Red Cat (NASDAQ:RCAT) Shares Up 4.6% – Still a Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shot up 4.6% during trading on Tuesday . The company traded as high as $14.96 and last traded at $14.84. 5,805,888 shares traded hands during mid-day trading, a decline of 44% from the average session volume of 10,300,574 shares. The stock had previously closed at $14.19.

Red Cat Stock Down 9.4 %

The stock has a 50 day moving average of $8.40 and a 200 day moving average of $4.55. The firm has a market cap of $948.30 million, a price-to-earnings ratio of -25.72 and a beta of 1.32.

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

Insider Activity at Red Cat

In related news, CEO Jeffrey M. Thompson sold 392,551 shares of the firm’s stock in a transaction that occurred on Monday, December 23rd. The stock was sold at an average price of $11.34, for a total transaction of $4,451,528.34. Following the completion of the sale, the chief executive officer now owns 13,121,898 shares of the company’s stock, valued at $148,802,323.32. This trade represents a 2.90 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Joseph David Freedman sold 15,000 shares of the business’s stock in a transaction dated Monday, December 30th. The shares were 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 directly owns 585,190 shares of the company’s stock, valued at $8,333,105.60. The trade was a 2.50 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 1,930,441 shares of company stock worth $21,099,751 in the last quarter. 21.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Sanctuary Advisors LLC purchased a new position in Red Cat during the 3rd quarter valued at about $25,000. Wolverine Trading LLC bought a new position in Red Cat in the 3rd quarter valued at $233,000. State Street Corp grew its position in shares of Red Cat by 44.9% during the 3rd 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 bought a new position in shares of Red Cat in the third quarter worth $207,000. Finally, Corsair Capital Management L.P. purchased a new stake in shares of Red Cat in the third quarter worth $308,000. Hedge funds and other institutional investors own 37.97% of the company’s stock.

Red Cat Company Profile

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.