Red Cat (NASDAQ:RCAT) Trading Up 17.1% – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT) was up 17.1% during trading on Wednesday . The stock traded as high as $11.14 and last traded at $10.97. Approximately 5,516,855 shares changed hands during trading, a decline of 44% from the average daily volume of 9,852,533 shares. The stock had previously closed at $9.37.

Red Cat Price Performance

The business has a 50-day moving average price of $9.23 and a two-hundred day moving average price of $4.91. The company has a quick ratio of 0.60, a current ratio of 1.43 and a debt-to-equity ratio of 0.30. The company has a market capitalization of $686.17 million, a price-to-earnings ratio of -15.85 and a beta of 1.32.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings data 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 96.00% and a negative net margin of 232.62%. During the same quarter last year, the company posted ($0.11) EPS. As a group, research analysts anticipate that Red Cat Holdings, Inc. will post -0.5 EPS for the current year.

Insider Activity at Red Cat

In other news, CEO Jeffrey M. Thompson sold 392,551 shares of the stock in a transaction dated Monday, December 23rd. The shares were sold at an average price of $11.34, for a total value of $4,451,528.34. Following the completion of the sale, the chief executive officer now owns 13,121,898 shares in the company, valued at $148,802,323.32. This represents a 2.90 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the business’s 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 in the company, valued at approximately $5,646,086.88. This trade represents a 32.57 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 1,930,441 shares of company stock valued at $21,099,751. 21.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Red Cat

Several hedge funds have recently modified their holdings of the company. Centiva Capital LP purchased a new stake in shares of Red Cat during the third quarter valued at approximately $207,000. Wolverine Trading LLC purchased a new stake in shares of Red Cat during the 3rd quarter valued at $233,000. Corsair Capital Management L.P. bought a new stake in shares of Red Cat during the 3rd quarter worth $308,000. Pekin Hardy Strauss Inc. bought a new stake in shares of Red Cat during the 3rd quarter worth $138,000. Finally, State Street Corp boosted its holdings in shares of Red Cat by 44.9% in the 3rd quarter. State Street Corp now owns 221,958 shares of the company’s stock worth $564,000 after buying an additional 68,800 shares during the last quarter. 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.