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

Key Points

• Red Cat Holdings, Inc. (NASDAQ:RCAT) experienced a significant increase in call options trading, with 30,077 options purchased, marking a 31% rise from its average daily volume.
• Director Christopher R. Moe sold 30,000 shares at $10.11 each, reducing his position in the company by 29.11%.
• Institutional investors have increased their holdings in Red Cat, with notable increases by Goldman Sachs (28.7% growth) and Invesco Ltd. (309.8% growth).

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) saw unusually large options trading activity on Friday. Stock traders bought 30,077 call options on the company. This is an increase of 31% compared to the average daily volume of 22,952 call options.

Insider Activity at Red Cat

In other news, Director Christopher R. Moe sold 30,000 shares of the firm's stock in a transaction dated Thursday, September 11th. The shares were sold at an average price of $10.11, for a total transaction of $303,300.00. Following the completion of the transaction, the director directly owned 73,073 shares of the company's stock, valued at approximately $738,768.03. This trade represents a 29.11% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Over the last ninety days, insiders have sold 86,833 shares of company stock worth $861,560. 15.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Red Cat

Institutional investors have recently modified their holdings of the business. Goldman Sachs Group Inc. grew its position in shares of Red Cat by 28.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 266,099 shares of the company's stock worth $1,565,000 after buying an additional 59,334 shares during the period. Toth Financial Advisory Corp acquired a new stake in shares of Red Cat during the 2nd quarter worth approximately $202,000. Integrated Wealth Concepts LLC grew its position in shares of Red Cat by 66.0% during the 1st quarter. Integrated Wealth Concepts LLC now owns 195,225 shares of the company's stock worth $1,148,000 after buying an additional 77,630 shares during the period. Invesco Ltd. grew its position in shares of Red Cat by 309.8% during the 1st quarter. Invesco Ltd. now owns 96,134 shares of the company's stock worth $565,000 after buying an additional 72,678 shares during the period. Finally, Everstar Asset Management LLC acquired a new position in Red Cat during the first quarter valued at approximately $211,000. Institutional investors and hedge funds own 37.97% of the company's stock.

Red Cat Stock Performance

RCAT traded up $1.20 during midday trading on Friday, hitting $12.72. The company had a trading volume of 32,011,985 shares, compared to its average volume of 8,319,456. Red Cat has a twelve month low of $2.66 and a twelve month high of $15.27. The firm's 50-day simple moving average is $9.57 and its 200-day simple moving average is $7.80. The company has a market capitalization of $1.50 billion, a PE ratio of -23.37 and a beta of 1.45.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the stock. Wall Street Zen raised shares of Red Cat from a "sell" rating to a "hold" rating in a report on Saturday, July 26th. Needham & Company LLC assumed coverage on shares of Red Cat in a report on Friday. They set a "buy" rating and a $17.00 price objective for the company. Finally, Northland Securities set a $16.00 price objective on shares of Red Cat in a report on Friday, August 15th. One equities research analyst has rated the stock with a Strong Buy rating and two have issued a Buy rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Buy" and a consensus price target of $16.50.

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.

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