Red Cat (NASDAQ:RCAT) Shares Gap Up – Still a Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price gapped up before the market opened on Friday . The stock had previously closed at $11.93, but opened at $12.32. Red Cat shares last traded at $13.01, with a volume of 2,269,276 shares changing hands.

Red Cat Trading Up 10.6 %

The company’s fifty day simple moving average is $7.80 and its 200 day simple moving average is $4.30. The firm has a market capitalization of $1.06 billion, a P/E ratio of -28.70 and a beta of 1.33.

Red Cat (NASDAQ:RCAT) last issued 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 return on equity of 66.19% and a negative net margin of 162.50%. During the same quarter in the previous year, the business earned ($0.11) earnings per share. On average, analysts predict that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Jeffrey M. Thompson sold 392,551 shares of the firm’s stock in a transaction that occurred on Monday, December 23rd. The stock was sold at an average price of $11.34, for a total transaction of $4,451,528.34. Following the completion of the transaction, the chief executive officer now owns 13,121,898 shares of the company’s stock, valued at $148,802,323.32. This trade represents a 2.90 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of the business’s stock in a transaction on Friday, December 20th. The stock was sold at an average price of $10.44, for a total value 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 over the last ninety days. Company insiders own 21.50% of the company’s stock.

Hedge Funds Weigh In On Red Cat

Several large investors have recently modified their holdings of RCAT. Sanctuary Advisors LLC bought a new position in shares of Red Cat in the third quarter worth approximately $25,000. Sheets Smith Wealth Management purchased a new stake in Red Cat during the 3rd quarter valued at $51,000. PVG Asset Management Corp purchased a new stake in Red Cat during the 2nd quarter valued at $63,000. XTX Topco Ltd increased 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 purchasing an additional 46,897 shares in the last quarter. Finally, United Capital Management of KS Inc. purchased a new position in shares of Red Cat in the third quarter worth $108,000. Hedge funds and other institutional investors 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.