Red Cat Holdings, Inc. (NASDAQ:RCAT) Shares Soar – Details Inside

Red Cat Holdings, Inc. (NASDAQ:RCAT) experienced a significant jump in its stock price just before trading began on Thursday. The stock closed at $11.89 the previous day but opened at $12.16, marking an increase in value. In recent trading, shares reached a last price of $13.41, with approximately 3,680,875 shares changing hands.

Stock Performance Overview

Despite the initial rise, Red Cat's shares saw a decline of 8.6%. The company boasts a market capitalization of $982.77 million, with a P/E ratio of -26.65 and a beta of 1.33. Its 50-day moving average sits at $6.79, while the 200-day moving average is at $3.86.

On December 16, Red Cat released its quarterly earnings report, revealing a loss of ($0.18) per share, falling short of the anticipated $0.09 by ($0.27). The company also reported a negative return on equity of 66.19%, alongside a net margin of -162.50%. Comparing year-over-year performance, last year they posted a loss of ($0.11) per share.

Looking forward, stock analysts predict that Red Cat Holdings will report an EPS of -0.39 for the current financial year.

Insider Trading Activity

In recent insider trading activity, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares on December 18 at an average price of $8.29, totaling approximately $2,726,813.12. Following this sale, he retains 681,072 shares valued at $5,646,086.88. This transaction represents a decrease of 32.57% in his ownership of the stock.

Additionally, CEO Jeffrey M. Thompson sold 392,551 shares on December 23 at an average price of $11.34, amounting to a total of about $4,451,528.34. After this sale, he owns 13,121,898 shares valued at $148,802,323.32, reflecting a decrease of 2.90% in his shareholding.

Over the past ninety days, insiders sold a total of 1,915,441 shares, valued at $20,886,151. Currently, corporate insiders possess 21.50% of the company's shares.

Institutional Investor Activity

Several hedge funds have recently adjusted their stakes in Red Cat Holdings. For instance, Sanctuary Advisors LLC acquired a new stake worth approximately $25,000 in the third quarter, while Sheets Smith Wealth Management invested about $51,000. United Capital Management of KS Inc. purchased a stake valued at roughly $108,000, and XTX Topco Ltd increased its interest by 390.9%, now holding 58,895 shares after an additional purchase.

Pekin Hardy Strauss Inc. also initiated a new position estimated at $138,000 during the third quarter. Presently, institutional investors and hedge funds collectively hold 37.97% of the stock.

About Red Cat Holdings, Inc.

Red Cat Holdings, Inc. focuses on providing a wide range of products, services, and solutions within the drone industry. The company operates through two segments: Enterprise and Consumer. It has developed infrastructure to manage drone fleets, offering remote services and enabling navigation in industrial environments and military operations.

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