Red Cat (NASDAQ:RCAT) Trading Up 3.1% – Still a Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price shot up 3.1% during trading on Friday . The company traded as high as $9.38 and last traded at $9.37. Approximately 803,396 shares changed hands during trading, a decline of 58% from the average daily volume of 1,931,903 shares. The stock had previously closed at $9.09.

Red Cat Stock Performance

The stock has a market capitalization of $861.73 million, a price-to-earnings ratio of -23.37 and a beta of 1.33. The company has a fifty day simple moving average of $5.91 and a two-hundred day simple moving average of $3.48.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings data on Monday, December 16th. The company reported ($0.18) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.27). Red Cat had a negative return on equity of 66.19% and a negative net margin of 162.50%. During the same quarter last year, the company earned ($0.11) EPS. As a group, equities analysts anticipate that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Joseph David Freedman sold 50,000 shares of Red Cat stock in a transaction that occurred on Friday, December 20th. The shares were sold at an average price of $10.00, for a total transaction of $500,000.00. Following the sale, the director now directly owns 635,190 shares of the company’s stock, valued at approximately $6,351,900. The trade was a 7.30 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider George Michael Matus sold 112,686 shares of Red Cat stock in a transaction that occurred on Wednesday, December 18th. The shares were sold at an average price of $9.20, for a total transaction of $1,036,711.20. Following the sale, the insider now directly owns 973,103 shares in the company, valued at $8,952,547.60. This trade represents a 10.38 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 491,614 shares of company stock worth $4,263,524 over the last three months. Insiders own 21.50% of the company’s stock.

Institutional Trading of Red Cat

A number of hedge funds and other institutional investors have recently modified their holdings of RCAT. Sanctuary Advisors LLC acquired a new stake in shares of Red Cat during the 3rd quarter valued at $25,000. Sheets Smith Wealth Management acquired a new stake in shares of Red Cat during the third quarter valued at about $51,000. PVG Asset Management Corp bought a new stake in shares of Red Cat during the second quarter worth about $63,000. XTX Topco Ltd grew its holdings in shares of Red Cat by 390.9% during the second quarter. XTX Topco Ltd now owns 58,895 shares of the company’s stock worth $68,000 after purchasing an additional 46,897 shares during the last quarter. Finally, United Capital Management of KS Inc. acquired a new position in shares of Red Cat in the third quarter valued at approximately $108,000. Institutional investors own 37.97% of the company’s stock.

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.