Red Cat (NASDAQ:RCAT) Shares Up 4.6% – Here’s Why

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) rose 4.6% on Tuesday . The company traded as high as $14.96 and last traded at $14.84. Approximately 5,805,888 shares changed hands during trading, a decline of 44% from the average daily volume of 10,300,574 shares. The stock had previously closed at $14.19.

Red Cat Trading Down 7.3 %

The company’s 50-day moving average is $8.03 and its 200 day moving average is $4.42. The stock has a market capitalization of $1.05 billion, a PE ratio of -28.61 and a beta of 1.32.

Red Cat (NASDAQ:RCAT) last announced 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 net margin of 162.50% and a negative return on equity of 66.19%. During the same quarter in the previous year, the business earned ($0.11) EPS. Sell-side analysts forecast that Red Cat Holdings, Inc. will post -0.39 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of the firm’s stock in a transaction dated Friday, December 20th. The stock was sold at an average price of $10.44, for a total transaction of $1,188,312.12. Following the sale, the executive now directly owns 558,325 shares of the company’s stock, valued at $5,828,913. This trade represents a 16.93 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of Red Cat stock in a transaction that occurred on Wednesday, December 18th. The shares were sold at an average price of $8.29, for a total value of $2,726,813.12. Following the transaction, the director now owns 681,072 shares of the company’s stock, 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. Insiders sold a total of 1,930,441 shares of company stock valued at $21,099,751 over the last 90 days. Insiders own 21.50% of the company’s stock.

Hedge Funds Weigh In On Red Cat

Several institutional investors have recently made changes to their positions in RCAT. Renaissance Technologies LLC purchased a new stake in Red Cat during the second quarter worth $267,000. State Street Corp increased its holdings in Red Cat by 44.9% in the third quarter. State Street Corp now owns 221,958 shares of the company’s stock valued at $564,000 after buying an additional 68,800 shares in the last quarter. Corsair Capital Management L.P. acquired a new position in shares of Red Cat in the third quarter worth about $308,000. Wolverine Trading LLC purchased a new stake in shares of Red Cat during the 3rd quarter worth about $233,000. Finally, Centiva Capital LP acquired a new stake in shares of Red Cat during the 3rd quarter valued at about $207,000. 37.97% of the stock is owned by hedge funds and other institutional investors.

Red Cat Company Profile

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.