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

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) 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 changing hands.

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

Insider Buying and Selling 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 directly owned 73,073 shares of the company’s stock, valued at $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 is available through this link. Insiders have sold 86,833 shares of company stock worth $861,560 over the last three months. 15.30% of the stock is owned by insiders.

Institutional Investors Weigh In On Red Cat

A number of hedge funds have recently modified their holdings of the business. Bank of America Corp DE raised its holdings 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. SBI Securities Co. Ltd. increased its position in Red Cat by 104.4% in the first quarter. SBI Securities Co. Ltd. now owns 9,467 shares of the company’s stock worth $56,000 after buying an additional 4,835 shares in the last quarter. XTX Topco Ltd bought a new position in shares of Red Cat in the first quarter worth about $229,000. Baader Bank Aktiengesellschaft purchased a new position in shares of Red Cat during the 1st quarter valued at about $89,000. Finally, Moors & Cabot Inc. grew its stake in shares of Red Cat by 293.0% during the 1st quarter. Moors & Cabot Inc. now owns 169,600 shares of the company’s stock valued at $997,000 after acquiring an additional 126,450 shares during the period. Institutional investors own 37.97% of the company’s stock.

Red Cat Trading Down 6.0%

The stock has a 50 day moving average of $11.02 and a 200-day moving average of $8.98. The company has a market capitalization of $858.29 million, a P/E ratio of -15.84 and a beta of 1.45.

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.