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

Key Points

• Red Cat Holdings experienced a significant increase in options trading, with traders acquiring 30,124 call options, marking an approximately 80% increase from the average daily volume.
• Wall Street analysts have upgraded Red Cat from a "sell" to a "hold" rating, indicating a more favorable outlook for the company's stock.
• Insider sales included a director selling 100,000 shares at $8.58 each, resulting in a 20.52% decrease in their position, amid a broader trend of insiders selling a total of 350,309 shares over the last 90 days.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) was the recipient of some unusual options trading on Tuesday. Stock investors acquired 30,124 call options on the company. Thisrepresentsanincreaseofapproximately80% compared to the average daily volume of 16,695 call options.

Wall Street Analysts Forecast Growth

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

Insider Buying and Selling

In other Red Cat news, Director Nicholas Reyland Liuzza, Jr. sold 100,000 shares of Red Cat stock in a transaction 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 sale, the director owned 387,445 shares of the company's stock, valued at $3,324,278.10. The trade was a 20.52% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Joseph David Freedman sold 150,000 shares of Red Cat stock in a transaction 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 transaction, the director owned 165,260 shares in the company, valued at approximately $1,217,966.20. This trade represents a 47.58% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have 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

A number of institutional investors have recently bought and sold shares of the company. Bank of America Corp DE boosted its position 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 purchasing an additional 2,727 shares during the last quarter. Squarepoint Ops LLC boosted its position in Red Cat by 23.0% during the fourth quarter. Squarepoint Ops LLC now owns 15,496 shares of the company's stock valued at $199,000 after purchasing an additional 2,902 shares during the last quarter. U.S. Capital Wealth Advisors LLC boosted its position in Red Cat by 30.0% during the first quarter. U.S. Capital Wealth Advisors LLC now owns 14,070 shares of the company's stock valued at $83,000 after purchasing an additional 3,250 shares during the last quarter. Western Wealth Management LLC boosted its position in Red Cat by 18.1% during the first quarter. Western Wealth Management LLC now owns 23,500 shares of the company's stock valued at $138,000 after purchasing an additional 3,600 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. lifted its position in shares of Red Cat by 4.0% in the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 120,297 shares of the company's stock worth $707,000 after buying an additional 4,587 shares during the last quarter. Institutional investors and hedge funds own 37.97% of the company's stock.

Red Cat Stock Up 10.0%

Shares of Red Cat stock traded up $0.89 during midday trading on Tuesday, hitting $9.72. The company's stock had a trading volume of 12,351,130 shares, compared to its average volume of 7,596,826. The firm has a market capitalization of $893.59 million, a P/E ratio of -18.01 and a beta of 1.44. The stock has a 50-day simple moving average of $8.07 and a 200-day simple moving average of $7.21. Red Cat has a 1-year low of $1.85 and a 1-year high of $15.27.

Red Cat (NASDAQ:RCAT - Get Free Report) last issued its earnings results on Wednesday, May 14th. The company reported ($0.27) EPS for the quarter, missing the consensus estimate of ($0.10) by ($0.17). As a group, sell-side analysts predict that Red Cat will post -0.5 earnings per share for the current year.

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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