Red Cat (NASDAQ:RCAT) Trading Up 0% – Should You Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT) rose 0% on Wednesday . The stock traded as high as $9.87 and last traded at $9.26. Approximately 4,996,983 shares changed hands during mid-day trading, a decline of 52% from the average daily volume of 10,422,772 shares. The stock had previously closed at $9.26.

Red Cat Stock Performance

The business has a 50 day moving average of $10.02 and a 200-day moving average of $5.42. The company has a market capitalization of $704.62 million, a P/E ratio of -16.28 and a beta of 1.32. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.60 and a current ratio of 1.43.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings results 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 net margin of 232.62% and a negative return on equity of 96.00%. During the same period in the prior year, the firm earned ($0.11) EPS. On average, sell-side analysts predict that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Insiders Place Their Bets

In other Red Cat news, Director Joseph David Freedman sold 15,000 shares of the firm’s stock in a transaction dated Monday, December 30th. The stock was sold at an average price of $14.24, for a total value of $213,600.00. Following the sale, the director now owns 585,190 shares of the company’s stock, valued at $8,333,105.60. This trade represents a 2.50 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider George Michael Matus sold 112,686 shares of the business’s stock in a transaction dated Wednesday, December 18th. The stock was sold at an average price of $9.20, for a total value of $1,036,711.20. Following the transaction, the insider now directly owns 973,103 shares of the company’s stock, valued at $8,952,547.60. The trade was a 10.38 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 1,930,441 shares of company stock worth $21,099,751 in the last three months. 21.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Red Cat

Several institutional investors and hedge funds have recently made changes to their positions in RCAT. Sanctuary Advisors LLC bought a new position in Red Cat in the third quarter valued at $25,000. Sheets Smith Wealth Management purchased a new position in shares of Red Cat in the 3rd quarter worth about $51,000. XTX Topco Ltd increased its position in shares of Red Cat by 390.9% during the 2nd quarter. XTX Topco Ltd now owns 58,895 shares of the company’s stock valued at $68,000 after purchasing an additional 46,897 shares during the last quarter. United Capital Management of KS Inc. purchased a new position in shares of Red Cat during the 3rd quarter valued at about $108,000. Finally, Regency Capital Management Inc. DE bought a new stake in Red Cat in the 4th quarter worth approximately $130,000. Hedge funds and other institutional investors own 37.97% of the company’s stock.

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.