Red Cat (NASDAQ:RCAT) Shares Down 5.8% – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT) dropped 5.8% during mid-day trading on Thursday . The company traded as low as $11.44 and last traded at $12.10. Approximately 3,359,620 shares were traded during trading, an increase of 43% from the average daily volume of 2,351,939 shares. The stock had previously closed at $12.85.

Red Cat Stock Performance

The company has a 50-day moving average of $7.41 and a 200-day moving average of $4.14. The stock has a market cap of $935.48 million, a price-to-earnings ratio of -25.37 and a beta of 1.33.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings data 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 162.50% and a negative return on equity of 66.19%. During the same period in the previous year, the business posted ($0.11) earnings per share. As a group, equities research analysts forecast that Red Cat Holdings, Inc. will post -0.39 EPS for the current year.

Insider Buying and Selling at Red Cat

In other news, CEO Jeffrey M. Thompson sold 392,551 shares of the business’s stock in a transaction on Monday, December 23rd. The shares were sold at an average price of $11.34, for a total transaction of $4,451,528.34. Following the completion of the sale, the chief executive officer now directly owns 13,121,898 shares of the company’s stock, valued at $148,802,323.32. The trade was a 2.90 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Joseph David Freedman sold 15,000 shares of the firm’s stock in a transaction dated Monday, December 30th. The stock was sold at an average price of $14.24, for a total value of $213,600.00. Following the completion of the transaction, the director now owns 585,190 shares in the company, valued at approximately $8,333,105.60. This trade represents a 2.50 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 1,930,441 shares of company stock valued at $21,099,751. Insiders own 21.50% of the company’s stock.

Hedge Funds Weigh In On Red Cat

A number of hedge funds have recently made changes to their positions in the business. Sanctuary Advisors LLC purchased a new position in Red Cat in the 3rd quarter valued at about $25,000. Wolverine Trading LLC acquired a new stake in Red Cat during the 3rd quarter valued at approximately $233,000. State Street Corp increased its holdings in Red Cat by 44.9% in the third quarter. State Street Corp now owns 221,958 shares of the company’s stock valued at $564,000 after buying an additional 68,800 shares during the last quarter. Centiva Capital LP bought a new position in Red Cat during the 3rd quarter worth approximately $207,000. Finally, Corsair Capital Management L.P. bought a new stake in Red Cat during the third quarter valued at $308,000. Hedge funds and other institutional investors 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.