Red Cat (NASDAQ:RCAT) Reaches New 1-Year High – Still a Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price reached a new 52-week high during mid-day trading on Tuesday . The company traded as high as $15.27 and last traded at $14.19, with a volume of 16418037 shares trading hands. The stock had previously closed at $13.20.

Red Cat Stock Down 9.4 %

The stock has a market capitalization of $948.30 million, a PE ratio of -25.72 and a beta of 1.32. The stock has a fifty day moving average of $8.40 and a 200-day moving average of $4.55.

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 net margin of 162.50% and a negative return on equity of 66.19%. During the same period in the previous year, the business earned ($0.11) earnings per share. Equities research analysts expect that Red Cat Holdings, Inc. will post -0.39 EPS for the current year.

Insider Activity at Red Cat

In other Red Cat news, insider George Michael Matus sold 309,491 shares of the firm’s stock in a transaction on Thursday, December 26th. The stock was sold at an average price of $14.27, for a total value of $4,416,436.57. Following the sale, the insider now directly owns 304,406 shares in the company, valued at $4,343,873.62. This trade represents a 50.41 % 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 Joseph David Freedman sold 15,000 shares of the firm’s stock in a transaction on Monday, December 30th. The shares were 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 in the company, valued at approximately $8,333,105.60. This represents a 2.50 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 1,930,441 shares of company stock worth $21,099,751. Company insiders own 21.50% of the company’s stock.

Institutional Trading of Red Cat

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Renaissance Technologies LLC acquired a new stake in shares of Red Cat during the second quarter worth about $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 purchasing an additional 68,800 shares in the last quarter. Corsair Capital Management L.P. acquired a new stake in shares of Red Cat during the third quarter worth about $308,000. Wolverine Trading LLC acquired a new stake in shares of Red Cat during the third quarter worth about $233,000. Finally, Centiva Capital LP acquired a new stake in shares of Red Cat during the third quarter worth about $207,000. Institutional investors and hedge funds own 37.97% of the company’s stock.

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.