Red Cat (NASDAQ:RCAT) Trading 4.6% Higher - Here's Why

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s share price rose 4.6% during mid-day trading on Tuesday . The company traded as high as $14.96 and last traded at $14.84. Approximately 5,805,888 shares changed hands during mid-day trading, a decline of 44% from the average daily volume of 10,300,574 shares. The stock had previously closed at $14.19.

Red Cat Stock Performance

The company's 50-day moving average is $8.03 and its 200-day moving average is $4.42. The firm has a market cap of $1.05 billion, a price-to-earnings ratio of -28.39 and a beta of 1.32.

Red Cat (NASDAQ:RCAT - Get Free Report) last released its quarterly 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 quarter in the prior year, the firm earned ($0.11) EPS. On average, analysts predict that Red Cat Holdings, Inc. will post -0.39 EPS for the current year.

Insider Transactions at Red Cat

In other Red Cat news, CEO Jeffrey M. Thompson sold 392,551 shares of Red Cat stock in a transaction on Monday, December 23rd. The shares were sold at an average price of $11.34, for a total transaction of $4,451,528.34. Following the completion of the sale, the chief executive officer now owns 13,121,898 shares of the company's stock, valued at approximately $148,802,323.32. The trade was a 2.90 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Joseph David Freedman sold 15,000 shares of the company's stock in a transaction on Monday, December 30th. The shares were sold at an average price of $14.24, for a total transaction 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. The trade was a 2.50 % decrease in their position. 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 90 days. 21.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Red Cat

Institutional investors have recently made changes to their positions in the stock. Sanctuary Advisors LLC acquired a new position in shares of Red Cat in the third quarter valued at $25,000. Sheets Smith Wealth Management acquired a new position in shares of Red Cat in the third quarter valued at about $51,000. PVG Asset Management Corp acquired a new stake in Red Cat in the 2nd quarter worth about $63,000. XTX Topco Ltd grew 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 worth $68,000 after purchasing an additional 46,897 shares in the last quarter. Finally, United Capital Management of KS Inc. acquired a new stake in shares of Red Cat in the third quarter valued at approximately $108,000. 37.97% of the stock is owned by institutional investors and hedge funds.

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.