Red Cat (NASDAQ:RCAT) Trading Down 8.8% – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price traded down 8.8% during trading on Wednesday . The stock traded as low as $12.10 and last traded at $12.85. 9,768,720 shares were traded during trading, an increase of 315% from the average session volume of 2,351,939 shares. The stock had previously closed at $14.09.

Red Cat Price Performance

The company has a market cap of $956.32 million, a price-to-earnings ratio of -25.93 and a beta of 1.33. The firm has a fifty day simple moving average of $7.59 and a 200 day simple moving average of $4.20.

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 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 quarter in the prior year, the firm earned ($0.11) EPS. Analysts expect that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the firm’s stock in a transaction on Wednesday, December 18th. The stock was sold at an average price of $8.29, for a total value of $2,726,813.12. Following the completion of the transaction, the director now directly owns 681,072 shares of the company’s stock, valued at $5,646,086.88. This trade represents a 32.57 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider George Michael Matus sold 112,686 shares of Red Cat stock in a transaction on Wednesday, December 18th. The stock was sold at an average price of $9.20, for a total transaction of $1,036,711.20. Following the sale, the insider now owns 973,103 shares in the company, valued at $8,952,547.60. This represents a 10.38 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 1,930,441 shares of company stock worth $21,099,751 in the last ninety days. Insiders own 21.50% of the company’s stock.

Hedge Funds Weigh In On Red Cat

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