Red Cat (NASDAQ:RCAT) Shares Gap Down on Analyst Downgrade

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares gapped down before the market opened on Friday after Needham & Company LLC lowered their price target on the stock from $17.00 to $12.00. The stock had previously closed at $7.74, but opened at $6.75. Needham & Company LLC currently has a buy rating on the stock. Red Cat shares last traded at $7.3950, with a volume of 9,157,853 shares trading hands.

Several other equities research analysts have also recently issued reports on the stock. Northland Securities set a $16.00 price objective on shares of Red Cat in a research report on Friday, August 15th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Red Cat in a research note on Wednesday, October 8th. Wall Street Zen downgraded shares of Red Cat from a “hold” rating to a “sell” rating in a report on Saturday, October 4th. Finally, LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a report on Thursday, October 2nd. Two analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Buy” and an average price target of $14.00.

Insider Activity at Red Cat

In other news, Director Christopher R. Moe sold 30,000 shares of the stock in a transaction on Thursday, September 11th. The stock was sold at an average price of $10.11, for a total transaction of $303,300.00. Following the transaction, the director owned 73,073 shares of the company’s stock, valued at approximately $738,768.03. This represents a 29.11% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders have sold 86,833 shares of company stock valued at $861,560 in the last quarter. Corporate insiders own 15.30% of the company’s stock.

Institutional Investors Weigh In On Red Cat

A number of hedge funds and other institutional investors have recently bought and sold shares of RCAT. VestGen Advisors LLC raised its stake in Red Cat by 4.9% in the second quarter. VestGen Advisors LLC now owns 23,625 shares of the company’s stock valued at $172,000 after buying an additional 1,097 shares during the last quarter. AlphaQuest LLC boosted its stake in Red Cat by 17.4% in the 3rd quarter. AlphaQuest LLC now owns 10,839 shares of the company’s stock worth $112,000 after purchasing an additional 1,608 shares in the last quarter. Toth Financial Advisory Corp increased its stake in Red Cat by 7.2% during the 3rd quarter. Toth Financial Advisory Corp now owns 29,800 shares of the company’s stock valued at $308,000 after purchasing an additional 2,000 shares in the last quarter. Bank of America Corp DE raised its holdings 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 worth $44,000 after buying an additional 2,727 shares during the last quarter. Finally, Montag A & Associates Inc. lifted its stake in shares of Red Cat by 552.0% during the third quarter. Montag A & Associates Inc. now owns 3,260 shares of the company’s stock worth $34,000 after buying an additional 2,760 shares during the period. Hedge funds and other institutional investors own 37.97% of the company’s stock.

Red Cat Price Performance

The stock has a market capitalization of $858.29 million, a PE ratio of -15.84 and a beta of 1.45. The business’s fifty day moving average price is $11.02 and its two-hundred day moving average price is $8.98.

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.