Red Cat (NASDAQ:RCAT) Trading 6.8% Higher - Time to Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) shares traded up 6.8% during trading on Monday . The stock traded as high as $13.10 and last traded at $13.09. 5,889,564 shares changed hands during mid-day trading, an increase of 160% from the average session volume of 2,268,817 shares. The stock had previously closed at $12.26.

Red Cat Trading Up 14.9 %

The company has a market cap of $1.13 billion, a price-to-earnings ratio of -30.63 and a beta of 1.33. The stock's 50 day moving average price is $6.79 and its 200 day moving average price is $3.90.

Red Cat (NASDAQ:RCAT - Get Free Report) last released its 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 net margin of 162.50% and a negative return on equity of 66.19%. During the same quarter in the previous year, the company earned ($0.11) earnings per share. On average, equities analysts expect that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the firm's stock in a transaction that occurred 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 transaction, the director now owns 681,072 shares in the company, valued at approximately $5,646,086.88. This trade represents a 32.57 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Joseph David Freedman sold 15,000 shares of the business's stock in a transaction that occurred on Monday, December 30th. The stock was 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 approximately $8,333,105.60. This represents a 2.50 % 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 valued at $21,099,751. 21.50% of the stock is currently owned by company insiders.

Institutional Trading of Red Cat

Several large investors have recently added to or reduced their stakes in RCAT. Renaissance Technologies LLC purchased a new stake in shares of Red Cat during the second quarter valued at approximately $267,000. XTX Topco Ltd grew 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 valued at $68,000 after purchasing an additional 46,897 shares in the last quarter. PVG Asset Management Corp purchased a new stake in Red Cat during the 2nd quarter worth $63,000. Sheets Smith Wealth Management acquired a new position in Red Cat in the 3rd quarter worth $51,000. Finally, United Capital Management of KS Inc. purchased a new position in Red Cat in the 3rd quarter valued at about $108,000. 37.97% of the stock is currently 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.