Red Cat (NASDAQ:RCAT) Trading Up 1.4% – Still a Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares traded up 1.4% during mid-day trading on Wednesday . The company traded as high as $9.44 and last traded at $8.58. 5,169,732 shares changed hands during trading, a decline of 51% from the average session volume of 10,489,961 shares. The stock had previously closed at $8.46.

Red Cat Price Performance

The company has a 50-day moving average of $9.70 and a 200-day moving average of $5.17. The stock has a market cap of $691.78 million, a price-to-earnings ratio of -15.98 and a beta of 1.32. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.60 and a current ratio of 1.43.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings data 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 96.00% and a negative net margin of 232.62%. During the same period in the previous year, the firm posted ($0.11) earnings per share. As a group, equities research analysts predict that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Insider Buying and Selling at Red Cat

In related news, insider George Michael Matus sold 309,491 shares of the company’s stock in a transaction that occurred on Thursday, December 26th. The shares were 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 represents a 50.41 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Joseph David Freedman sold 15,000 shares of the business’s stock in a transaction on Monday, December 30th. The shares were sold at an average price of $14.24, for a total transaction of $213,600.00. Following the sale, the director now directly owns 585,190 shares of the company’s stock, 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. In the last ninety days, insiders have sold 1,930,441 shares of company stock worth $21,099,751. Corporate insiders own 21.50% of the company’s stock.

Institutional Investors Weigh In On Red Cat

Institutional investors have recently modified their holdings of the stock. Sanctuary Advisors LLC acquired a new position in Red Cat in the third quarter worth $25,000. Regency Capital Management Inc. DE acquired a new position in shares of Red Cat in the 4th quarter valued at about $130,000. U.S. Capital Wealth Advisors LLC bought a new stake in shares of Red Cat during the 4th quarter valued at about $139,000. Myecfo LLC bought a new position in Red Cat in the fourth quarter worth about $193,000. Finally, Sheets Smith Wealth Management acquired a new position in Red Cat in the third quarter valued at approximately $51,000. 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.