Investors Purchase Large Volume of Red Cat Call Options (NASDAQ:RCAT)

Red Cat Holdings, Inc. (NASDAQ:RCAT) saw some unusual options trading activity on Tuesday. Stock traders bought 33,080 call options on the stock. This represents an increase of approximately 215% compared to the average volume of 10,502 call options.

Insider Activity at Red Cat

In other news, insider George Michael Matus sold 112,686 shares of Red Cat stock in a transaction that occurred on Wednesday, December 18th. The stock was sold at an average price of $9.20, for a total value of $1,036,711.20. Following the sale, the insider now directly owns 973,103 shares of the company’s stock, valued at $8,952,547.60. The trade was a 10.38 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the company’s stock in a transaction on Wednesday, December 18th. The stock was sold at an average price of $8.29, for a total transaction of $2,726,813.12. Following the sale, the director now directly owns 681,072 shares of the company’s stock, valued at $5,646,086.88. The trade was a 32.57 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 1,930,441 shares of company stock worth $21,099,751. 21.50% of the stock is owned by company insiders.

Institutional Trading of Red Cat

Several institutional investors have recently made changes to their positions in the company. Renaissance Technologies LLC acquired a new position in Red Cat in the second quarter valued at about $267,000. XTX Topco Ltd lifted its holdings in shares of Red Cat by 390.9% in the 2nd quarter. XTX Topco Ltd now owns 58,895 shares of the company’s stock worth $68,000 after acquiring an additional 46,897 shares during the last quarter. PVG Asset Management Corp purchased a new position in shares of Red Cat during the 2nd quarter worth approximately $63,000. Sheets Smith Wealth Management acquired a new stake in Red Cat in the 3rd quarter valued at approximately $51,000. Finally, United Capital Management of KS Inc. acquired a new position in Red Cat during the third quarter worth $108,000. Hedge funds and other institutional investors own 37.97% of the company’s stock.

Red Cat Trading Up 14.9 %

RCAT opened at $14.09 on Tuesday. The firm has a market capitalization of $1.13 billion, a PE ratio of -30.63 and a beta of 1.33. Red Cat has a twelve month low of $0.56 and a twelve month high of $14.91. The firm’s 50-day moving average price is $6.79 and its 200 day moving average price is $3.90.

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 return on equity of 66.19% and a negative net margin of 162.50%. During the same period in the previous year, the company posted ($0.11) EPS. As a group, analysts predict that Red Cat will post -0.39 earnings per share for the current fiscal year.

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.