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

Red Cat Holdings, Inc. (NASDAQ:RCAT) was the recipient of unusually large options trading activity on Tuesday. Investors acquired 30,124 call options on the stock. Thisisanincreaseof80% compared to the average volume of 16,695 call options.

Wall Street Analysts Forecast Growth

Separately, Wall Street Zen raised shares of Red Cat from a “sell” rating to a “hold” rating in a research report on Saturday, July 26th.

Red Cat Trading Up 13.4%

Shares of NASDAQ:RCAT opened at $10.01 on Wednesday. Red Cat has a 52 week low of $1.85 and a 52 week high of $15.27. The company’s 50 day moving average is $8.14 and its two-hundred day moving average is $7.23. The company has a market cap of $920.72 million, a PE ratio of -18.54 and a beta of 1.44.

Red Cat (NASDAQ:RCAT) last issued its earnings results on Wednesday, May 14th. The company reported ($0.27) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.10) by ($0.17). As a group, equities research analysts expect that Red Cat will post -0.5 EPS for the current year.

Insider Activity at Red Cat

In other Red Cat news, Director Nicholas Reyland Liuzza, Jr. sold 100,000 shares of the stock in a transaction that occurred on Tuesday, June 10th. The shares were sold at an average price of $8.58, for a total value of $858,000.00. Following the sale, the director directly owned 387,445 shares of the company’s stock, valued at approximately $3,324,278.10. This represents a 20.52% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director Joseph David Freedman sold 150,000 shares of the stock in a transaction that occurred on Monday, June 30th. The shares were sold at an average price of $7.37, for a total transaction of $1,105,500.00. Following the completion of the sale, the director directly owned 165,260 shares in the company, valued at approximately $1,217,966.20. This represents a 47.58% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 350,309 shares of company stock worth $2,635,570. 15.30% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Ring Mountain Capital LLC acquired a new position in shares of Red Cat in the 2nd quarter valued at $78,000. AlphaQuest LLC acquired a new position in shares of Red Cat in the 2nd quarter valued at $67,000. Caitong International Asset Management Co. Ltd boosted its holdings in shares of Red Cat by 28,681.0% in the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 6,044 shares of the company’s stock valued at $44,000 after buying an additional 6,023 shares in the last quarter. Truist Financial Corp acquired a new position in shares of Red Cat in the 2nd quarter valued at $167,000. Finally, Toth Financial Advisory Corp acquired a new position in shares of Red Cat in the 2nd quarter valued at $202,000. Institutional investors and hedge funds own 37.97% of the company’s stock.

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.