Red Cat (NASDAQ:RCAT) Shares Up 4.6% – Should You Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares shot up 4.6% during mid-day trading on Tuesday . The company traded as high as $14.96 and last traded at $14.84. 5,805,888 shares changed hands during trading, a decline of 44% from the average session volume of 10,300,574 shares. The stock had previously closed at $14.19.

Red Cat Trading Down 7.3 %

The company has a 50-day simple moving average of $8.03 and a 200 day simple moving average of $4.42. The company has a market cap of $1.05 billion, a P/E ratio of -28.61 and a beta of 1.32.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings results 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 quarter in the prior year, the firm earned ($0.11) earnings per share. On average, equities analysts forecast that Red Cat Holdings, Inc. will post -0.39 EPS for the current fiscal year.

Insider Transactions at Red Cat

In other news, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the 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 transaction, the director now owns 681,072 shares of the company’s stock, valued at approximately $5,646,086.88. This represents a 32.57 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Joseph David Freedman sold 15,000 shares of the firm’s stock in a transaction on Monday, December 30th. The shares were sold at an average price of $14.24, for a total value of $213,600.00. Following the transaction, the director now owns 585,190 shares in the company, valued at approximately $8,333,105.60. This represents a 2.50 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 1,930,441 shares of company stock valued at $21,099,751. 21.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Red Cat

A number of large investors have recently added to or reduced their stakes in RCAT. Renaissance Technologies LLC bought a new stake in shares of Red Cat in the 2nd quarter valued at about $267,000. Corsair Capital Management L.P. acquired a new stake in Red Cat in the third quarter valued at approximately $308,000. Wolverine Trading LLC purchased a new position in Red Cat in the third quarter worth $233,000. Centiva Capital LP acquired a new position in shares of Red Cat during the third quarter worth $207,000. Finally, State Street Corp increased its position in shares of Red Cat by 44.9% during the third quarter. State Street Corp now owns 221,958 shares of the company’s stock worth $564,000 after purchasing an additional 68,800 shares in the last quarter. 37.97% of the stock is currently owned by institutional investors.

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.