Red Cat (NASDAQ:RCAT) Trading Down 7.1% After Insider Selling

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price was down 7.1% during trading on Friday following insider selling activity. The stock traded as low as $12.00 and last traded at $12.46. Approximately 9,302,877 shares changed hands during mid-day trading, an increase of 317% from the average daily volume of 2,232,723 shares. The stock had previously closed at $13.41.

Specifically, insider George Michael Matus sold 309,491 shares of the firm’s stock in a transaction that occurred on Thursday, December 26th. The shares were sold at an average price of $14.27, for a total transaction of $4,416,436.57. Following the sale, the insider now owns 304,406 shares in the company, 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 legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider George Michael Matus sold 72,093 shares of the firm’s stock in a transaction dated Tuesday, December 24th. The stock was sold at an average price of $12.10, for a total value of $872,325.30. Following the completion of the sale, the insider now directly owns 613,897 shares in the company, valued at approximately $7,428,153.70. The trade was a 10.51 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In other news, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of the company’s stock in a transaction dated Friday, December 20th. The shares were sold at an average price of $10.44, for a total transaction of $1,188,312.12. Following the completion of the transaction, the executive now owns 558,325 shares of the company’s stock, valued at $5,828,913. This represents a 16.93 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link.

Red Cat Stock Performance

The firm has a market capitalization of $982.77 million, a PE ratio of -26.65 and a beta of 1.33. The company’s fifty day moving average price is $6.79 and its two-hundred day moving average price is $3.88.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings data on Monday, December 16th. The company reported ($0.18) earnings per share (EPS) for the quarter, missing the consensus estimate 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 quarter in the previous year, the firm earned ($0.11) EPS. On average, equities analysts expect that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current year.

Hedge Funds Weigh In On Red Cat

Hedge funds and other institutional investors have recently modified their holdings of the company. Sanctuary Advisors LLC purchased a new stake in Red Cat during the 3rd quarter worth $25,000. Wolverine Trading LLC purchased a new position in Red Cat in the 3rd quarter worth approximately $233,000. State Street Corp grew its position 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 acquiring an additional 68,800 shares in the last quarter. Centiva Capital LP purchased a new stake in shares of Red Cat during the third quarter valued at approximately $207,000. Finally, Corsair Capital Management L.P. acquired a new position in shares of Red Cat during the third quarter worth $308,000. 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.