Red Cat Holdings, Inc. (NASDAQ:RCAT) Stock Gaps Up Before Trading

On Thursday, Red Cat Holdings, Inc. (NASDAQ:RCAT) saw its stock price gapping up substantially before the start of trading. The stock previously closed at $11.89, but opened at a higher price of $12.16. In the latest trading session, shares were last seen at $13.41, with a noteworthy trading volume of 3,680,875 shares.

Recent Trading Activity

Despite the positive opening, Red Cat's stock experienced a decline of 8.6%. The company currently holds a market capitalization of $982.77 million, along with a P/E ratio of -26.65 and a beta of 1.33. For a better understanding of its stock performance, Red Cat has a 50-day moving average of $6.79 and a 200-day moving average of $3.86.

Earnings Report Insights

Red Cat recently released its quarterly earnings data on December 16. The reported earnings per share (EPS) were ($0.18), which fell short of the consensus estimate of $0.09 by a margin of ($0.27). The company has reported a negative return on equity of 66.19% and a negative net margin of 162.50%. Comparatively, during the same quarter last year, the EPS was reported at ($0.11). Analysts anticipate that Red Cat Holdings, Inc. will have an average EPS of -0.39 for the current year.

Insider Trading Events

In recent insider trading activity, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the company on December 18 at an average price of $8.29. This transaction totaled approximately $2,726,813. Following this trade, Liuzza, Jr. holds 681,072 shares in the company, with a total value of about $5,646,086.88, which represents a 32.57% reduction in his ownership. Additionally, CEO Jeffrey M. Thompson sold 392,551 shares on December 23 at an average price of $11.34, totaling $4,451,528.34. Post-sale, he retains 13,121,898 shares in the business, valued at approximately $148,802,323.32, marking a 2.90% decrease in his ownership. In total, insiders have sold 1,915,441 shares in the past ninety days, worth around $20,886,151. Corporate insiders currently own 21.50% of the company’s shares.

Institutional Investment Changes

Recent changes from hedge funds have influenced their positions in Red Cat Holdings. Sanctuary Advisors LLC has acquired a new stake worth about $25,000 in the third quarter. Similarly, Sheets Smith Wealth Management invested approximately $51,000 in Red Cat during the same period. United Capital Management of KS Inc. also purchased shares valued at about $108,000. XTX Topco Ltd significantly raised its stake by 390.9% in the second quarter, now owning 58,895 shares after purchasing an additional 46,897 shares. Lastly, Pekin Hardy Strauss Inc. has taken a new position valued at approximately $138,000. Currently, 37.97% of Red Cat's stock is owned by institutional investors and hedge funds.

Company Overview

Red Cat Holdings, Inc. specializes in providing diverse products, services, and solutions tailored for the drone industry. The company operates through two key segments: Enterprise and Consumer. It focuses on creating infrastructure for managing drone fleets, enabling remote services, and navigating complex industrial environments effectively.

RedCat, Stock, Trading