Red Cat (NASDAQ:RCAT) Trading 2.6% Higher - Should You Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) shares rose 2.6% during mid-day trading on Tuesday . The stock traded as high as $8.59 and last traded at $8.26. Approximately 2,215,419 shares traded hands during mid-day trading, a decline of 79% from the average daily volume of 10,417,146 shares. The stock had previously closed at $8.05.

Red Cat Stock Up 0.9 %

The stock has a market cap of $704.61 million, a price-to-earnings ratio of -16.28 and a beta of 1.32. The firm's 50-day moving average is $10.02 and its 200 day moving average is $5.52. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.43 and a quick ratio of 0.60.

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 the consensus estimate 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 quarter last year, the business posted ($0.11) earnings per share. Sell-side analysts anticipate that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Red Cat news, insider George Michael Matus sold 309,491 shares of the stock in a transaction on Thursday, December 26th. The stock was sold at an average price of $14.27, for a total transaction of $4,416,436.57. Following the completion of the transaction, the insider now directly owns 304,406 shares of the company's stock, valued at approximately $4,343,873.62. This trade represents a 50.41 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Joseph David Freedman sold 15,000 shares of the business's 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 directly owns 585,190 shares in the company, valued at $8,333,105.60. This represents a 2.50 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 1,930,441 shares of company stock worth $21,099,751. Corporate insiders own 21.50% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of RCAT. Renaissance Technologies LLC bought a new position in shares of Red Cat during the 2nd quarter valued at about $267,000. State Street Corp boosted its holdings in Red Cat by 44.9% during the third quarter. State Street Corp now owns 221,958 shares of the company's stock worth $564,000 after buying an additional 68,800 shares in the last quarter. Corsair Capital Management L.P. bought a new position in shares of Red Cat in the third quarter valued at $308,000. Wolverine Trading LLC acquired a new stake in shares of Red Cat during the 3rd quarter valued at $233,000. Finally, Centiva Capital LP bought a new stake in shares of Red Cat during the 3rd quarter worth $207,000. 37.97% of the stock is 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.