Red Cat (NASDAQ:RCAT) Shares Gap Down Following Insider Selling

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) gapped down before the market opened on Tuesday after an insider sold shares in the company. The stock had previously closed at $14.09, but opened at $13.80. Red Cat shares last traded at $13.64, with a volume of 2,970,165 shares traded.

Specifically, Director Joseph David Freedman sold 15,000 shares of the business’s stock in a transaction on Monday, December 30th. The shares were sold at an average price of $14.24, for a total transaction of $213,600.00. Following the completion of the transaction, the director now owns 585,190 shares of the company’s stock, valued at approximately $8,333,105.60. The trade was a 2.50 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, insider George Michael Matus sold 309,491 shares of the business’s stock in a transaction on Thursday, December 26th. The stock was sold at an average price of $14.27, for a total value of $4,416,436.57. Following the transaction, the insider now owns 304,406 shares of the company’s stock, valued at $4,343,873.62. This trade represents a 50.41 % decrease in their position. The disclosure for this sale can be found here. In related news, insider George Michael Matus sold 72,093 shares of the company’s stock in a transaction on Tuesday, December 24th. The shares were sold at an average price of $12.10, for a total transaction of $872,325.30. Following the completion of the transaction, the insider now directly owns 613,897 shares in the company, valued at $7,428,153.70. This represents a 10.51 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link.

Red Cat Price Performance

The business has a 50 day moving average of $7.21 and a 200 day moving average of $4.08. The firm has a market capitalization of $1.03 billion, a price-to-earnings ratio of -27.93 and a beta of 1.33.

Red Cat (NASDAQ:RCAT) last issued 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 period in the prior year, the firm earned ($0.11) EPS. On average, sell-side analysts forecast that Red Cat Holdings, Inc. will post -0.39 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Sanctuary Advisors LLC bought a new position in shares of Red Cat in the 3rd quarter worth $25,000. Sheets Smith Wealth Management acquired a new position in Red Cat in the third quarter valued at about $51,000. PVG Asset Management Corp bought a new position in Red Cat during the second quarter worth about $63,000. XTX Topco Ltd boosted its stake in Red Cat by 390.9% during 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 during the last quarter. Finally, United Capital Management of KS Inc. acquired a new position in Red Cat during the third quarter valued at approximately $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.