Red Cat (NASDAQ:RCAT) Trading Down 8.5% – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares traded down 8.5% on Thursday . The stock traded as low as $9.59 and last traded at $9.98. 5,904,267 shares were traded during trading, a decline of 41% from the average session volume of 9,928,730 shares. The stock had previously closed at $10.91.

Red Cat Stock Down 5.3 %

The firm’s 50 day moving average price is $9.10 and its two-hundred day moving average price is $4.88. The company has a current ratio of 1.43, a quick ratio of 0.60 and a debt-to-equity ratio of 0.30. The company has a market capitalization of $828.05 million, a P/E ratio of -18.99 and a beta of 1.32.

Red Cat (NASDAQ:RCAT) last released its earnings results on Monday, December 16th. The company reported ($0.18) earnings per share for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.27). Red Cat had a negative net margin of 232.62% and a negative return on equity of 96.00%. During the same quarter in the prior year, the company posted ($0.11) earnings per share. Equities research analysts forecast that Red Cat Holdings, Inc. will post -0.5 EPS for the current year.

Insider Activity at Red Cat

In other Red Cat news, Director Joseph David Freedman sold 15,000 shares of the stock in a transaction on Monday, December 30th. The shares were sold at an average price of $14.24, for a total value of $213,600.00. Following the completion of the sale, the director now owns 585,190 shares in the company, valued at $8,333,105.60. This trade represents a 2.50 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of Red Cat stock in a transaction dated Wednesday, December 18th. The shares were sold at an average price of $8.29, for a total transaction of $2,726,813.12. Following the completion of the transaction, the director now directly owns 681,072 shares of the company’s stock, valued at approximately $5,646,086.88. This trade represents a 32.57 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 1,930,441 shares of company stock valued at $21,099,751. 21.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Red Cat

A number of institutional investors have recently bought and sold shares of the business. Centiva Capital LP acquired a new position in shares of Red Cat during the 3rd quarter worth approximately $207,000. Wolverine Trading LLC bought a new position in Red Cat during the third quarter worth $233,000. Corsair Capital Management L.P. acquired a new position in shares of Red Cat in the third quarter valued at $308,000. Pekin Hardy Strauss Inc. bought a new position in shares of Red Cat in the third quarter valued at about $138,000. Finally, State Street Corp lifted its stake in shares of Red Cat by 44.9% during the 3rd quarter. State Street Corp now owns 221,958 shares of the company’s stock worth $564,000 after buying an additional 68,800 shares during the last quarter. Institutional investors and hedge funds own 37.97% of the company’s stock.

About Red Cat

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.