Red Cat (NASDAQ:RCAT) Stock Price Up 17.1% – Still a Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price rose 17.1% during trading on Wednesday . The stock traded as high as $11.14 and last traded at $10.97. Approximately 5,516,855 shares were traded during trading, a decline of 44% from the average daily volume of 9,852,533 shares. The stock had previously closed at $9.37.

Red Cat Stock Up 16.1 %

The company’s 50 day moving average price is $8.95 and its 200 day moving average price is $4.83. The firm has a market capitalization of $872.15 million, a price-to-earnings ratio of -23.65 and a beta of 1.32.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings data on Monday, December 16th. The company reported ($0.18) EPS 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 quarter last year, the company earned ($0.11) EPS. As a group, analysts expect that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current year.

Insider Transactions at Red Cat

In related news, CEO Jeffrey M. Thompson sold 392,551 shares of the business’s stock in a transaction on Monday, December 23rd. The shares were sold at an average price of $11.34, for a total transaction of $4,451,528.34. Following the completion of the transaction, the chief executive officer now directly owns 13,121,898 shares in the company, valued at $148,802,323.32. The trade was a 2.90 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the business’s stock in a transaction on Wednesday, December 18th. The shares were sold at an average price of $8.29, for a total transaction of $2,726,813.12. Following the transaction, the director now owns 681,072 shares of the company’s stock, valued at $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. Over the last ninety days, 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

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Renaissance Technologies LLC purchased a new position in Red Cat in the second quarter valued at $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. purchased a new position in Red Cat in the third quarter valued at $308,000. Wolverine Trading LLC purchased a new position in Red Cat in the third quarter valued at $233,000. Finally, Centiva Capital LP purchased a new position in Red Cat in the third quarter valued at $207,000. 37.97% of the stock is currently 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.