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

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) gapped down prior to trading on Monday . The stock had previously closed at $8.79, but opened at $8.20. Red Cat shares last traded at $8.14, with a volume of 2,267,429 shares trading hands.

Red Cat Price Performance

The stock has a market cap of $700.28 million, a price-to-earnings ratio of -16.18 and a beta of 1.24. The stock’s 50 day moving average price is $10.02 and its two-hundred day moving average price is $5.52. The company has a quick ratio of 0.60, a current ratio of 1.43 and a debt-to-equity ratio of 0.30.

Red Cat (NASDAQ:RCAT) last released 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 232.62% and a negative return on equity of 96.00%. During the same period in the previous year, the business posted ($0.11) EPS. Equities research analysts forecast that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Insider Transactions at Red Cat

In other Red Cat news, insider George Michael Matus sold 309,491 shares of the firm’s stock in a transaction that occurred 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 sale, the insider now directly owns 304,406 shares of the company’s stock, valued at approximately $4,343,873.62. This trade represents a 50.41 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Joseph David Freedman sold 15,000 shares of the business’s stock in a transaction that occurred 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 of the company’s stock, valued at $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. Insiders have sold 1,930,441 shares of company stock valued at $21,099,751 in the last 90 days. 21.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Red Cat

A number of institutional investors have recently added to or reduced their stakes in RCAT. Renaissance Technologies LLC acquired a new position in Red Cat during the second quarter worth $267,000. Corsair Capital Management L.P. purchased a new stake in shares of Red Cat during the third quarter worth about $308,000. Wolverine Trading LLC acquired a new position in shares of Red Cat during the 3rd quarter worth about $233,000. Centiva Capital LP purchased a new position in Red Cat in the 3rd quarter valued at about $207,000. Finally, State Street Corp boosted 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 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.

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.