Stock Traders Buy High Volume of Red Cat Call Options (NASDAQ:RCAT)

Red Cat Holdings, Inc. (NASDAQ:RCAT) was the target of some unusual options trading activity on Tuesday. Traders acquired 33,080 call options on the company. This represents an increase of approximately 215% compared to the average volume of 10,502 call options.

Insider Buying and Selling at Red Cat

In related news, insider George Michael Matus sold 112,686 shares of the firm’s 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 directly owns 973,103 shares of the company’s stock, valued at approximately $8,952,547.60. This trade represents a 10.38 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Joseph David Freedman sold 50,000 shares of the company’s stock in a transaction on Friday, December 20th. The shares were sold at an average price of $10.00, for a total value of $500,000.00. Following the completion of the transaction, the director now directly owns 635,190 shares in the company, valued at $6,351,900. This trade represents a 7.30 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 1,930,441 shares of company stock worth $21,099,751 over the last quarter. Insiders own 21.50% of the company’s stock.

Hedge Funds Weigh In On Red Cat

Several institutional investors have recently made changes to their positions in the company. Sanctuary Advisors LLC bought a new position in Red Cat during the 3rd quarter worth about $25,000. Sheets Smith Wealth Management bought a new position in shares of Red Cat during the third quarter valued at approximately $51,000. United Capital Management of KS Inc. bought a new position in Red Cat in the third quarter worth approximately $108,000. Pekin Hardy Strauss Inc. bought a new position in Red Cat in the third quarter worth approximately $138,000. Finally, PVG Asset Management Corp bought a new stake in Red Cat during the 2nd quarter valued at $63,000. Hedge funds and other institutional investors own 37.97% of the company’s stock.

Red Cat Price Performance

Red Cat stock opened at $12.85 on Thursday. The stock has a market cap of $1.03 billion, a price-to-earnings ratio of -27.93 and a beta of 1.33. The firm has a 50-day moving average of $7.21 and a two-hundred day moving average of $4.08. Red Cat has a 1 year low of $0.56 and a 1 year high of $14.91.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings data on Monday, December 16th. The company reported ($0.18) earnings per share (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 period in the prior year, the firm posted ($0.11) earnings per share. Research analysts expect that Red Cat will post -0.39 earnings per share for the current 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.