upgrading the stock from a "sell" to a "hold" rating.
• Insider trades indicate significant selling activity, with directors selling approximately 350,309 shares valued at over $2.6 million in the last quarter.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) traded up 4.6% on Friday . The stock traded as high as $9.99 and last traded at $9.76. 2,283,013 shares changed hands during mid-day trading, a decline of 70% from the average session volume of 7,580,895 shares. The stock had previously closed at $9.33.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the company. Northland Securities set a $15.00 target price on Red Cat in a research report on Tuesday, August 5th. Wall Street Zen raised Red Cat from a "sell" rating to a "hold" rating in a research report on Saturday, July 26th.

Red Cat Stock Up 0.3%

The company has a market cap of $860.93 million, a P/E ratio of -17.33 and a beta of 1.44. The company has a 50 day moving average price of $8.40 and a 200-day moving average price of $7.25.

Red Cat (NASDAQ:RCAT - Get Free Report) last released its quarterly earnings results 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). On average, research analysts expect that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Insider Buying and Selling at Red Cat

In other news, Director Joseph David Freedman sold 150,000 shares of the stock in a transaction on Monday, June 30th. The stock was 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 of the company's stock, valued at approximately $1,217,966.20. This represents a 47.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Nicholas Reyland Liuzza, Jr. sold 100,309 shares of the stock in a transaction on Wednesday, May 21st. The stock was sold at an average price of $6.70, for a total value of $672,070.30. Following the completion of the transaction, the director directly owned 387,445 shares of the company's stock, valued at approximately $2,595,881.50. The trade was a 20.57% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 350,309 shares of company stock valued at $2,635,570. Company insiders own 15.30% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of RCAT. Caitong International Asset Management Co. Ltd boosted 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 buying an additional 6,023 shares in the last quarter. Bank of America Corp DE boosted 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 buying an additional 2,727 shares in the last quarter. SBI Securities Co. Ltd. boosted its stake in Red Cat by 104.4% during the first quarter. SBI Securities Co. Ltd. now owns 9,467 shares of the company's stock valued at $56,000 after buying an additional 4,835 shares in the last quarter. Summit Trail Advisors LLC bought a new position in Red Cat during the first quarter valued at about $59,000. Finally, AlphaQuest LLC bought a new position in Red Cat during the second quarter valued at about $67,000. Institutional investors 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.