Red Cat (NASDAQ:RCAT) Shares Gap Up – Here’s What Happened

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) gapped up before the market opened on Tuesday . The stock had previously closed at $9.33, but opened at $9.89. Red Cat shares last traded at $10.00, with a volume of 1,320,100 shares traded.

Red Cat Trading Up 7.0 %

The firm’s fifty day simple moving average is $8.83 and its two-hundred day simple moving average is $4.78. The company has a market capitalization of $800.01 million, a price-to-earnings ratio of -21.70 and a beta of 1.32.

Red Cat (NASDAQ:RCAT) last issued 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 66.19% and a negative net margin of 162.50%. During the same period in the previous year, the business earned ($0.11) earnings per share. As a group, analysts forecast that Red Cat Holdings, Inc. will post -0.39 EPS for the current fiscal year.

Insider Buying and Selling

In other Red Cat news, Director Joseph David Freedman sold 15,000 shares of the company’s stock in a transaction on Monday, December 30th. The stock was sold at an average price of $14.24, for a total transaction of $213,600.00. Following the transaction, the director now directly owns 585,190 shares in the company, valued at $8,333,105.60. This represents a 2.50 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of Red Cat stock in a transaction on Wednesday, December 18th. The shares were sold at an average price of $8.29, for a total value of $2,726,813.12. Following the completion of the sale, the director now directly owns 681,072 shares of the company’s stock, valued at $5,646,086.88. The trade was a 32.57 % decrease in their ownership of the stock. 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. 21.50% of the stock is currently owned by insiders.

Institutional Trading of Red Cat

Hedge funds have recently made changes to their positions in the business. Renaissance Technologies LLC purchased a new stake in Red Cat during the 2nd quarter worth approximately $267,000. Corsair Capital Management L.P. purchased a new stake in shares of Red Cat during the third quarter worth $308,000. Wolverine Trading LLC acquired a new stake in shares of Red Cat in the third quarter valued at $233,000. Centiva Capital LP purchased a new position in Red Cat in the third quarter valued at $207,000. Finally, State Street Corp grew its stake in Red Cat by 44.9% during the 3rd 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. 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.