Red Cat (NASDAQ:RCAT) Trading 0% Higher – Time to Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shot up 0% on Wednesday . The company traded as high as $9.87 and last traded at $9.26. 4,996,983 shares changed hands during mid-day trading, a decline of 52% from the average session volume of 10,422,772 shares. The stock had previously closed at $9.26.

Red Cat Price Performance

The company has a quick ratio of 0.60, a current ratio of 1.43 and a debt-to-equity ratio of 0.30. The firm has a market capitalization of $757.51 million, a price-to-earnings ratio of -17.57 and a beta of 1.32. The stock’s 50 day moving average price is $9.93 and its two-hundred day moving average price is $5.37.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings results on Monday, December 16th. The company reported ($0.18) earnings per share for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.27). Red Cat had a negative return on equity of 96.00% and a negative net margin of 232.62%. During the same quarter last year, the company earned ($0.11) earnings per share. Analysts anticipate that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Joseph David Freedman sold 15,000 shares of the company’s stock in a transaction on Monday, December 30th. The shares were sold at an average price of $14.24, for a total value of $213,600.00. Following the completion of the sale, the director now directly owns 585,190 shares in the company, valued at approximately $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 accessible through this link. Also, Director Nicholas Reyland Liuzza, Jr. sold 20,000 shares of the company’s stock in a transaction on Thursday, December 26th. The stock was sold at an average price of $13.92, for a total transaction of $278,400.00. Following the completion of the sale, the director now owns 461,072 shares of the company’s stock, valued at $6,418,122.24. This represents a 4.16 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 1,930,441 shares of company stock worth $21,099,751. Corporate insiders own 21.50% of the company’s stock.

Institutional Investors Weigh In On Red Cat

Hedge funds have recently bought and sold shares of the company. Sanctuary Advisors LLC bought a new stake in Red Cat during the third quarter valued at about $25,000. Sheets Smith Wealth Management bought a new stake in Red Cat during the third quarter valued at about $51,000. PVG Asset Management Corp bought a new stake in Red Cat during the second quarter valued at about $63,000. XTX Topco Ltd boosted its holdings in Red Cat by 390.9% during the second quarter. XTX Topco Ltd now owns 58,895 shares of the company’s stock valued at $68,000 after acquiring an additional 46,897 shares during the period. Finally, United Capital Management of KS Inc. bought a new stake in Red Cat during the third quarter valued at about $108,000. 37.97% of the stock is currently owned by institutional investors.

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.