Red Cat (NASDAQ:RCAT) Shares Gap Down After Insider Selling

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares gapped down prior to trading on Tuesday after an insider sold shares in the company. The stock had previously closed at $14.09, but opened at $13.80. Red Cat shares last traded at $13.64, with a volume of 2,970,165 shares.

Specifically, Director Joseph David Freedman sold 15,000 shares of the 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 transaction, the director now directly owns 585,190 shares in the company, valued at $8,333,105.60. This represents a 2.50 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider George Michael Matus sold 309,491 shares of the company’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 completion of the sale, the insider now directly owns 304,406 shares of the company’s stock, valued at $4,343,873.62. The trade was a 50.41 % decrease in their position. The disclosure for this sale can be found here. In related news, insider George Michael Matus sold 72,093 shares of the company’s stock in a transaction on Tuesday, December 24th. The shares were 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 owns 613,897 shares in the company, valued at $7,428,153.70. This represents a 10.51 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link.

Red Cat Price Performance

The stock has a market capitalization of $1.08 billion, a price-to-earnings ratio of -29.30 and a beta of 1.33. The business has a 50 day simple moving average of $6.79 and a 200-day simple moving average of $3.90.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings results 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 period last year, the company posted ($0.11) earnings per share. As a group, equities analysts predict that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current year.

Hedge Funds Weigh In On Red Cat

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RCAT. Renaissance Technologies LLC acquired a new position in Red Cat in the 2nd quarter valued at $267,000. XTX Topco Ltd increased its position in Red Cat by 390.9% during the second quarter. XTX Topco Ltd now owns 58,895 shares of the company’s stock worth $68,000 after acquiring an additional 46,897 shares during the period. PVG Asset Management Corp acquired a new stake in Red Cat in the 2nd quarter worth about $63,000. Sheets Smith Wealth Management acquired a new position in shares of Red Cat during the 3rd quarter worth approximately $51,000. Finally, United Capital Management of KS Inc. bought a new position in shares of Red Cat during the third quarter worth approximately $108,000. 37.97% of the stock is owned by institutional investors.

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.