Red Cat (NASDAQ:RCAT) Sees Unusually-High Trading Volume – Still a Buy?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) saw unusually-high trading volume on Monday . Approximately 3,750,850 shares changed hands during mid-day trading, an increase of 66% from the previous session’s volume of 2,260,316 shares.The stock last traded at $12.08 and had previously closed at $12.26.

Red Cat Stock Up 9.4 %

The firm’s 50-day simple moving average is $6.79 and its 200-day simple moving average is $3.90. The firm has a market capitalization of $1.07 billion, a PE ratio of -29.15 and a beta of 1.33.

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 return on equity of 66.19% and a negative net margin of 162.50%. During the same quarter in the previous year, the company earned ($0.11) earnings per share. On average, equities research analysts forecast that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current year.

Insider Buying and Selling

In other news, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of the firm’s stock in a transaction that occurred on Friday, December 20th. The stock was sold at an average price of $10.44, for a total value of $1,188,312.12. Following the completion of the transaction, the executive now owns 558,325 shares in the company, valued at $5,828,913. This trade represents a 16.93 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider George Michael Matus sold 309,491 shares of the company’s stock in a transaction dated Thursday, December 26th. The stock was sold at an average price of $14.27, for a total transaction of $4,416,436.57. Following the completion of the sale, the insider now directly owns 304,406 shares in the company, valued at $4,343,873.62. This represents a 50.41 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,915,441 shares of company stock valued at $20,886,151 over the last quarter. 21.50% of the stock is owned by company insiders.

Institutional Trading of Red Cat

Several hedge funds and other institutional investors have recently made changes to their positions in RCAT. Sanctuary Advisors LLC bought a new stake in Red Cat in the third quarter worth $25,000. Wolverine Trading LLC purchased a new stake in shares of Red Cat during the third quarter valued at approximately $233,000. State Street Corp increased its position in shares of Red Cat by 44.9% during the third quarter. State Street Corp now owns 221,958 shares of the company’s stock valued at $564,000 after acquiring an additional 68,800 shares in the last quarter. Centiva Capital LP purchased a new position in Red Cat in the 3rd quarter worth approximately $207,000. Finally, Corsair Capital Management L.P. bought a new position in Red Cat in the 3rd quarter valued at approximately $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.