Red Cat (NASDAQ:RCAT) Shares Gap Up – Time to Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price gapped up before the market opened on Wednesday . The stock had previously closed at $8.46, but opened at $8.92. Red Cat shares last traded at $8.72, with a volume of 3,049,830 shares.

Red Cat Trading Up 2.0 %

The company has a quick ratio of 0.60, a current ratio of 1.43 and a debt-to-equity ratio of 0.30. The stock has a market capitalization of $691.86 million, a P/E ratio of -15.97 and a beta of 1.32. The company has a fifty day simple moving average of $9.52 and a two-hundred day simple moving average of $5.12.

Red Cat (NASDAQ:RCAT) 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 return on equity of 96.00% and a negative net margin of 232.62%. During the same period in the prior year, the firm posted ($0.11) EPS. On average, sell-side analysts expect that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Insider Buying and Selling at Red Cat

In other news, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of the stock in a transaction dated Friday, December 20th. The shares were sold at an average price of $10.44, for a total value of $1,188,312.12. Following the transaction, the executive now directly owns 558,325 shares of the company’s stock, valued at $5,828,913. This represents a 16.93 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider George Michael Matus sold 309,491 shares of the company’s stock in a transaction on Thursday, December 26th. The shares were sold at an average price of $14.27, for a total value of $4,416,436.57. Following the completion of the transaction, the insider now directly owns 304,406 shares in the company, valued at approximately $4,343,873.62. This represents a 50.41 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 1,930,441 shares of company stock worth $21,099,751 over the last quarter. 21.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Renaissance Technologies LLC acquired a new position in Red Cat in the 2nd quarter worth about $267,000. Corsair Capital Management L.P. bought a new stake in shares of Red Cat during the 3rd quarter valued at about $308,000. Wolverine Trading LLC acquired a new stake in Red Cat in the third quarter worth $233,000. Centiva Capital LP bought a new stake in Red Cat in the 3rd quarter valued at about $207,000. Finally, State Street Corp raised its position in shares of Red Cat by 44.9% during the third quarter. State Street Corp now owns 221,958 shares of the company’s stock worth $564,000 after purchasing an additional 68,800 shares during the period. Institutional investors 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.