Red Cat (NASDAQ:RCAT) Shares Gap Up – Here’s What Happened

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares gapped up before the market opened on Wednesday . The stock had previously closed at $8.46, but opened at $8.92. Red Cat shares last traded at $8.72, with a volume of 3,049,830 shares traded.

Red Cat Price Performance

The firm’s 50-day simple moving average is $9.70 and its 200 day simple moving average is $5.17. The company has a current ratio of 1.43, a quick ratio of 0.60 and a debt-to-equity ratio of 0.30.

Red Cat (NASDAQ:RCAT) last posted its earnings results 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 last year, the business earned ($0.11) EPS. As a group, sell-side analysts forecast that Red Cat Holdings, Inc. will post -0.5 EPS for the current year.

Insiders Place Their Bets

In other Red Cat news, 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 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Jeffrey M. Thompson sold 392,551 shares of Red Cat 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 transaction, the chief executive officer now owns 13,121,898 shares in the company, valued at $148,802,323.32. This trade represents a 2.90 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 1,930,441 shares of company stock worth $21,099,751. Company insiders own 21.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds 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 $25,000. Sheets Smith Wealth Management bought a new stake in shares of Red Cat in the third quarter valued at about $51,000. PVG Asset Management Corp acquired a new position in shares of Red Cat during the second quarter worth about $63,000. XTX Topco Ltd raised its position in Red Cat by 390.9% in the 2nd quarter. XTX Topco Ltd now owns 58,895 shares of the company’s stock valued at $68,000 after buying an additional 46,897 shares during the last quarter. Finally, United Capital Management of KS Inc. acquired a new stake in Red Cat in the 3rd quarter valued at approximately $108,000. 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.