Red Cat (NASDAQ:RCAT) Shares Gap Up - Here's Why

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) gapped up prior to trading 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.

Red Cat Stock Down 7.4 %

The business's 50 day simple moving average is $9.10 and its 200-day simple moving average is $4.88. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.60 and a current ratio of 1.43. The company has a market cap of $809.62 million, a price-to-earnings ratio of -18.70 and a beta of 1.32.

Red Cat (NASDAQ:RCAT - Get Free Report) last released its quarterly earnings data on Monday, December 16th. The company reported ($0.18) earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 last year, the firm posted ($0.11) EPS. Sell-side analysts expect that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Insider Activity at Red Cat

In related news, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of Red Cat stock in a transaction on Friday, December 20th. The shares were sold at an average price of $10.44, for a total value of $1,188,312.12. Following the completion of the sale, the executive now owns 558,325 shares of the company's stock, valued at approximately $5,828,913. The trade was a 16.93 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the stock in a transaction 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 transaction, the director now directly owns 681,072 shares in the company, valued at $5,646,086.88. The trade was a 32.57 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 1,930,441 shares of company stock valued at $21,099,751. 21.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Red Cat

Several institutional investors and hedge funds have recently added to or reduced their stakes in RCAT. Renaissance Technologies LLC bought a new position in shares of Red Cat in the second quarter valued at approximately $267,000. State Street Corp grew its stake in Red Cat by 44.9% in the 3rd 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 during the last quarter. Corsair Capital Management L.P. bought a new position in Red Cat in the 3rd quarter worth $308,000. Wolverine Trading LLC acquired a new position in Red Cat during the 3rd quarter worth $233,000. Finally, Centiva Capital LP bought a new stake in Red Cat during the third quarter valued at about $207,000. 37.97% of the stock is currently owned by institutional investors and hedge funds.

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.