Red Cat (NASDAQ:RCAT) Trading 6.5% Higher – Time to Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT) was up 6.5% during trading on Tuesday . The stock traded as high as $10.20 and last traded at $9.94. Approximately 3,007,844 shares were traded during trading, a decline of 70% from the average daily volume of 9,900,755 shares. The stock had previously closed at $9.33.

Red Cat Stock Down 7.4 %

The company’s fifty day simple moving average is $9.10 and its 200-day simple moving average is $4.88. The firm has a market capitalization of $809.62 million, a PE ratio of -18.70 and a beta of 1.32. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.43 and a quick ratio of 0.60.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings data on Monday, December 16th. The company reported ($0.18) EPS for the quarter, missing the consensus estimate of $0.09 by ($0.27). Red Cat had a negative net margin of 232.62% and a negative return on equity of 96.00%. During the same quarter in the previous year, the business earned ($0.11) earnings per share. On average, analysts forecast that Red Cat Holdings, Inc. will post -0.5 EPS for the current year.

Insider Activity at Red Cat

In other Red Cat news, insider George Michael Matus sold 309,491 shares of the firm’s stock in a transaction that occurred on Thursday, December 26th. The shares were sold at an average price of $14.27, for a total transaction of $4,416,436.57. Following the completion of the transaction, the insider now directly owns 304,406 shares of the company’s stock, valued at approximately $4,343,873.62. This trade represents a 50.41 % decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of the company’s stock in a transaction on Friday, December 20th. The shares were sold at an average price of $10.44, for a total transaction of $1,188,312.12. Following the completion of the sale, the executive now directly owns 558,325 shares in the company, valued at $5,828,913. This trade represents a 16.93 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 1,930,441 shares of company stock valued at $21,099,751 in the last ninety days. Company insiders own 21.50% of the company’s stock.

Institutional Trading of Red Cat

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