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

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) gapped up prior to trading on Wednesday . The stock had previously closed at $8.46, but opened at $8.92. Red Cat shares last traded at $8.72, with a volume of 3,049,830 shares.

Red Cat Stock Performance

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 stock’s 50 day simple moving average is $9.70 and its two-hundred day simple moving average is $5.17.

Red Cat (NASDAQ:RCAT) last issued its earnings results on Monday, December 16th. The company reported ($0.18) earnings per share 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 last year, the business earned ($0.11) EPS. On average, sell-side analysts anticipate that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Insider Transactions at Red Cat

In other Red Cat news, Director Joseph David Freedman sold 50,000 shares of the business’s stock in a transaction on Friday, December 20th. The stock was sold at an average price of $10.00, for a total value of $500,000.00. Following the transaction, the director now owns 635,190 shares of the company’s stock, valued at approximately $6,351,900. The trade was a 7.30 % 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 hyperlink. 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 sale, the director now directly owns 681,072 shares in the company, valued at approximately $5,646,086.88. This represents a 32.57 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 1,930,441 shares of company stock valued at $21,099,751. Corporate insiders own 21.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of RCAT. Renaissance Technologies LLC acquired a new stake in shares of Red Cat in the 2nd quarter valued at $267,000. Corsair Capital Management L.P. bought a new position in Red Cat in the third quarter valued at about $308,000. Wolverine Trading LLC acquired a new stake in Red Cat in the third quarter worth about $233,000. Centiva Capital LP bought a new stake in Red Cat during the 3rd quarter worth about $207,000. Finally, State Street Corp lifted its position in Red Cat by 44.9% during the 3rd quarter. State Street Corp now owns 221,958 shares of the company’s stock valued at $564,000 after purchasing an additional 68,800 shares during the period. 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.