Red Cat (NASDAQ:RCAT) Shares Up 5.5% – Here’s Why

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) rose 5.5% on Monday . The stock traded as high as $14.68 and last traded at $13.93. Approximately 6,306,155 shares were traded during mid-day trading, a decline of 26% from the average daily volume of 8,539,343 shares. The stock had previously closed at $13.20.

Red Cat Trading Down 9.4 %

The firm has a market capitalization of $948.30 million, a P/E ratio of -25.72 and a beta of 1.32. The company has a 50 day simple moving average of $8.40 and a two-hundred day simple moving average of $4.55.

Red Cat (NASDAQ:RCAT) last issued its earnings results 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 66.19% and a negative net margin of 162.50%. During the same quarter in the prior year, the business posted ($0.11) EPS. On average, sell-side analysts expect that Red Cat Holdings, Inc. will post -0.39 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider George Michael Matus sold 309,491 shares of the business’s stock in a transaction that occurred on Thursday, December 26th. The stock was sold at an average price of $14.27, for a total transaction of $4,416,436.57. Following the transaction, the insider now owns 304,406 shares of the company’s stock, valued at approximately $4,343,873.62. The trade was a 50.41 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Joseph David Freedman sold 15,000 shares of the business’s stock in a transaction on Monday, December 30th. The shares were sold at an average price of $14.24, for a total transaction 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 position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 1,930,441 shares of company stock worth $21,099,751. Corporate insiders own 21.50% of the company’s stock.

Institutional Trading of Red Cat

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RCAT. Sanctuary Advisors LLC purchased a new position in Red Cat during the 3rd quarter worth $25,000. Sheets Smith Wealth Management purchased a new stake in Red Cat during the third quarter worth $51,000. United Capital Management of KS Inc. bought a new stake in Red Cat during the 3rd quarter valued at $108,000. XTX Topco Ltd increased its holdings in shares of Red Cat by 390.9% in the 2nd quarter. XTX Topco Ltd now owns 58,895 shares of the company’s stock valued at $68,000 after acquiring an additional 46,897 shares during the period. Finally, Pekin Hardy Strauss Inc. bought a new position in shares of Red Cat in the 3rd quarter worth $138,000. 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.