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

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) gapped up prior to trading on Friday . The stock had previously closed at $11.93, but opened at $12.32. Red Cat shares last traded at $13.01, with a volume of 2,269,276 shares.

Red Cat Stock Up 10.6 %

The company has a market cap of $1.06 billion, a PE ratio of -28.70 and a beta of 1.33. The company’s fifty day moving average is $7.80 and its 200-day moving average is $4.30.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings data 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 period in the prior year, the business posted ($0.11) earnings per share. Equities research analysts expect that Red Cat Holdings, Inc. will post -0.39 EPS for the current fiscal year.

Insider Transactions at Red Cat

In related news, CEO Jeffrey M. Thompson sold 392,551 shares of the firm’s stock in a transaction on Monday, December 23rd. The stock was 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 directly owns 13,121,898 shares of the company’s stock, valued at approximately $148,802,323.32. This trade represents a 2.90 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Joseph David Freedman sold 15,000 shares of Red Cat stock in a transaction on Monday, December 30th. The shares were sold at an average price of $14.24, for a total value of $213,600.00. Following the transaction, the director now owns 585,190 shares in the company, valued at $8,333,105.60. This trade represents a 2.50 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,930,441 shares of company stock worth $21,099,751 in the last quarter. Company insiders own 21.50% of the company’s stock.

Institutional Investors Weigh In On Red Cat

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Sanctuary Advisors LLC bought a new position in shares of Red Cat in the third quarter worth approximately $25,000. Sheets Smith Wealth Management purchased a new position in shares of Red Cat during the 3rd quarter valued at $51,000. PVG Asset Management Corp bought a new position in Red Cat in the 2nd quarter worth $63,000. XTX Topco Ltd increased its stake in Red Cat by 390.9% in the 2nd quarter. XTX Topco Ltd now owns 58,895 shares of the company’s stock worth $68,000 after buying an additional 46,897 shares in the last quarter. Finally, United Capital Management of KS Inc. bought a new stake in Red Cat during the third quarter valued at about $108,000. Institutional investors 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.