Red Cat (NASDAQ:RCAT) Sees Strong Trading Volume – Still a Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares saw unusually-strong trading volume on Tuesday . Approximately 4,470,246 shares were traded during trading, an increase of 112% from the previous session’s volume of 2,107,741 shares.The stock last traded at $11.61 and had previously closed at $11.03.

Red Cat Price Performance

The company has a market cap of $953.11 million, a PE ratio of -25.85 and a beta of 1.33. The stock has a 50 day simple moving average of $6.40 and a two-hundred day simple moving average of $3.72.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings results 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 162.50% and a negative return on equity of 66.19%. During the same quarter in the previous year, the company posted ($0.11) earnings per share. As a group, equities analysts anticipate that Red Cat Holdings, Inc. will post -0.39 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the stock in a transaction dated Wednesday, December 18th. The shares were sold at an average price of $8.29, for a total transaction of $2,726,813.12. Following the completion of the transaction, the director now directly owns 681,072 shares of the company’s stock, valued at $5,646,086.88. This represents a 32.57 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. 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 value of $1,036,711.20. Following the completion of the sale, the insider now directly owns 973,103 shares in the company, valued at $8,952,547.60. This represents a 10.38 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 778,727 shares of company stock valued at $7,117,428. 21.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Renaissance Technologies LLC purchased a new stake in shares of Red Cat during the 2nd quarter worth $267,000. 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 worth $68,000 after buying an additional 46,897 shares in the last quarter. PVG Asset Management Corp acquired a new position in Red Cat during the second quarter worth about $63,000. Sheets Smith Wealth Management acquired a new stake in shares of Red Cat in the 3rd quarter worth approximately $51,000. Finally, United Capital Management of KS Inc. acquired a new stake in Red Cat in the third quarter valued at $108,000. Institutional investors and hedge funds 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.