Red Cat (NASDAQ:RCAT) Stock Price Up 5.5% – Still a Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price traded up 5.5% during mid-day trading on Monday . The company traded as high as $14.68 and last traded at $13.93. 6,306,155 shares traded hands during mid-day trading, a decline of 26% from the average session volume of 8,539,343 shares. The stock had previously closed at $13.20.

Red Cat Stock Performance

The firm’s 50 day moving average is $8.40 and its 200 day moving average is $4.55. The stock has a market cap of $948.30 million, a P/E ratio of -25.72 and a beta of 1.32.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings results on Monday, December 16th. The company reported ($0.18) earnings per share (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 in the previous year, the business earned ($0.11) earnings per share. As a group, analysts expect that Red Cat Holdings, Inc. will post -0.39 EPS for the current fiscal year.

Insider Activity at Red Cat

In other news, 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 transaction of $2,726,813.12. Following the completion of the sale, 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 transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider George Michael Matus sold 112,686 shares of the company’s stock in a transaction on Wednesday, December 18th. The shares were sold at an average price of $9.20, for a total value of $1,036,711.20. Following the completion of the transaction, the insider now directly owns 973,103 shares in the company, valued at approximately $8,952,547.60. The trade was a 10.38 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,930,441 shares of company stock valued at $21,099,751 in the last ninety days. Corporate insiders own 21.50% of the company’s stock.

Institutional Investors Weigh In On Red Cat

A number of institutional investors and hedge funds have recently modified their holdings of RCAT. Centiva Capital LP purchased a new stake in Red Cat in the third quarter valued at $207,000. Wolverine Trading LLC purchased a new stake in shares of Red Cat in the third quarter worth about $233,000. Corsair Capital Management L.P. acquired a new stake in Red Cat during the third quarter worth about $308,000. Pekin Hardy Strauss Inc. purchased a new position in Red Cat during the third quarter valued at approximately $138,000. Finally, State Street Corp lifted its holdings in Red Cat by 44.9% in the third quarter. State Street Corp now owns 221,958 shares of the company’s stock valued at $564,000 after acquiring an additional 68,800 shares during the period. 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.