Red Cat Sees Unusually Large Options Volume (NASDAQ:RCAT)

Red Cat Holdings, Inc. (NASDAQ:RCAT) saw some unusual options trading on Thursday. Stock traders purchased 42,436 call options on the company. This is an increase of 131% compared to the average daily volume of 18,393 call options.

Insider Buying and Selling

In other news, Director Joseph David Freedman sold 150,000 shares of the firm’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 completion of the sale, the director directly owned 165,260 shares of the company’s stock, valued at $1,217,966.20. This trade represents a 47.58% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Christopher R. Moe sold 16,833 shares of Red Cat stock in a transaction that occurred on Thursday, August 21st. The stock was sold at an average price of $9.58, for a total value of $161,260.14. Following the sale, the director directly owned 113,073 shares of the company’s stock, valued at approximately $1,083,239.34. The trade was a 12.96% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 176,833 shares of company stock valued at $1,356,060. Insiders own 15.30% of the company’s stock.

Hedge Funds Weigh In On Red Cat

Hedge funds and other institutional investors have recently modified their holdings of the business. Bank of America Corp DE increased its stake in shares of Red Cat by 407.0% in the 4th 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. California State Teachers Retirement System bought a new position in shares of Red Cat in the 2nd quarter valued at $34,000. Caitong International Asset Management Co. Ltd increased its stake in shares of 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 valued at $44,000 after purchasing an additional 6,023 shares during the last quarter. BNP Paribas Financial Markets increased its stake in shares of Red Cat by 1,537.2% in the 2nd quarter. BNP Paribas Financial Markets now owns 7,220 shares of the company’s stock valued at $53,000 after purchasing an additional 6,779 shares during the last quarter. Finally, Ameritas Investment Partners Inc. bought a new position in shares of Red Cat in the 2nd quarter valued at $56,000. Institutional investors own 37.97% of the company’s stock.

Analysts Set New Price Targets

Several analysts recently weighed in on the company. Northland Securities set a $16.00 price target on Red Cat in a report on Friday, August 15th. Wall Street Zen raised Red Cat from a “sell” rating to a “hold” rating in a report on Saturday, July 26th. One equities research analyst has rated the stock with a Strong Buy rating and one has given a Buy rating to the company’s stock. According to data from MarketBeat.com, Red Cat presently has a consensus rating of “Strong Buy” and an average price target of $16.00.

Red Cat Stock Performance

Shares of RCAT opened at $11.00 on Friday. Red Cat has a 52-week low of $2.31 and a 52-week high of $15.27. The business’s fifty day moving average is $9.09 and its 200-day moving average is $7.27. The firm has a market cap of $1.10 billion, a price-to-earnings ratio of -20.37 and a beta of 1.44.

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.