Red Cat (NASDAQ:RCAT) Trading Up 6.5% – Here’s What Happened

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price shot up 6.5% during trading on Tuesday . The company traded as high as $10.20 and last traded at $9.94. 3,007,844 shares changed hands during mid-day trading, a decline of 70% from the average session volume of 9,900,755 shares. The stock had previously closed at $9.33.

Red Cat Trading Down 7.4 %

The company has a 50 day moving average price of $9.10 and a two-hundred day moving average price of $4.88. The firm has a market capitalization of $809.62 million, a price-to-earnings ratio of -18.70 and a beta of 1.32. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.60 and a current ratio of 1.43.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings data on Monday, December 16th. The company reported ($0.18) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.09 by ($0.27). Red Cat had a negative net margin of 232.62% and a negative return on equity of 96.00%. During the same quarter in the previous year, the company earned ($0.11) EPS. On average, research analysts forecast that Red Cat Holdings, Inc. will post -0.5 EPS for the current year.

Insiders Place Their Bets

In other news, CEO Jeffrey M. Thompson sold 392,551 shares of the company’s stock in a transaction on Monday, December 23rd. The shares were sold at an average price of $11.34, for a total transaction of $4,451,528.34. Following the completion of the sale, the chief executive officer now owns 13,121,898 shares of the company’s stock, valued at $148,802,323.32. This represents a 2.90 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the firm’s stock in a transaction dated Wednesday, December 18th. The stock was sold at an average price of $8.29, for a total transaction of $2,726,813.12. Following the completion of the transaction, the director now directly owns 681,072 shares in the company, valued at approximately $5,646,086.88. This represents a 32.57 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 1,930,441 shares of company stock worth $21,099,751. Corporate insiders own 21.50% of the company’s stock.

Institutional Investors Weigh In On Red Cat

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Renaissance Technologies LLC acquired a new stake in shares of Red Cat in the 2nd quarter worth $267,000. State Street Corp raised its stake in Red Cat by 44.9% during the third 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. Corsair Capital Management L.P. acquired a new position in Red Cat in the 3rd quarter valued at about $308,000. Wolverine Trading LLC purchased a new stake in shares of Red Cat in the 3rd quarter valued at approximately $233,000. Finally, Centiva Capital LP acquired a new stake in shares of Red Cat during the 3rd quarter worth approximately $207,000. Institutional investors and hedge funds 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.