Red Cat (NASDAQ:RCAT) Trading 15.3% Higher – Should You Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price traded up 15.3% on Friday . The company traded as high as $13.88 and last traded at $13.76. 6,111,309 shares changed hands during mid-day trading, a decline of 10% from the average session volume of 6,801,337 shares. The stock had previously closed at $11.93.

Red Cat Trading Up 10.6 %

The company has a fifty day moving average of $7.80 and a 200-day moving average of $4.30. The company has a market capitalization of $1.06 billion, a price-to-earnings ratio of -28.70 and a beta of 1.33.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings results on Monday, December 16th. The company reported ($0.18) earnings per share (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 last year, the business earned ($0.11) earnings per share. As a group, equities research analysts expect that Red Cat Holdings, Inc. will post -0.39 EPS for the current year.

Insider Transactions at Red Cat

In related news, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the stock in a transaction that occurred on Wednesday, December 18th. The stock was sold at an average price of $8.29, for a total value of $2,726,813.12. Following the completion of the sale, the director now owns 681,072 shares of the company’s stock, valued at approximately $5,646,086.88. This trade represents a 32.57 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Joseph David Freedman sold 15,000 shares of the business’s stock in a transaction on Monday, December 30th. The stock was sold at an average price of $14.24, for a total value of $213,600.00. Following the transaction, the director now directly owns 585,190 shares in the company, valued at $8,333,105.60. This trade represents a 2.50 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 1,930,441 shares of company stock valued at $21,099,751 over the last 90 days. 21.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Red Cat

Hedge funds and other institutional investors have recently modified their holdings of the stock. Centiva Capital LP purchased a new stake in shares of Red Cat in the third quarter valued at about $207,000. Wolverine Trading LLC acquired a new position in Red Cat in the 3rd quarter valued at about $233,000. Corsair Capital Management L.P. purchased a new stake in shares of Red Cat in the 3rd quarter valued at approximately $308,000. Pekin Hardy Strauss Inc. acquired a new stake in shares of Red Cat during the 3rd quarter worth approximately $138,000. Finally, State Street Corp increased its holdings in shares of Red Cat by 44.9% during the 3rd quarter. State Street Corp now owns 221,958 shares of the company’s stock worth $564,000 after buying an additional 68,800 shares during the last quarter. 37.97% of the stock is owned by institutional investors and hedge funds.

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.