Red Cat (NASDAQ:RCAT) Stock Price Up 17.1% – Still a Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares were up 17.1% on Wednesday . The company traded as high as $11.14 and last traded at $10.97. Approximately 5,516,855 shares traded hands during mid-day 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 firm has a market cap of $872.15 million, a PE ratio of -23.65 and a beta of 1.32. The business’s 50 day moving average price is $8.95 and its 200 day moving average price is $4.83.

Red Cat (NASDAQ:RCAT) last released its earnings results on Monday, December 16th. The company reported ($0.18) EPS for the quarter, missing analysts’ consensus estimates 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 in the previous year, the firm posted ($0.11) EPS. As a group, analysts predict that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current year.

Insider Transactions at Red Cat

In other news, Director Joseph David Freedman sold 15,000 shares of the business’s stock in a transaction dated Monday, December 30th. The shares were sold at an average price of $14.24, for a total transaction of $213,600.00. Following the completion of the sale, the director now owns 585,190 shares of the company’s stock, valued at $8,333,105.60. The trade was 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 this link. Also, insider George Michael Matus sold 309,491 shares of the business’s stock in a transaction dated Thursday, December 26th. The stock was sold at an average price of $14.27, for a total transaction of $4,416,436.57. Following the sale, the insider now directly owns 304,406 shares of the company’s stock, valued at $4,343,873.62. This represents a 50.41 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 1,930,441 shares of company stock valued at $21,099,751 over the last 90 days. Corporate insiders own 21.50% of the company’s stock.

Hedge Funds Weigh In On Red Cat

Institutional investors and hedge funds have recently bought and sold shares of the business. Sanctuary Advisors LLC acquired a new position in Red Cat during the third quarter worth about $25,000. Sheets Smith Wealth Management acquired a new position in Red Cat in the 3rd quarter valued at about $51,000. PVG Asset Management Corp acquired a new position in Red Cat in the 2nd quarter valued at about $63,000. XTX Topco Ltd boosted its holdings in Red Cat by 390.9% in the 2nd quarter. XTX Topco Ltd now owns 58,895 shares of the company’s stock valued at $68,000 after purchasing an additional 46,897 shares during the last quarter. Finally, United Capital Management of KS Inc. acquired a new position in Red Cat in the 3rd quarter valued at about $108,000. 37.97% of the stock is currently owned by institutional investors and hedge funds.

Red Cat Company Profile

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.