Red Cat (NASDAQ:RCAT) Shares Down 5.4% – Should You Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price traded down 5.4% on Wednesday . The company traded as low as $5.75 and last traded at $5.83. 830,591 shares changed hands during trading, a decline of 79% from the average session volume of 3,914,611 shares. The stock had previously closed at $6.16.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on RCAT. Northland Capmk upgraded Red Cat to a “strong-buy” rating in a research note on Monday, March 10th. Northland Securities initiated coverage on Red Cat in a research report on Tuesday, March 11th. They issued an “outperform” rating and a $13.00 price target on the stock.

Red Cat Stock Performance

The stock’s 50-day simple moving average is $7.45 and its 200 day simple moving average is $6.72. The company has a market capitalization of $513.70 million, a PE ratio of -11.11 and a beta of 1.32. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.60 and a current ratio of 1.43.

Insider Activity at Red Cat

In related news, Director Joseph David Freedman sold 15,000 shares of the company’s stock in a transaction that occurred on Monday, December 30th. The stock was sold at an average price of $14.24, for a total value of $213,600.00. Following the completion of the transaction, the director now directly owns 585,190 shares of the company’s stock, valued at $8,333,105.60. This represents a 2.50 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 21.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Red Cat

Several institutional investors have recently modified their holdings of the stock. Waddell & Associates LLC purchased a new position in shares of Red Cat in the 4th quarter valued at $159,643,000. Rockefeller Capital Management L.P. purchased a new position in shares of Red Cat during the fourth quarter worth about $6,628,000. Captrust Financial Advisors acquired a new stake in shares of Red Cat during the fourth quarter worth about $4,262,000. Apis Capital Advisors LLC lifted its holdings in shares of Red Cat by 61.7% in the 4th quarter. Apis Capital Advisors LLC now owns 650,000 shares of the company’s stock valued at $8,352,000 after purchasing an additional 248,000 shares during the last quarter. Finally, Vanguard Group Inc. boosted its position in shares of Red Cat by 9.0% in the 4th quarter. Vanguard Group Inc. now owns 2,505,613 shares of the company’s stock valued at $32,197,000 after purchasing an additional 207,727 shares during the period. Hedge funds and other institutional investors own 37.97% of the company’s stock.

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.