Red Cat (NASDAQ:RCAT) Trading 15.3% Higher – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price traded up 15.3% during trading on Friday . The stock traded as high as $13.88 and last traded at $13.76. 6,111,309 shares were traded during mid-day trading, a decline of 10% from the average session volume of 6,801,337 shares. The stock had previously closed at $11.93.

Red Cat Stock Performance

The company has a 50 day moving average price of $7.80 and a 200 day moving average price of $4.30. The firm has a market cap of $1.06 billion, a price-to-earnings ratio of -28.70 and a beta of 1.33.

Red Cat (NASDAQ:RCAT) last posted its earnings results on Monday, December 16th. The company reported ($0.18) EPS for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.27). Red Cat had a negative net margin of 162.50% and a negative return on equity of 66.19%. During the same quarter last year, the firm posted ($0.11) earnings per share. On average, research analysts forecast that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current year.

Insider Buying and Selling

In related news, insider George Michael Matus sold 112,686 shares of the stock in a transaction dated Wednesday, December 18th. The stock was sold at an average price of $9.20, for a total transaction of $1,036,711.20. Following the transaction, the insider now owns 973,103 shares of the company’s stock, valued at approximately $8,952,547.60. This represents a 10.38 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Jeffrey M. Thompson sold 392,551 shares of the firm’s 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 of the company’s stock, valued at $148,802,323.32. This trade represents a 2.90 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 1,930,441 shares of company stock valued at $21,099,751. Company insiders own 21.50% of the company’s stock.

Institutional Investors Weigh In On Red Cat

Several large investors have recently added to or reduced their stakes in the business. Centiva Capital LP purchased a new position in Red Cat in the 3rd quarter valued at approximately $207,000. Wolverine Trading LLC acquired a new stake in shares of Red Cat in the third quarter valued at $233,000. Corsair Capital Management L.P. purchased a new position in Red Cat in the third quarter valued at $308,000. Pekin Hardy Strauss Inc. acquired a new position in Red Cat during the 3rd quarter worth $138,000. Finally, State Street Corp increased its holdings in Red Cat by 44.9% during the 3rd quarter. State Street Corp now owns 221,958 shares of the company’s stock worth $564,000 after purchasing an additional 68,800 shares during the period. 37.97% of the stock is owned by hedge funds and other institutional investors.

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.