Red Cat (NASDAQ:RCAT) Shares Up 9.7% - Still a Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) was up 9.7% during mid-day trading on Friday . The stock traded as high as $9.69 and last traded at $9.56. Approximately 3,304,310 shares traded hands during mid-day trading, a decline of 67% from the average daily volume of 10,061,477 shares. The stock had previously closed at $8.71.

Red Cat Trading Up 0.3 %

The company's 50 day simple moving average is $10.02 and its 200-day simple moving average is $5.52. The firm has a market cap of $707.01 million, a P/E ratio of -16.33 and a beta of 1.24. The company has a quick ratio of 0.60, a current ratio of 1.43 and a debt-to-equity ratio of 0.30.

Red Cat (NASDAQ:RCAT - Get Free Report) last issued its quarterly earnings results 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 return on equity of 96.00% and a negative net margin of 232.62%. During the same period in the prior year, the business earned ($0.11) EPS. As a group, research analysts predict that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Joseph David Freedman sold 15,000 shares of the stock in a transaction that occurred 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 transaction, the director now owns 585,190 shares of the company's stock, valued at $8,333,105.60. This represents 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 through the SEC website. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of Red Cat stock in a transaction on Wednesday, December 18th. The shares were sold at an average price of $8.29, for a total value of $2,726,813.12. Following the sale, the director now directly owns 681,072 shares of the company's stock, valued at approximately $5,646,086.88. This trade represents a 32.57 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,930,441 shares of company stock valued at $21,099,751 in the last 90 days. Company insiders own 21.50% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Atria Wealth Solutions Inc. purchased a new stake in shares of Red Cat in the 4th quarter worth approximately $134,000. AlphaCentric Advisors LLC purchased a new stake in Red Cat during the fourth quarter worth $353,000. Gladstone Institutional Advisory LLC lifted its holdings in Red Cat by 34.0% during the fourth quarter. Gladstone Institutional Advisory LLC now owns 13,400 shares of the company's stock worth $172,000 after buying an additional 3,400 shares during the period. Silver Oak Securities Incorporated boosted its position in Red Cat by 502.3% during the 4th quarter. Silver Oak Securities Incorporated now owns 60,755 shares of the company's stock valued at $856,000 after acquiring an additional 50,668 shares in the last quarter. Finally, U.S. Capital Wealth Advisors LLC purchased a new position in shares of Red Cat in the 4th quarter valued at $139,000. Hedge funds and other institutional investors 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.