Red Cat (NASDAQ:RCAT) Trading Up 10.7% - Should You Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) shares were up 10.7% during mid-day trading on Tuesday . The company traded as high as $9.58 and last traded at $9.77. Approximately 3,069,887 shares traded hands during trading, a decline of 69% from the average daily volume of 9,906,896 shares. The stock had previously closed at $8.82.

Red Cat Price Performance

The stock has a market cap of $862.52 million, a PE ratio of -19.93 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. The company's fifty day moving average is $10.05 and its 200 day moving average is $5.76.

Red Cat (NASDAQ:RCAT - Get Free Report) last announced its quarterly earnings results on Monday, December 16th. The company reported ($0.18) earnings per share 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 quarter in the previous year, the firm earned ($0.11) EPS. As a group, sell-side analysts anticipate that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Insider Activity at Red Cat

In other Red Cat news, Director Joseph David Freedman sold 50,000 shares of the business's stock in a transaction on Friday, December 20th. The shares were sold at an average price of $10.00, for a total transaction of $500,000.00. Following the completion of the sale, the director now owns 635,190 shares in the company, valued at $6,351,900. The trade was a 7.30 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of Red Cat stock in a transaction dated Wednesday, December 18th. The shares were sold at an average price of $8.29, for a total transaction of $2,726,813.12. Following the completion of the transaction, the director now directly owns 681,072 shares of the company's stock, valued at $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. In the last ninety days, insiders have sold 1,930,441 shares of company stock worth $21,099,751. 21.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Red Cat

A number of hedge funds and other institutional investors have recently bought and sold shares of RCAT. SBI Securities Co. Ltd. bought a new stake in shares of Red Cat in the 4th quarter worth approximately $60,000. Jones Financial Companies Lllp increased its position in Red Cat by 1,536.6% in the 4th quarter. Jones Financial Companies Lllp now owns 8,887 shares of the company's stock valued at $114,000 after acquiring an additional 8,344 shares during the period. Daiwa Securities Group Inc. acquired a new stake in Red Cat in the 4th quarter valued at approximately $118,000. Sanctuary Advisors LLC acquired a new position in Red Cat during the 3rd quarter worth $25,000. Finally, Regency Capital Management Inc. DE acquired a new stake in Red Cat in the fourth quarter worth about $130,000. 37.97% of the stock is currently 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.