Red Cat (NASDAQ:RCAT) Stock Price Up 14.2% – Should You Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT) traded up 14.2% on Friday . The stock traded as high as $9.83 and last traded at $9.49. 7,276,086 shares changed hands during trading, a decline of 32% from the average session volume of 10,712,833 shares. The stock had previously closed at $8.31.

Red Cat Stock Up 7.1 %

The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.60 and a current ratio of 1.43. The firm has a market cap of $713.26 million, a price-to-earnings ratio of -16.52 and a beta of 1.32. The firm has a 50-day moving average price of $9.70 and a two-hundred day moving average price of $5.17.

Red Cat (NASDAQ:RCAT) last released its quarterly 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 return on equity of 96.00% and a negative net margin of 232.62%. During the same period last year, the business posted ($0.11) EPS. On average, sell-side analysts forecast that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Jeffrey M. Thompson sold 392,551 shares of the business’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 sale, the chief executive officer now owns 13,121,898 shares of the company’s stock, valued at $148,802,323.32. The trade was a 2.90 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the business’s stock in a transaction that occurred on Wednesday, December 18th. The stock was sold at an average price of $8.29, for a total value of $2,726,813.12. Following the sale, the director now directly owns 681,072 shares in the company, valued at $5,646,086.88. This trade represents a 32.57 % 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. 21.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On Red Cat

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Renaissance Technologies LLC purchased a new stake in Red Cat in the 2nd quarter valued at approximately $267,000. State Street Corp lifted its stake in Red Cat by 44.9% in the 3rd quarter. State Street Corp now owns 221,958 shares of the company’s stock valued at $564,000 after buying an additional 68,800 shares in the last quarter. Corsair Capital Management L.P. purchased a new stake in Red Cat in the 3rd quarter valued at approximately $308,000. Wolverine Trading LLC purchased a new stake in Red Cat in the 3rd quarter valued at approximately $233,000. Finally, Centiva Capital LP purchased a new stake in Red Cat in the 3rd quarter valued at approximately $207,000. 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.