Wall Street Zen Downgrades Red Cat (NASDAQ:RCAT) to Sell

Key Points

• Wall Street Zen has downgraded Red Cat (NASDAQ:RCAT) from a "hold" rating to a "sell" rating, indicating a negative shift in their outlook for the company.
• Red Cat currently holds a consensus rating of "Moderate Buy" along with a price target of $16.50, amidst varying ratings from other analysts.
• In a significant insider transaction, Director Christopher R. Moe sold 30,000 shares of the stock, reducing his ownership by 29.11% and raising concerns about insider confidence.

Red Cat (NASDAQ:RCAT - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday.

A number of other equities research analysts have also issued reports on RCAT. Weiss Ratings restated a "sell (d-)" rating on shares of Red Cat in a research note on Saturday, September 27th. Northland Securities set a $16.00 target price on shares of Red Cat in a research note on Friday, August 15th. Finally, Needham & Company LLC initiated coverage on shares of Red Cat in a research note on Friday. They issued a "buy" rating and a $17.00 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has given a Sell rating to the stock. According to MarketBeat.com, Red Cat currently has a consensus rating of "Moderate Buy" and a consensus price target of $16.50.

Red Cat Price Performance

NASDAQ:RCAT opened at $12.89 on Friday. The firm has a 50-day moving average of $9.64 and a two-hundred day moving average of $7.85. The stock has a market cap of $1.52 billion, a P/E ratio of -23.87 and a beta of 1.45. Red Cat has a 1-year low of $2.66 and a 1-year high of $15.27.

Insider Activity

In other news, Director Christopher R. Moe sold 30,000 shares of the stock in a transaction that occurred on Thursday, September 11th. The shares were sold at an average price of $10.11, for a total value of $303,300.00. Following the completion of the transaction, the director directly owned 73,073 shares in the company, valued at $738,768.03. This trade represents a 29.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders have sold 86,833 shares of company stock valued at $861,560 in the last ninety days. Company insiders own 15.30% of the company's stock.

Institutional Trading of Red Cat

Large investors have recently added to or reduced their stakes in the business. California State Teachers Retirement System bought a new stake in Red Cat during the second quarter worth approximately $34,000. Caitong International Asset Management Co. Ltd boosted its stake in Red Cat by 28,681.0% in the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 6,044 shares of the company's stock worth $44,000 after purchasing an additional 6,023 shares during the period. Bank of America Corp DE boosted its stake in Red Cat by 407.0% in the 4th quarter. Bank of America Corp DE now owns 3,397 shares of the company's stock worth $44,000 after purchasing an additional 2,727 shares during the period. BNP Paribas Financial Markets boosted its stake in Red Cat by 1,537.2% in the 2nd quarter. BNP Paribas Financial Markets now owns 7,220 shares of the company's stock worth $53,000 after purchasing an additional 6,779 shares during the period. Finally, SBI Securities Co. Ltd. boosted its stake in Red Cat by 104.4% in the 1st quarter. SBI Securities Co. Ltd. now owns 9,467 shares of the company's stock worth $56,000 after purchasing an additional 4,835 shares during the period. 37.97% of the stock is currently owned by institutional investors.

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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