Red Cat (NASDAQ:RCAT) Trading 14.2% Higher – Should You Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares shot up 14.2% during mid-day trading on Friday . The stock traded as high as $9.83 and last traded at $9.49. 7,276,086 shares were traded during mid-day trading, a decline of 32% from the average session volume of 10,712,833 shares. The stock had previously closed at $8.31.

Red Cat Stock Up 3.9 %

The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.60 and a current ratio of 1.43. The firm’s fifty day simple moving average is $9.78 and its 200 day simple moving average is $5.25. The stock has a market capitalization of $691.78 million, a price-to-earnings ratio of -15.98 and a beta of 1.32.

Red Cat (NASDAQ:RCAT) last posted 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 net margin of 232.62% and a negative return on equity of 96.00%. During the same quarter in the prior year, the firm earned ($0.11) earnings per share. On average, sell-side analysts forecast that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Insider Buying and Selling

In other Red Cat news, insider George Michael Matus sold 112,686 shares of the business’s stock in a transaction dated Wednesday, December 18th. The shares were sold at an average price of $9.20, for a total transaction 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 position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the stock in a transaction dated 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 ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 1,930,441 shares of company stock worth $21,099,751. 21.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Sanctuary Advisors LLC bought a new position in shares of Red Cat in the third quarter valued at $25,000. Regency Capital Management Inc. DE acquired a new stake in Red Cat in the fourth quarter valued at $130,000. U.S. Capital Wealth Advisors LLC bought a new position in shares of Red Cat in the 4th quarter valued at about $139,000. Myecfo LLC acquired a new position in shares of Red Cat during the 4th quarter worth about $193,000. Finally, Sheets Smith Wealth Management bought a new stake in shares of Red Cat in the 3rd quarter valued at about $51,000. Institutional investors and hedge funds 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.