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

by · The Cerbat Gem

Red Cat Holdings, Inc. (NASDAQ:RCAT – Get Free Report) 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 – Get Free Report) 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

(Get Free Report)

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.

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