Red Cat (NASDAQ:RCAT) Shares Gap Up – Still a Buy?

by · The Markets Daily

Red Cat Holdings, Inc. (NASDAQ:RCAT – Get Free Report) shares gapped up prior to trading on Friday . The stock had previously closed at $11.93, but opened at $12.32. Red Cat shares last traded at $13.01, with a volume of 2,269,276 shares trading hands.

Red Cat Trading Up 11.0 %

The company has a market capitalization of $1.06 billion, a price-to-earnings ratio of -28.78 and a beta of 1.33. The company has a 50 day moving average price of $7.59 and a 200 day moving average price of $4.20.

Red Cat (NASDAQ:RCAT – Get Free Report) last announced its quarterly earnings data 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 net margin of 162.50% and a negative return on equity of 66.19%. During the same quarter last year, the business earned ($0.11) earnings per share. Equities analysts predict that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current year.

Insiders Place Their Bets

In other Red Cat 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 transaction, the director now directly owns 681,072 shares in the company, valued at approximately $5,646,086.88. The trade was a 32.57 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Joseph David Freedman sold 15,000 shares of the stock in a transaction dated Monday, December 30th. The stock was sold at an average price of $14.24, for a total value of $213,600.00. Following the completion of the sale, the director now owns 585,190 shares of the company’s stock, valued at $8,333,105.60. This trade represents a 2.50 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have 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

Large investors have recently made changes to their positions in the stock. Sanctuary Advisors LLC bought a new stake in Red Cat in the 3rd quarter valued at approximately $25,000. Wolverine Trading LLC acquired a new position in Red Cat during the third quarter worth $233,000. State Street Corp grew its position in Red Cat by 44.9% in the third quarter. State Street Corp now owns 221,958 shares of the company’s stock valued at $564,000 after purchasing an additional 68,800 shares in the last quarter. Centiva Capital LP acquired a new stake in Red Cat in the 3rd quarter valued at $207,000. Finally, Corsair Capital Management L.P. bought a new stake in Red Cat during the 3rd quarter worth about $308,000. Institutional investors own 37.97% of the company’s stock.

About Red Cat

(Get Free Report)

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.

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