Investors Buy Large Volume of Red Cat Call Options (NASDAQ:RCAT)

Red Cat Holdings, Inc. (NASDAQ:RCAT) was the target of some unusual options trading on Friday. Stock traders bought 3,018 call options on the company. This represents an increase of approximately 68% compared to the average daily volume of 1,794 call options.

Institutional Trading of Red Cat

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Sheets Smith Wealth Management bought a new stake in Red Cat in the 3rd quarter valued at $51,000. PVG Asset Management Corp acquired a new position in shares of Red Cat in the second quarter valued at $63,000. XTX Topco Ltd raised its position in shares of Red Cat by 390.9% in the second 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 period. United Capital Management of KS Inc. acquired a new stake in shares of Red Cat during the 3rd quarter worth about $108,000. Finally, Pekin Hardy Strauss Inc. bought a new stake in shares of Red Cat during the 3rd quarter worth about $138,000. 37.97% of the stock is owned by institutional investors.

Red Cat Stock Up 16.9 %

Shares of RCAT stock opened at $4.70 on Friday. The stock has a 50-day moving average of $3.15 and a 200-day moving average of $2.21. Red Cat has a one year low of $0.52 and a one year high of $5.01.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings results on Monday, September 23rd. The company reported ($0.17) earnings per share (EPS) for the quarter. The firm had revenue of $2.78 million during the quarter. Red Cat had a negative net margin of 162.50% and a negative return on equity of 66.19%. As a group, research analysts expect that Red Cat will post -0.33 EPS for the current year.

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.