Stock Traders Purchase High Volume of Red Cat Call Options (NASDAQ:RCAT)

Key Points

• Red Cat Holdings, Inc. experienced a significant surge in call options trading, with 42,436 options purchased—an increase of 131% from its typical volume.
• The stock price rose to $10.61, with a market cap of $1.06 billion and a one-year high of $15.27.
• Trading activity among insiders saw a notable decrease, with Director Christopher R. Moe selling 16,833 shares, reflecting a 12.96% reduction in ownership.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) saw some unusual options trading activity on Thursday. Traders bought 42,436 call options on the company. This is an increase of 131% compared to the typical daily volume of 18,393 call options.

Red Cat Stock Performance

Shares of NASDAQ RCAT traded up $2.09 during midday trading on Thursday, hitting $10.61. 16,513,156 shares of the stock traded hands, compared to its average volume of 7,453,833. Red Cat has a one year low of $2.31 and a one year high of $15.27. The business has a 50 day moving average price of $9.01 and a two-hundred day moving average price of $7.25. The company has a market cap of $1.06 billion, a PE ratio of -19.65 and a beta of 1.44.

Insider Buying and Selling at Red Cat

In other news, Director Christopher R. Moe sold 16,833 shares of the stock in a transaction on Thursday, August 21st. The shares were sold at an average price of $9.58, for a total transaction of $161,260.14. Following the completion of the sale, the director directly owned 113,073 shares in the company, valued at $1,083,239.34. This represents a 12.96% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Joseph David Freedman sold 150,000 shares of the business's stock in a transaction on Monday, June 30th. The shares were sold at an average price of $7.37, for a total transaction of $1,105,500.00. Following the completion of the transaction, the director owned 165,260 shares in the company, valued at approximately $1,217,966.20. The trade was a 47.58% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 176,833 shares of company stock valued at $1,356,060. 15.30% of the stock is currently owned by corporate insiders.

Institutional Trading of Red Cat

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Integrated Wealth Concepts LLC lifted its stake in shares of Red Cat by 66.0% in the first quarter. Integrated Wealth Concepts LLC now owns 195,225 shares of the company's stock valued at $1,148,000 after buying an additional 77,630 shares in the last quarter. Invesco Ltd. raised its holdings in shares of Red Cat by 309.8% in the 1st quarter. Invesco Ltd. now owns 96,134 shares of the company's stock worth $565,000 after acquiring an additional 72,678 shares during the last quarter. Tidal Investments LLC bought a new position in Red Cat in the 4th quarter valued at about $270,000. Apis Capital Advisors LLC lifted its position in Red Cat by 4.9% in the 1st quarter. Apis Capital Advisors LLC now owns 682,000 shares of the company's stock valued at $4,010,000 after acquiring an additional 32,000 shares in the last quarter. Finally, Moors & Cabot Inc. boosted its stake in Red Cat by 293.0% during the 1st quarter. Moors & Cabot Inc. now owns 169,600 shares of the company's stock valued at $997,000 after purchasing an additional 126,450 shares during the last quarter. Institutional investors own 37.97% of the company's stock.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. Northland Securities set a $16.00 target price on Red Cat in a report on Friday, August 15th. Wall Street Zen upgraded shares of Red Cat from a "sell" rating to a "hold" rating in a research report on Saturday, July 26th. One analyst has rated the stock with a Strong Buy rating and one has given a Buy rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Strong Buy" and a consensus price target of $16.00.

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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