Red Cat (NASDAQ:RCAT) Reaches New 1-Year High – Still a Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price reached a new 52-week high during trading on Tuesday . The stock traded as high as $15.27 and last traded at $14.19, with a volume of 16418037 shares changing hands. The stock had previously closed at $13.20.

Red Cat Price Performance

The stock has a market cap of $948.30 million, a price-to-earnings ratio of -25.72 and a beta of 1.32. The firm has a fifty day moving average of $8.40 and a 200 day moving average of $4.55.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings data on Monday, December 16th. The company reported ($0.18) earnings per share for the quarter, missing the consensus estimate 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 period in the previous year, the business earned ($0.11) earnings per share. Research analysts anticipate that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of the stock in a transaction that occurred on Friday, December 20th. The stock was sold at an average price of $10.44, for a total value of $1,188,312.12. Following the completion of the transaction, the executive now directly owns 558,325 shares in the company, valued at approximately $5,828,913. This represents a 16.93 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Jeffrey M. Thompson sold 392,551 shares of the firm’s stock in a transaction on Monday, December 23rd. The stock was sold at an average price of $11.34, for a total value of $4,451,528.34. Following the transaction, the chief executive officer now owns 13,121,898 shares of the company’s stock, valued at approximately $148,802,323.32. This represents a 2.90 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 1,930,441 shares of company stock worth $21,099,751. Company insiders own 21.50% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Centiva Capital LP purchased a new position in shares of Red Cat during the third quarter worth $207,000. Wolverine Trading LLC purchased a new position in shares of Red Cat during the third quarter worth $233,000. Corsair Capital Management L.P. purchased a new position in shares of Red Cat during the third quarter worth $308,000. Pekin Hardy Strauss Inc. purchased a new position in shares of Red Cat during the third quarter worth $138,000. Finally, State Street Corp boosted its position in shares of 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 buying an additional 68,800 shares during the period. 37.97% of the stock is currently 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.