Red Cat (NASDAQ:RCAT) Stock Price Up 2.6% – Still a Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares rose 2.6% during mid-day trading on Tuesday . The company traded as high as $8.59 and last traded at $8.26. Approximately 2,215,419 shares were traded during trading, a decline of 79% from the average daily volume of 10,417,146 shares. The stock had previously closed at $8.05.

Red Cat Stock Performance

The firm has a 50 day moving average of $9.99 and a 200-day moving average of $5.40. The company has a market cap of $698.19 million, a P/E ratio of -16.13 and a beta of 1.32. The company has a quick ratio of 0.60, a current ratio of 1.43 and a debt-to-equity ratio of 0.30.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings data on Monday, December 16th. The company reported ($0.18) earnings per share for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.27). Red Cat had a negative return on equity of 96.00% and a negative net margin of 232.62%. During the same period last year, the firm posted ($0.11) earnings per share. As a group, sell-side analysts anticipate that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the business’s stock in a transaction on Wednesday, December 18th. The stock was sold at an average price of $8.29, for a total value of $2,726,813.12. Following the completion of the transaction, the director now directly owns 681,072 shares of the company’s stock, valued at $5,646,086.88. The trade was a 32.57 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Joseph David Freedman sold 15,000 shares of the firm’s stock in a transaction on Monday, December 30th. The stock was sold at an average price of $14.24, for a total value of $213,600.00. Following the sale, 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 position. The disclosure for this sale can be found here. Insiders sold a total of 1,930,441 shares of company stock worth $21,099,751 over the last 90 days. Corporate insiders own 21.50% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in RCAT. Sanctuary Advisors LLC acquired a new position in shares of Red Cat during the third quarter valued at $25,000. Sheets Smith Wealth Management acquired a new position in Red Cat during the 3rd quarter valued at about $51,000. XTX Topco Ltd raised its position in shares of Red Cat by 390.9% during 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. United Capital Management of KS Inc. acquired a new stake in shares of Red Cat in the 3rd quarter worth approximately $108,000. Finally, Regency Capital Management Inc. DE bought a new position in shares of Red Cat in the fourth quarter valued at approximately $130,000. 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.