Investors Buy High 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 bought 30,124 call options on the company. Thisisanincreaseofapproximately80% compared to the average daily volume of 16,695 call options.

Analyst Upgrades and Downgrades

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

Red Cat Trading Up 1.8%

Red Cat stock traded up $0.17 during mid-day trading on Friday, hitting $9.50. 2,539,151 shares of the company's stock were exchanged, compared to its average volume of 7,583,088. Red Cat has a 1-year low of $2.01 and a 1-year high of $15.27. The stock has a 50 day moving average of $8.27 and a two-hundred day moving average of $7.25. The stock has a market cap of $873.86 million, a P/E ratio of -17.82 and a beta of 1.44.

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

Insider Transactions at Red Cat

In other Red Cat news, Director Joseph David Freedman sold 150,000 shares of the company's stock in a transaction that occurred 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 transaction, the director directly owned 165,260 shares of the company's stock, valued at $1,217,966.20. This represents a 47.58% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Nicholas Reyland Liuzza, Jr. sold 100,309 shares of the stock in a transaction dated Wednesday, May 21st. The stock was sold at an average price of $6.70, for a total transaction of $672,070.30. Following the transaction, the director directly owned 387,445 shares in the company, valued at $2,595,881.50. The trade was a 20.57% decrease in their position. The disclosure for this sale can be found here. Insiders sold 350,309 shares of company stock valued at $2,635,570 in the last three months. 15.30% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Bank of America Corp DE raised its stake in shares of Red Cat by 407.0% in the fourth quarter. Bank of America Corp DE now owns 3,397 shares of the company's stock valued at $44,000 after acquiring an additional 2,727 shares during the last quarter. Squarepoint Ops LLC increased its holdings in shares of Red Cat by 23.0% in the fourth quarter. Squarepoint Ops LLC now owns 15,496 shares of the company's stock worth $199,000 after acquiring an additional 2,902 shares in the last quarter. U.S. Capital Wealth Advisors LLC boosted its position in shares of 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 worth $83,000 after buying an additional 3,250 shares during the period. Western Wealth Management LLC raised its position in Red Cat by 18.1% in the 1st quarter. Western Wealth Management LLC now owns 23,500 shares of the company's stock valued at $138,000 after buying an additional 3,600 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. lifted its stake in Red Cat by 4.0% in the 1st quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 120,297 shares of the company's stock valued at $707,000 after acquiring an additional 4,587 shares in the last quarter. 37.97% of the stock is currently owned by institutional investors and hedge funds.

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.