Red Cat (NASDAQ:RCAT) Shares Gap Up - Still a Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) gapped up prior to trading on Friday . The stock had previously closed at $11.93, but opened at $12.32. Red Cat shares last traded at $13.01, with a volume of 2,269,276 shares changing hands.

Red Cat Price Performance

The company has a market cap of $1.06 billion, a P/E ratio of -28.70 and a beta of 1.33. The company has a fifty day simple moving average of $7.59 and a 200-day simple moving average of $4.20.

Red Cat (NASDAQ:RCAT - Get Free Report) last announced its earnings results on Monday, December 16th. The company reported ($0.18) EPS 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 in the previous year, the company earned ($0.11) EPS. On average, analysts anticipate that Red Cat Holdings, Inc. will post -0.39 EPS for the current year.

Insiders Place Their Bets

In other news, Director Joseph David Freedman sold 50,000 shares of the stock in a transaction that occurred on Friday, December 20th. The shares were sold at an average price of $10.00, for a total value of $500,000.00. Following the completion of the sale, the director now directly owns 635,190 shares of the company's stock, valued at $6,351,900. This represents a 7.30 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the firm'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 sale, the director now owns 681,072 shares of the company's stock, valued at approximately $5,646,086.88. This represents a 32.57 % decrease in their ownership of the stock. 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 currently owned by company insiders.

Institutional Investors Weigh In On Red Cat

Institutional investors have recently modified their holdings of the stock. Sanctuary Advisors LLC acquired a new position in shares of Red Cat in the third quarter worth $25,000. Sheets Smith Wealth Management bought a new stake in shares of Red Cat in the 3rd quarter valued at approximately $51,000. PVG Asset Management Corp bought a new stake in shares of Red Cat in the 2nd quarter valued at approximately $63,000. XTX Topco Ltd grew its stake in shares of Red Cat by 390.9% in the 2nd quarter. XTX Topco Ltd now owns 58,895 shares of the company's stock valued at $68,000 after buying an additional 46,897 shares in the last quarter. Finally, United Capital Management of KS Inc. acquired a new position in Red Cat in the third quarter worth approximately $108,000. Institutional investors and hedge funds 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.