Red Cat (NASDAQ:RCAT) Shares Down 7.1% – Here’s What Happened

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) were down 7.1% during mid-day trading on Friday . The stock traded as low as $9.10 and last traded at $9.38. Approximately 5,053,081 shares changed hands during trading, a decline of 51% from the average daily volume of 10,259,613 shares. The stock had previously closed at $10.10.

Red Cat Price Performance

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 stock has a 50-day moving average price of $9.33 and a 200 day moving average price of $4.99. The stock has a market capitalization of $686.18 million, a price-to-earnings ratio of -15.85 and a beta of 1.32.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings data on Monday, December 16th. The company reported ($0.18) EPS for the quarter, missing the consensus estimate 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 period last year, the business earned ($0.11) earnings per share. As a group, equities research analysts expect that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider George Michael Matus sold 112,686 shares of the business’s stock in a transaction dated Wednesday, December 18th. The shares were sold at an average price of $9.20, for a total transaction of $1,036,711.20. Following the completion of the sale, the insider now owns 973,103 shares of the company’s stock, valued at $8,952,547.60. The trade was a 10.38 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Joseph David Freedman sold 50,000 shares of the company’s stock in a transaction dated Friday, December 20th. The stock was sold at an average price of $10.00, for a total transaction of $500,000.00. Following the transaction, the director now owns 635,190 shares of the company’s stock, valued at approximately $6,351,900. This trade represents a 7.30 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 1,930,441 shares of company stock worth $21,099,751. Company insiders own 21.50% of the company’s stock.

Institutional Trading of Red Cat

A number of institutional investors have recently made changes to their positions in RCAT. Centiva Capital LP acquired a new stake in Red Cat during the 3rd quarter worth $207,000. Wolverine Trading LLC acquired a new position in Red Cat during the third quarter worth about $233,000. Corsair Capital Management L.P. purchased a new stake in Red Cat during the 3rd quarter valued at about $308,000. Pekin Hardy Strauss Inc. purchased a new stake in Red Cat during the 3rd quarter valued at about $138,000. Finally, State Street Corp raised its holdings in Red Cat by 44.9% in the 3rd quarter. State Street Corp now owns 221,958 shares of the company’s stock valued at $564,000 after acquiring an additional 68,800 shares during the last quarter. 37.97% of the stock is owned by institutional investors and hedge funds.

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.