Red Cat (NASDAQ:RCAT) Sees Large Volume Increase – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares saw strong trading volume on Tuesday . 4,470,246 shares traded hands during 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 Price Performance

The business has a 50 day simple moving average of $6.40 and a 200 day simple moving average of $3.72. The company has a market capitalization of $953.11 million, a price-to-earnings ratio of -25.85 and a beta of 1.33.

Red Cat (NASDAQ:RCAT) last announced its earnings results on Monday, December 16th. The company reported ($0.18) 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 firm earned ($0.11) EPS. On average, equities research analysts predict that Red Cat Holdings, Inc. will post -0.39 EPS for the current year.

Insider Activity at Red Cat

In related news, Director Joseph David Freedman sold 50,000 shares of the business’s stock in a transaction 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 completion of the transaction, the director now directly owns 635,190 shares of the company’s stock, valued at $6,351,900. The trade was a 7.30 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the stock in a transaction dated Wednesday, December 18th. The shares were sold at an average price of $8.29, for a total value of $2,726,813.12. Following the completion of the sale, the director now directly owns 681,072 shares in the company, valued at $5,646,086.88. This represents a 32.57 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 778,727 shares of company stock worth $7,117,428. Corporate insiders own 21.50% of the company’s stock.

Institutional Investors Weigh In On Red Cat

A number of large investors have recently modified their holdings of RCAT. Sanctuary Advisors LLC purchased a new position in shares of Red Cat in the 3rd quarter valued at about $25,000. Sheets Smith Wealth Management acquired a new position in shares of Red Cat in the 3rd quarter valued at $51,000. United Capital Management of KS Inc. acquired a new stake in Red Cat during the 3rd quarter worth $108,000. Pekin Hardy Strauss Inc. acquired a new position in Red Cat in the third quarter valued at $138,000. Finally, PVG Asset Management Corp purchased a new position in shares of Red Cat during the second quarter worth about $63,000. 37.97% of the stock is owned by hedge funds and other 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.