Red Cat (NASDAQ:RCAT) Sees Unusually-High Trading Volume – Still a Buy?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) saw unusually-strong trading volume on Tuesday . Approximately 4,470,246 shares were traded during mid-day trading, an increase of 112% from the previous session’s volume of 2,107,741 shares.The stock last traded at $11.61 and had previously closed at $11.03.

Red Cat Stock Up 6.9 %

The company has a market cap of $945.10 million, a price-to-earnings ratio of -25.63 and a beta of 1.33. The firm has a 50 day moving average price of $6.05 and a two-hundred day moving average price of $3.58.

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 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 quarter last year, the company posted ($0.11) EPS. On average, equities analysts expect that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current year.

Insider Transactions at Red Cat

In other Red Cat news, Director Joseph David Freedman sold 50,000 shares of the stock in a transaction that occurred on Friday, December 20th. The stock was sold at an average price of $10.00, for a total transaction of $500,000.00. Following the transaction, the director now directly owns 635,190 shares in the company, valued at approximately $6,351,900. This represents a 7.30 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the firm’s stock in a transaction that occurred on 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 directly owns 681,072 shares of the company’s stock, valued at approximately $5,646,086.88. This trade represents a 32.57 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 778,727 shares of company stock worth $7,117,428 over the last three months. 21.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Renaissance Technologies LLC acquired a new position in shares of Red Cat during the second quarter valued at about $267,000. Corsair Capital Management L.P. acquired a new stake in Red Cat in the third quarter valued at approximately $308,000. Wolverine Trading LLC bought a new stake in shares of Red Cat during the third quarter valued at approximately $233,000. Centiva Capital LP acquired a new position in shares of Red Cat during the third quarter worth approximately $207,000. Finally, State Street Corp lifted its holdings in shares of Red Cat by 44.9% in the 3rd 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. 37.97% of the stock is 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.