Red Cat (NASDAQ:RCAT) Shares Up 4.6% – Here’s Why

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 Stock Performance

The company has a market capitalization of $948.30 million, a price-to-earnings ratio of -25.72 and a beta of 1.32. The company has a 50-day moving average price of $8.40 and a 200-day moving average price of $4.55.

Red Cat (NASDAQ:RCAT) last posted 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 return on equity of 66.19% and a negative net margin of 162.50%. During the same quarter last year, the business earned ($0.11) earnings per share. As a group, sell-side analysts anticipate that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the business’s stock in a transaction on Wednesday, December 18th. The shares were sold at an average price of $8.29, for a total transaction of $2,726,813.12. Following the transaction, the director now directly owns 681,072 shares in the company, valued at approximately $5,646,086.88. The trade was a 32.57 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider George Michael Matus sold 112,686 shares of the firm’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 completion of the sale, the insider now owns 973,103 shares of the company’s stock, valued at $8,952,547.60. This trade represents a 10.38 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 1,930,441 shares of company stock worth $21,099,751. Company insiders own 21.50% of the company’s stock.

Hedge Funds Weigh In On Red Cat

Several institutional investors and hedge funds have recently modified their holdings of the stock. Sanctuary Advisors LLC acquired a new position in Red Cat in the 3rd quarter valued at $25,000. Sheets Smith Wealth Management acquired a new position in shares of Red Cat in the third quarter valued at about $51,000. United Capital Management of KS Inc. bought a new position in Red Cat during the third quarter worth about $108,000. XTX Topco Ltd raised its stake in Red Cat by 390.9% in the 2nd quarter. XTX Topco Ltd now owns 58,895 shares of the company’s stock worth $68,000 after purchasing an additional 46,897 shares in the last quarter. Finally, Pekin Hardy Strauss Inc. acquired a new stake in shares of Red Cat in the third quarter valued at approximately $138,000. 37.97% of the stock is currently 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.