Red Cat (NASDAQ:RCAT) Shares Gap Up – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT) gapped up prior to trading on Thursday . The stock had previously closed at $11.89, but opened at $12.16. Red Cat shares last traded at $13.41, with a volume of 3,680,875 shares changing hands.

Red Cat Stock Up 22.1 %

The firm’s 50 day simple moving average is $6.40 and its 200-day simple moving average is $3.72. The company has a market capitalization of $1.16 billion, a PE ratio of -31.57 and a beta of 1.33.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings results on Monday, December 16th. The company reported ($0.18) earnings per share for the quarter, missing analysts’ consensus estimates 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 firm earned ($0.11) EPS. As a group, sell-side analysts anticipate that Red Cat Holdings, Inc. will post -0.39 EPS for the current fiscal year.

Insider Buying and Selling

In other Red Cat news, Director Joseph David Freedman sold 50,000 shares of the company’s stock in a transaction dated Friday, December 20th. The shares were sold at an average price of $10.00, for a total value of $500,000.00. Following the completion of the transaction, the director now directly owns 635,190 shares of the company’s stock, valued at $6,351,900. This represents a 7.30 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the firm’s stock in a transaction dated 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 sale, the director now owns 681,072 shares of the company’s stock, valued at $5,646,086.88. This represents a 32.57 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 778,727 shares of company stock valued at $7,117,428. Corporate insiders own 21.50% of the company’s stock.

Hedge Funds Weigh In On Red Cat

Large investors have recently added to or reduced their stakes in the company. Renaissance Technologies LLC bought a new stake in Red Cat during the second quarter valued at $267,000. XTX Topco Ltd grew its position in shares of 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 buying an additional 46,897 shares during the last quarter. PVG Asset Management Corp acquired a new stake in Red Cat during the second quarter worth about $63,000. Sheets Smith Wealth Management bought a new position in Red Cat in the third quarter worth about $51,000. Finally, United Capital Management of KS Inc. acquired a new position in Red Cat in the third quarter valued at approximately $108,000. 37.97% of the stock is currently owned by institutional investors.

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.