Red Cat Target of Unusually High Options Trading (NASDAQ:RCAT)

Red Cat Holdings, Inc. (NASDAQ:RCAT) was the recipient of unusually large options trading activity on Tuesday. Stock investors purchased 21,751 call options on the stock. This represents an increase of 58% compared to the typical volume of 13,792 call options.

Red Cat Stock Performance

RCAT stock traded down $1.83 during mid-day trading on Tuesday, hitting $7.37. 21,513,423 shares of the company were exchanged, compared to its average volume of 5,252,005. The business has a 50 day simple moving average of $6.39 and a 200-day simple moving average of $7.74. The company has a current ratio of 1.43, a quick ratio of 0.60 and a debt-to-equity ratio of 0.30. The stock has a market capitalization of $669.59 million, a PE ratio of -13.66 and a beta of 1.40. Red Cat has a 1-year low of $1.00 and a 1-year high of $15.27.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings results on Wednesday, May 14th. The company reported ($0.27) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.10) by ($0.17). Red Cat had a negative net margin of 232.62% and a negative return on equity of 96.00%. On average, equities analysts forecast that Red Cat will post -0.5 earnings per share for the current year.

Institutional Investors Weigh In On Red Cat

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Twin Tree Management LP bought a new position in Red Cat in the fourth quarter valued at approximately $28,000. Bank of America Corp DE lifted its holdings in Red Cat by 407.0% in the fourth quarter. Bank of America Corp DE now owns 3,397 shares of the company’s stock valued at $44,000 after buying an additional 2,727 shares during the period. Mark Sheptoff Financial Planning LLC acquired a new position in shares of Red Cat during the fourth quarter valued at about $48,000. SBI Securities Co. Ltd. raised its holdings in shares of Red Cat by 104.4% during the first quarter. SBI Securities Co. Ltd. now owns 9,467 shares of the company’s stock valued at $56,000 after purchasing an additional 4,835 shares during the period. Finally, Summit Trail Advisors LLC bought a new stake in shares of Red Cat during the first quarter worth about $59,000. 37.97% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on RCAT shares. Northland Capmk upgraded shares of Red Cat to a “strong-buy” rating in a research report on Monday, March 10th. Northland Securities started coverage on shares of Red Cat in a research report on Tuesday, March 11th. They set an “outperform” rating and a $13.00 price objective for the company.

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.