Red Cat Target of Unusually Large Options Trading (NASDAQ:RCAT)

Red Cat Holdings, Inc. (NASDAQ:RCAT) was the recipient of some unusual options trading activity on Tuesday. Stock traders purchased 33,080 call options on the company. This represents an increase of approximately 215% compared to the typical daily volume of 10,502 call options.

Red Cat Stock Down 8.8 %

NASDAQ:RCAT opened at $12.85 on Thursday. The stock has a market cap of $1.03 billion, a price-to-earnings ratio of -27.93 and a beta of 1.33. The company’s 50 day moving average price is $7.21 and its 200-day moving average price is $4.08. Red Cat has a 52 week low of $0.56 and a 52 week high of $14.91.

Red Cat (NASDAQ:RCAT) last issued its quarterly 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 period in the previous year, the firm posted ($0.11) earnings per share. As a group, sell-side analysts anticipate that Red Cat will post -0.39 earnings per share for the current year.

Insider Buying and Selling at Red Cat

In other Red Cat news, insider George Michael Matus sold 309,491 shares of the firm’s stock in a transaction on 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 completion of the transaction, the insider now owns 304,406 shares of the company’s stock, valued at approximately $4,343,873.62. This trade represents a 50.41 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Joseph David Freedman sold 15,000 shares of the company’s stock in a transaction dated Monday, December 30th. The stock was 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 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 disclosure for this sale can be found here. Insiders sold 1,930,441 shares of company stock valued at $21,099,751 in the last 90 days. Insiders own 21.50% of the company’s stock.

Hedge Funds Weigh In On Red Cat

Several large investors have recently made changes to their positions in the business. Sanctuary Advisors LLC bought a new stake in shares of Red Cat during the third quarter valued at approximately $25,000. Sheets Smith Wealth Management purchased a new position in Red Cat during the third quarter valued at $51,000. United Capital Management of KS Inc. bought a new stake in Red Cat in the 3rd quarter valued at $108,000. Pekin Hardy Strauss Inc. purchased a new stake in Red Cat in the 3rd quarter worth $138,000. Finally, PVG Asset Management Corp bought a new position in shares of Red Cat during the 2nd quarter valued at about $63,000. 37.97% of the stock is currently owned by hedge funds and other institutional investors.

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.