Stocks

Red Cat (NASDAQ:RCAT) Shares Gap Up – Here’s What Happened

Published December 28, 2024

Red Cat Holdings, Inc. (NASDAQ:RCAT) saw its stock price increase significantly before market opening on Thursday. After closing at $11.89, the stock opened at $12.16. It continued to perform well during trading, reaching a last recorded price of $13.41, with a trading volume of 3,680,875 shares.

Red Cat Trading Down 8.6 %

Despite the morning increase, Red Cat's stock is currently down 8.6%. The company's market capitalization stands at $982.77 million, with a P/E ratio of -26.65 and a beta of 1.33, indicating its stock's volatility in relation to the market. Additionally, Red Cat has a 50-day moving average of $6.79 and a 200-day moving average of $3.86.

Red Cat recently released its quarterly earnings data on December 16th. The report showed an earnings per share (EPS) of ($0.18), which was below the consensus estimate of $0.09 by $0.27. The company has faced significant challenges, reflected in its negative return on equity of 66.19% and a net margin of -162.50%. To compare, Red Cat posted an EPS of ($0.11) in the same quarter last year. Analysts forecast that the company may report an EPS of -0.39 for the current year.

Insider Buying and Selling at Red Cat

In insider trading, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of Red Cat on December 18th, at an average price of $8.29, amounting to a total of approximately $2.73 million. This sale decreased his ownership by 32.57%, leaving him with 681,072 shares valued around $5.65 million. Furthermore, CEO Jeffrey M. Thompson sold 392,551 shares on December 23rd, with an average price of $11.34, totaling about $4.45 million. Post-sale, he directly owns 13,121,898 shares, valued at approximately $148.80 million, representing a 2.90% decrease in his holdings. Over the past ninety days, insiders have sold a total of 1,915,441 shares valued at around $20.89 million. It is noteworthy that corporate insiders currently own 21.50% of Red Cat's stock.

Institutional Inflows and Outflows

Recent changes in ownership among hedge funds indicate increased interest in Red Cat. Sanctuary Advisors LLC acquired a new position in the stock during the third quarter, valued at around $25,000. Sheets Smith Wealth Management also purchased a new stake worth about $51,000 in the same quarter. United Capital Management of KS Inc. bought into Red Cat with an investment of approximately $108,000. XTX Topco Ltd raised its stake in Red Cat by 390.9% as of the second quarter and now holds 58,895 shares valued at $68,000 after acquiring an additional 46,897 shares last quarter. Pekin Hardy Strauss Inc. also entered a new position in Red Cat valued at about $138,000. Currently, institutional investors and hedge funds collectively own 37.97% of the stock.

Red Cat Company Profile

Red Cat Holdings, Inc. is engaged in providing a variety of products, services, and solutions tailored for the drone industry. The company is structured into two segments: Enterprise and Consumer. It has developed infrastructure to manage drone fleets, facilitate flying, and offer remote services, particularly in navigating confined industrial spaces and hazardous military environments.

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