Red Cat (NASDAQ:RCAT) Shares Gap Up – Should You Buy?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) gapped up before the market opened on Tuesday . The stock had previously closed at $9.33, but opened at $9.89. Red Cat shares last traded at $10.00, with a volume of 1,320,100 shares changing hands.

Red Cat Trading Up 16.4 %

The company has a current ratio of 1.43, a quick ratio of 0.60 and a debt-to-equity ratio of 0.30. The company has a 50-day moving average price of $8.95 and a two-hundred day moving average price of $4.83.

Red Cat (NASDAQ:RCAT) last posted 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 96.00% and a negative net margin of 232.62%. During the same quarter in the prior year, the business posted ($0.11) EPS. As a group, sell-side analysts predict that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Red Cat news, insider George Michael Matus sold 309,491 shares of Red Cat stock in a transaction that occurred on Thursday, December 26th. The shares were sold at an average price of $14.27, for a total transaction of $4,416,436.57. Following the completion of the sale, the insider now directly owns 304,406 shares in the company, valued at $4,343,873.62. The trade was a 50.41 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the business’s stock in a transaction that occurred on Wednesday, December 18th. The stock was sold at an average price of $8.29, for a total transaction of $2,726,813.12. Following the completion of the transaction, the director now directly owns 681,072 shares of the company’s stock, valued at approximately $5,646,086.88. This represents a 32.57 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 1,930,441 shares of company stock worth $21,099,751 over the last ninety days. 21.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Red Cat

Several hedge funds have recently added to or reduced their stakes in RCAT. Renaissance Technologies LLC bought a new position in shares of Red Cat during the 2nd quarter valued at about $267,000. XTX Topco Ltd boosted its stake in Red Cat by 390.9% in the second quarter. XTX Topco Ltd now owns 58,895 shares of the company’s stock worth $68,000 after buying an additional 46,897 shares in the last quarter. PVG Asset Management Corp purchased a new stake in Red Cat in the second quarter worth approximately $63,000. Sheets Smith Wealth Management purchased a new position in shares of Red Cat during the third quarter worth approximately $51,000. Finally, United Capital Management of KS Inc. bought a new stake in shares of Red Cat in the 3rd quarter worth approximately $108,000. Institutional investors own 37.97% of the company’s stock.

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.