Red Cat (NASDAQ:RCAT) Stock Price Up 9.7% - Here's Why

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

Red Cat Stock Performance

The firm's 50 day moving average price is $10.04 and its two-hundred day moving average price is $5.63. The firm has a market cap of $774.35 million, a PE ratio of -17.85 and a beta of 1.24. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.60 and a current ratio of 1.43.

Red Cat (NASDAQ:RCAT - Get Free Report) last issued 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 in the previous year, the company earned ($0.11) EPS. On average, research analysts forecast that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Insider Activity

In other Red Cat news, insider George Michael Matus sold 112,686 shares of the firm's stock in a transaction dated Wednesday, December 18th. The shares were sold at an average price of $9.20, for a total value of $1,036,711.20. Following the transaction, the insider now owns 973,103 shares of the company's stock, valued at $8,952,547.60. This trade represents a 10.38 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 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 sale, the director now owns 585,190 shares in the company, valued at $8,333,105.60. The trade was a 2.50 % decrease in their position. 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 three months. Corporate insiders own 21.50% of the company's stock.

Institutional Trading of Red Cat

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Sanctuary Advisors LLC bought a new stake in shares of Red Cat in the 3rd quarter valued at about $25,000. Regency Capital Management Inc. DE bought a new stake in shares of Red Cat during the 4th quarter worth about $130,000. Atria Wealth Solutions Inc. acquired a new stake in Red Cat during the 4th quarter worth approximately $134,000. U.S. Capital Wealth Advisors LLC acquired a new position in shares of Red Cat during the 4th quarter worth approximately $139,000. Finally, Gladstone Institutional Advisory LLC lifted its position in shares of Red Cat by 34.0% during the 4th quarter. Gladstone Institutional Advisory LLC now owns 13,400 shares of the company's stock valued at $172,000 after acquiring an additional 3,400 shares during the period. Institutional investors own 37.97% of the company's stock.

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.