Red Cat (NASDAQ:RCAT) Trading Up 6.5% - Here's What Happened

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s stock price was up 6.5% during mid-day trading on Tuesday . The company traded as high as $10.20 and last traded at $9.94. Approximately 3,007,844 shares changed hands during mid-day trading, a decline of 70% from the average daily volume of 9,900,755 shares. The stock had previously closed at $9.33.

Red Cat Price Performance

The stock has a 50-day moving average price of $8.95 and a 200 day moving average price of $4.83. The company has a market cap of $751.11 million, a price-to-earnings ratio of -20.37 and a beta of 1.32.

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 66.19% and a negative net margin of 162.50%. During the same quarter in the prior year, the company posted ($0.11) EPS. Sell-side analysts expect that Red Cat Holdings, Inc. will post -0.39 EPS for the current fiscal year.

Insider Buying and Selling at Red Cat

In related news, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of Red Cat stock in a transaction dated Wednesday, December 18th. The stock was 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 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 document filed with the SEC, which is accessible through this hyperlink. 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 value of $213,600.00. Following the transaction, the director now directly owns 585,190 shares in the company, valued at $8,333,105.60. The trade was a 2.50 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 1,930,441 shares of company stock worth $21,099,751. Corporate insiders own 21.50% of the company's stock.

Institutional Trading of Red Cat

A number of hedge funds have recently modified their holdings of the stock. Renaissance Technologies LLC bought a new stake in Red Cat in the 2nd quarter valued at about $267,000. XTX Topco Ltd raised its stake in Red Cat by 390.9% during the second quarter. XTX Topco Ltd now owns 58,895 shares of the company's stock worth $68,000 after acquiring an additional 46,897 shares in the last quarter. PVG Asset Management Corp acquired a new position in Red Cat during the 2nd quarter worth approximately $63,000. Sheets Smith Wealth Management bought a new position in Red Cat in the 3rd quarter valued at approximately $51,000. Finally, United Capital Management of KS Inc. bought a new position in Red Cat in the 3rd quarter valued at approximately $108,000. Institutional investors and hedge funds own 37.97% of the company's stock.

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.