Red Cat (NASDAQ:RCAT) Trading 10.7% Higher – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT) was up 10.7% on Tuesday . The company traded as high as $9.58 and last traded at $9.77. Approximately 3,069,887 shares were traded during mid-day trading, a decline of 69% from the average daily volume of 9,906,896 shares. The stock had previously closed at $8.82.

Red Cat Stock Up 13.0 %

The company has a debt-to-equity ratio of 0.30, a current ratio of 1.43 and a quick ratio of 0.60. The stock has a 50-day moving average price of $10.00 and a 200-day moving average price of $5.57. The company has a market capitalization of $798.63 million, a P/E ratio of -18.42 and a beta of 1.24.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings data 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 232.62% and a negative return on equity of 96.00%. During the same period last year, the firm posted ($0.11) earnings per share. On average, research analysts predict that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Insider Activity at Red Cat

In other news, insider George Michael Matus sold 112,686 shares of the stock in a transaction that occurred on Wednesday, December 18th. The stock was sold at an average price of $9.20, for a total transaction of $1,036,711.20. Following the completion of the sale, the insider now owns 973,103 shares of the company’s stock, valued at approximately $8,952,547.60. This represents a 10.38 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Joseph David Freedman sold 50,000 shares of Red Cat stock in a transaction that occurred on Friday, December 20th. The stock was sold at an average price of $10.00, for a total value of $500,000.00. Following the completion of the sale, the director now owns 635,190 shares in the company, valued at approximately $6,351,900. This represents a 7.30 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, 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

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Sanctuary Advisors LLC purchased a new stake in Red Cat in the 3rd quarter worth $25,000. Sheets Smith Wealth Management bought a new position in Red Cat in the third quarter worth approximately $51,000. United Capital Management of KS Inc. bought a new stake in shares of Red Cat in the 3rd quarter valued at about $108,000. Regency Capital Management Inc. DE bought a new stake in Red Cat during the fourth quarter valued at about $130,000. Finally, Atria Wealth Solutions Inc. acquired a new position in shares of Red Cat during the fourth quarter worth $134,000. 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.