Red Cat (NASDAQ:RCAT) Stock Price Down 7.2% Following Insider Selling

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price fell 7.2% on Tuesday following insider selling activity. The stock traded as low as $12.80 and last traded at $13.07. 4,423,657 shares traded hands during trading, an increase of 90% from the average session volume of 2,329,195 shares. The stock had previously closed at $14.09.

Specifically, Director Joseph David Freedman sold 15,000 shares of the stock in a transaction on Monday, December 30th. The stock was sold at an average price of $14.24, for a total transaction of $213,600.00. Following the completion of the transaction, the director now directly owns 585,190 shares in the company, valued at approximately $8,333,105.60. This represents a 2.50 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider George Michael Matus sold 309,491 shares of the company’s stock in a transaction dated 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 transaction, the insider now directly owns 304,406 shares in the company, 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 other Red Cat news, insider George Michael Matus sold 72,093 shares of Red Cat stock in a transaction dated Tuesday, December 24th. The shares were sold at an average price of $12.10, for a total transaction of $872,325.30. Following the completion of the sale, the insider now directly owns 613,897 shares in the company, valued at $7,428,153.70. This trade represents a 10.51 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website.

Red Cat Trading Down 8.8 %

The stock has a market capitalization of $1.03 billion, a price-to-earnings ratio of -27.93 and a beta of 1.33. The firm’s fifty day moving average price is $7.01 and its 200 day moving average price is $4.00.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings results on Monday, December 16th. The company reported ($0.18) EPS for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.27). Red Cat had a negative return on equity of 66.19% and a negative net margin of 162.50%. During the same period last year, the firm earned ($0.11) EPS. On average, analysts forecast that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Red Cat

Several institutional investors have recently bought and sold shares of the company. Sanctuary Advisors LLC acquired a new position in shares of Red Cat in the third quarter worth $25,000. Sheets Smith Wealth Management purchased a new position in Red Cat in the third quarter valued at $51,000. PVG Asset Management Corp purchased a new stake in Red Cat during the 2nd quarter worth about $63,000. XTX Topco Ltd raised its position in Red Cat by 390.9% in the 2nd quarter. XTX Topco Ltd now owns 58,895 shares of the company’s stock valued at $68,000 after purchasing an additional 46,897 shares in the last quarter. Finally, United Capital Management of KS Inc. purchased a new position in shares of Red Cat in the 3rd quarter valued at about $108,000. 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.