Stock Traders Buy High Volume of Call Options on Red Cat (NASDAQ:RCAT)

Red Cat Holdings, Inc. (NASDAQ:RCAT) was the recipient of unusually large options trading activity on Tuesday. Traders acquired 33,080 call options on the company. This represents an increase of 215% compared to the typical daily volume of 10,502 call options.

Red Cat Stock Performance

Shares of NASDAQ RCAT opened at $14.09 on Tuesday. The stock has a 50 day moving average price of $6.79 and a 200 day moving average price of $3.90. The firm has a market capitalization of $1.13 billion, a price-to-earnings ratio of -30.63 and a beta of 1.33. Red Cat has a 52-week low of $0.56 and a 52-week high of $14.91.

Red Cat (NASDAQ:RCAT) last posted its earnings results on Monday, December 16th. The company reported ($0.18) EPS for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.27). Red Cat had a negative net margin of 162.50% and a negative return on equity of 66.19%. During the same quarter in the previous year, the company posted ($0.11) EPS. Analysts forecast that Red Cat will post -0.39 earnings per share for the current year.

Insider Transactions at Red Cat

In related news, Director Joseph David Freedman sold 15,000 shares of the stock in a transaction on Monday, December 30th. The stock was sold at an average price of $14.24, for a total transaction of $213,600.00. Following the sale, the director now owns 585,190 shares in the company, valued at approximately $8,333,105.60. This represents a 2.50 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Jeffrey M. Thompson sold 392,551 shares of the stock in a transaction on Monday, December 23rd. The shares were sold at an average price of $11.34, for a total transaction of $4,451,528.34. Following the completion of the sale, the chief executive officer now directly owns 13,121,898 shares in the company, valued at approximately $148,802,323.32. This represents a 2.90 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,930,441 shares of company stock worth $21,099,751 in the last three months. Insiders own 21.50% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the company. Renaissance Technologies LLC acquired a new position in shares of Red Cat in the 2nd quarter valued at $267,000. Corsair Capital Management L.P. acquired a new stake in shares of Red Cat during the third quarter worth about $308,000. Wolverine Trading LLC purchased a new stake in Red Cat in the third quarter valued at approximately $233,000. Centiva Capital LP purchased a new stake in Red Cat in the third quarter valued at approximately $207,000. Finally, State Street Corp increased its holdings in Red Cat by 44.9% in the 3rd quarter. State Street Corp now owns 221,958 shares of the company’s stock worth $564,000 after buying an additional 68,800 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.