Red Cat (NASDAQ:RCAT) Trading Up 4.6% - What's Next?

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)'s stock price was up 4.6% during mid-day trading on Friday . The stock traded as high as $9.99 and last traded at $9.76. Approximately 2,283,013 shares were traded during trading, a decline of 70% from the average daily volume of 7,580,895 shares. The stock had previously closed at $9.33.

Analysts Set New Price Targets

RCAT has been the topic of a number of research analyst reports. Northland Securities set a $15.00 price target on Red Cat in a research note on Tuesday. Wall Street Zen raised shares of Red Cat from a "sell" rating to a "hold" rating in a research note on Saturday, July 26th.

Red Cat Trading Up 1.5%

The stock's fifty day simple moving average is $8.27 and its 200-day simple moving average is $7.25. The company has a market capitalization of $870.64 million, a price-to-earnings ratio of -17.58 and a beta of 1.44.

Red Cat (NASDAQ:RCAT - Get Free Report) last posted 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). On average, analysts anticipate that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Insider Buying and Selling at Red Cat

In other Red Cat news, Director Nicholas Reyland Liuzza, Jr. sold 100,000 shares of the firm's stock in a transaction that occurred on Tuesday, June 10th. The stock was sold at an average price of $8.58, for a total transaction of $858,000.00. Following the completion of the sale, the director owned 387,445 shares in the company, valued at $3,324,278.10. This trade represents a 20.52% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Joseph David Freedman sold 150,000 shares of the company's stock in a transaction that occurred 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 completion of the transaction, the director directly owned 165,260 shares in the company, valued at approximately $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 quarter, insiders sold 350,309 shares of company stock valued at $2,635,570. 15.30% of the stock is owned by insiders.

Institutional Trading of Red Cat

Institutional investors have recently added to or reduced their stakes in the stock. Bank of America Corp DE raised its stake in shares of 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 purchasing an additional 2,727 shares in the last quarter. 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. SBI Securities Co. Ltd. grew its holdings in Red Cat by 104.4% during the first quarter. SBI Securities Co. Ltd. now owns 9,467 shares of the company's stock worth $56,000 after acquiring an additional 4,835 shares during the period. Summit Trail Advisors LLC bought a new stake in Red Cat in the first quarter worth about $59,000. Finally, AlphaQuest LLC acquired a new stake in Red Cat in the 2nd quarter valued at about $67,000. 37.97% of the stock is 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.

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.