Red Cat (NASDAQ:RCAT) Shares Gap Up - Time to Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s stock price 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 traded.

Red Cat Stock Performance

The firm has a market cap of $751.11 million, a price-to-earnings ratio of -20.37 and a beta of 1.32. The business has a fifty day moving average of $8.83 and a two-hundred day moving average of $4.78.

Red Cat (NASDAQ:RCAT - Get Free Report) last posted its 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 162.50% and a negative return on equity of 66.19%. During the same period last year, the business posted ($0.11) earnings per share. On average, equities research analysts forecast that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Joseph David Freedman sold 15,000 shares of Red Cat stock in a transaction on Monday, December 30th. The stock was sold at an average price of $14.24, for a total value of $213,600.00. Following the completion of the sale, the director now owns 585,190 shares of the company's stock, valued at $8,333,105.60. The trade was a 2.50 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the company's stock in a transaction dated 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 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. Over the last quarter, insiders sold 1,930,441 shares of company stock worth $21,099,751. Insiders own 21.50% of the company's stock.

Hedge Funds Weigh In On Red Cat

A number of large investors have recently modified their holdings of RCAT. Renaissance Technologies LLC purchased a new position in Red Cat in the second quarter valued at about $267,000. Corsair Capital Management L.P. acquired a new position in Red Cat during the 3rd quarter worth approximately $308,000. Wolverine Trading LLC purchased a new position in Red Cat in the 3rd quarter worth approximately $233,000. Centiva Capital LP purchased a new position in Red Cat in the 3rd quarter worth approximately $207,000. Finally, State Street Corp raised its stake 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 valued at $564,000 after purchasing an additional 68,800 shares during the period. 37.97% of the stock is currently owned by hedge funds and other institutional investors.

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.