Red Cat (NASDAQ:RCAT) Trading 5.5% Higher - Here's Why

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s share price rose 5.5% during trading on Monday . The stock traded as high as $14.68 and last traded at $13.93. Approximately 6,306,155 shares were traded during mid-day trading, a decline of 26% from the average daily volume of 8,539,343 shares. The stock had previously closed at $13.20.

Red Cat Trading Up 7.5 %

The business has a fifty day moving average price of $8.03 and a two-hundred day moving average price of $4.42. The firm has a market capitalization of $1.14 billion, a PE ratio of -30.85 and a beta of 1.32.

Red Cat (NASDAQ:RCAT - Get Free Report) last announced its earnings results on Monday, December 16th. The company reported ($0.18) earnings per share for the quarter, missing the consensus estimate of $0.09 by ($0.27). Red Cat had a negative return on equity of 66.19% and a negative net margin of 162.50%. During the same quarter in the previous year, the business posted ($0.11) EPS. On average, equities analysts forecast that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current fiscal year.

Insider Activity at Red Cat

In other news, CEO Jeffrey M. Thompson sold 392,551 shares of the stock in a transaction dated 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 sale, the chief executive officer now owns 13,121,898 shares of the company's stock, valued at approximately $148,802,323.32. This represents a 2.90 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Joseph David Freedman sold 15,000 shares of the firm's stock in a transaction that occurred 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 completion of the transaction, the director now directly owns 585,190 shares of the company's stock, valued at approximately $8,333,105.60. The trade was a 2.50 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 1,930,441 shares of company stock worth $21,099,751. Insiders own 21.50% of the company's stock.

Institutional Investors Weigh In On Red Cat

A number of hedge funds have recently added to or reduced their stakes in the business. Sanctuary Advisors LLC acquired a new position in shares of Red Cat in the third quarter worth $25,000. Sheets Smith Wealth Management purchased a new position in Red Cat in the third quarter valued at $51,000. United Capital Management of KS Inc. acquired a new position in Red Cat during the 3rd quarter worth $108,000. XTX Topco Ltd increased its holdings in 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 during the period. Finally, Pekin Hardy Strauss Inc. acquired a new stake in Red Cat in the 3rd quarter valued at about $138,000. 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.