Red Cat (NASDAQ:RCAT) Shares Up 9.7% – What’s Next?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shot up 9.7% during mid-day trading on Friday . The stock traded as high as $9.69 and last traded at $9.56. 3,304,310 shares were traded during mid-day 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 Up 2.4 %

The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.60 and a current ratio of 1.43. The company has a market capitalization of $714.72 million, a price-to-earnings ratio of -16.57 and a beta of 1.32. The firm’s 50-day simple moving average is $10.02 and its 200-day simple moving average is $5.42.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings results 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 last year, the business earned ($0.11) earnings per share. Sell-side 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, Director Joseph David Freedman sold 15,000 shares of the business’s stock in a transaction dated Monday, December 30th. The shares were 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the business’s 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 directly owns 681,072 shares of the company’s stock, valued at approximately $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 three months, insiders have sold 1,930,441 shares of company stock worth $21,099,751. Corporate insiders own 21.50% of the company’s stock.

Hedge Funds Weigh In On Red Cat

Institutional investors have recently modified their holdings of the stock. Renaissance Technologies LLC bought a new stake in shares of Red Cat during the second quarter worth $267,000. State Street Corp increased 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 acquiring an additional 68,800 shares in the last quarter. Corsair Capital Management L.P. bought a new stake in shares of Red Cat during the third quarter worth $308,000. Wolverine Trading LLC bought a new stake in shares of Red Cat during the third quarter worth $233,000. Finally, Centiva Capital LP bought a new stake in shares of Red Cat during the third quarter worth $207,000. 37.97% of the stock is owned by institutional investors.

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.