Red Cat (NASDAQ:RCAT) Trading 15.3% Higher – Time to Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price traded up 15.3% on Friday . The stock traded as high as $13.88 and last traded at $13.76. 6,111,309 shares were traded during trading, a decline of 10% from the average session volume of 6,801,337 shares. The stock had previously closed at $11.93.

Red Cat Stock Performance

The firm has a 50 day moving average of $7.59 and a 200-day moving average of $4.20. The stock has a market capitalization of $1.03 billion, a PE ratio of -28.07 and a beta of 1.33.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings results on Monday, December 16th. The company reported ($0.18) EPS 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 firm earned ($0.11) EPS. On average, sell-side analysts predict that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current year.

Insider Transactions at Red Cat

In related news, Director Joseph David Freedman sold 15,000 shares of the business’s stock in a transaction that occurred on Monday, December 30th. The stock was sold at an average price of $14.24, for a total value of $213,600.00. Following the completion of the sale, the director now owns 585,190 shares of the company’s stock, valued at approximately $8,333,105.60. The trade was a 2.50 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Jeffrey M. Thompson sold 392,551 shares of the firm’s stock in a transaction that occurred on Monday, December 23rd. The shares were sold at an average price of $11.34, for a total transaction of $4,451,528.34. Following the transaction, the chief executive officer now directly owns 13,121,898 shares in the company, valued at approximately $148,802,323.32. The trade was a 2.90 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 1,930,441 shares of company stock valued at $21,099,751. 21.50% of the stock is owned by insiders.

Institutional Trading of Red Cat

Institutional investors and hedge funds have recently made changes to their positions in the stock. Sanctuary Advisors LLC acquired a new position in shares of Red Cat during the 3rd quarter valued at about $25,000. Sheets Smith Wealth Management acquired a new position in Red Cat during the third quarter valued at approximately $51,000. United Capital Management of KS Inc. bought a new position in shares of Red Cat in the third quarter valued at approximately $108,000. Pekin Hardy Strauss Inc. acquired a new stake in shares of Red Cat in the third quarter worth $138,000. Finally, PVG Asset Management Corp acquired a new position in Red Cat in the 2nd quarter valued at $63,000. 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.