Investors Purchase Large Volume of Call Options on Red Cat (NASDAQ:RCAT)

Red Cat Holdings, Inc. (NASDAQ:RCAT) was the target of unusually large options trading on Tuesday. Investors purchased 33,080 call options on the stock. This represents an increase of 215% compared to the average daily volume of 10,502 call options.

Red Cat Trading Down 8.8 %

RCAT opened at $12.85 on Wednesday. The stock has a market cap of $1.03 billion, a PE ratio of -27.93 and a beta of 1.33. Red Cat has a 1 year low of $0.56 and a 1 year high of $14.91. The stock’s 50 day simple moving average is $7.01 and its 200-day simple moving average is $4.00.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings data 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 quarter last year, the firm posted ($0.11) earnings per share. Equities analysts forecast that Red Cat will post -0.39 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of the company’s stock in a transaction on Friday, December 20th. The shares were sold at an average price of $10.44, for a total transaction of $1,188,312.12. Following the completion of the transaction, the executive now directly owns 558,325 shares in the company, valued at $5,828,913. This represents a 16.93 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Joseph David Freedman sold 15,000 shares of the firm’s stock in a transaction on Monday, December 30th. The stock was sold at an average price of $14.24, for a total transaction of $213,600.00. Following the completion of the sale, the director now owns 585,190 shares in the company, valued at $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 ninety days, insiders sold 1,930,441 shares of company stock worth $21,099,751. Corporate insiders own 21.50% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the stock. Renaissance Technologies LLC bought a new stake in shares of Red Cat in the 2nd quarter worth about $267,000. XTX Topco Ltd boosted its holdings in shares of Red Cat by 390.9% in the 2nd quarter. XTX Topco Ltd now owns 58,895 shares of the company’s stock worth $68,000 after acquiring an additional 46,897 shares in the last quarter. PVG Asset Management Corp acquired a new position in shares of Red Cat in the 2nd quarter worth approximately $63,000. Sheets Smith Wealth Management bought a new position in Red Cat in the 3rd quarter valued at $51,000. Finally, United Capital Management of KS Inc. acquired a new position in Red Cat in the third quarter worth $108,000. 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.