Red Cat (NASDAQ:RCAT) Trading 1.4% Higher – Still a Buy?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) traded up 1.4% on Wednesday . The company traded as high as $9.44 and last traded at $8.58. 5,169,732 shares were traded during trading, a decline of 51% from the average session volume of 10,489,961 shares. The stock had previously closed at $8.46.

Red Cat Price Performance

The stock’s 50-day simple moving average is $9.52 and its two-hundred day simple moving average is $5.12. The firm has a market cap of $702.76 million, a P/E ratio of -16.17 and a beta of 1.32. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.43 and a quick ratio of 0.60.

Red Cat (NASDAQ:RCAT) last released its earnings results 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 return on equity of 96.00% and a negative net margin of 232.62%. During the same period in the prior year, the company earned ($0.11) EPS. Equities research analysts forecast that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Insider Buying and Selling at Red Cat

In other news, 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 sale, the director now 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider George Michael Matus sold 112,686 shares of the stock in a transaction that occurred on Wednesday, December 18th. The shares were sold at an average price of $9.20, for a total transaction of $1,036,711.20. Following the completion of the transaction, the insider now directly owns 973,103 shares of the company’s stock, valued at $8,952,547.60. The trade was a 10.38 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 1,930,441 shares of company stock valued at $21,099,751. 21.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in RCAT. Sanctuary Advisors LLC acquired a new position in shares of Red Cat in the third quarter worth about $25,000. Regency Capital Management Inc. DE acquired a new position in shares of Red Cat in the fourth quarter worth about $130,000. Myecfo LLC acquired a new position in shares of Red Cat in the fourth quarter worth about $193,000. Sheets Smith Wealth Management acquired a new position in shares of Red Cat in the third quarter worth about $51,000. Finally, Kieckhefer Group LLC acquired a new position in shares of Red Cat in the fourth quarter worth about $296,000. 37.97% of the stock is currently owned by institutional investors and hedge funds.

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.