Red Cat (NASDAQ:RCAT) Trading 17.1% Higher – Still a Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT) traded up 17.1% during mid-day trading on Wednesday . The stock traded as high as $11.14 and last traded at $10.97. 5,516,855 shares changed hands during mid-day trading, a decline of 44% from the average session volume of 9,852,533 shares. The stock had previously closed at $9.37.

Red Cat Price Performance

The stock has a market cap of $686.17 million, a P/E ratio of -15.85 and a beta of 1.32. The company’s 50 day moving average price is $9.23 and its 200-day moving average price is $4.91. 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 announced its earnings results 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 return on equity of 96.00% and a negative net margin of 232.62%. During the same period in the prior year, the business earned ($0.11) EPS. As a group, sell-side analysts expect that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Insider Buying and Selling

In related news, insider George Michael Matus sold 112,686 shares of the business’s stock in a transaction on Wednesday, December 18th. The shares were sold at an average price of $9.20, for a total value of $1,036,711.20. Following the transaction, the insider now owns 973,103 shares in the company, valued at $8,952,547.60. The trade was a 10.38 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Joseph David Freedman sold 15,000 shares of the stock in a transaction dated 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 of the company’s stock, valued at approximately $8,333,105.60. The trade was a 2.50 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 1,930,441 shares of company stock valued at $21,099,751 over the last ninety days. 21.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Red Cat

Several institutional investors have recently added to or reduced their stakes in RCAT. Myecfo LLC bought a new stake in shares of Red Cat in the 4th quarter valued at $193,000. Kieckhefer Group LLC acquired a new stake in Red Cat in the fourth quarter worth $296,000. Sanctuary Advisors LLC bought a new stake in Red Cat in the third quarter valued at $25,000. Wolverine Trading LLC acquired a new position in shares of Red Cat during the third quarter valued at about $233,000. Finally, State Street Corp boosted its position in shares of 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 in the last quarter. 37.97% of the stock is owned by institutional investors and hedge funds.

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.