Red Cat (NASDAQ:RCAT) Shares Gap Up – Still a Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares gapped up prior to trading on Friday . The stock had previously closed at $11.93, but opened at $12.32. Red Cat shares last traded at $13.01, with a volume of 2,269,276 shares trading hands.

Red Cat Trading Up 11.0 %

The company has a market capitalization of $1.06 billion, a price-to-earnings ratio of -28.78 and a beta of 1.33. The company has a 50 day moving average price of $7.59 and a 200 day moving average price of $4.20.

Red Cat (NASDAQ:RCAT) last announced 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 net margin of 162.50% and a negative return on equity of 66.19%. During the same quarter last year, the business earned ($0.11) earnings per share. Equities analysts predict that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current year.

Insiders Place Their Bets

In other Red Cat news, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of Red Cat 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 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 legal filing with the SEC, which is accessible through this link. Also, Director Joseph David Freedman sold 15,000 shares of the stock in a transaction dated 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 $8,333,105.60. This trade represents a 2.50 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 1,930,441 shares of company stock worth $21,099,751. Insiders own 21.50% of the company’s stock.

Institutional Investors Weigh In On Red Cat

Large investors have recently made changes to their positions in the stock. Sanctuary Advisors LLC bought a new stake in Red Cat in the 3rd quarter valued at approximately $25,000. Wolverine Trading LLC acquired a new position in Red Cat during the third quarter worth $233,000. State Street Corp grew its position 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 purchasing an additional 68,800 shares in the last quarter. Centiva Capital LP acquired a new stake in Red Cat in the 3rd quarter valued at $207,000. Finally, Corsair Capital Management L.P. bought a new stake in Red Cat during the 3rd quarter worth about $308,000. Institutional investors 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.