Red Cat (NASDAQ:RCAT) Trading Down 8.3% – Here’s What Happened

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price was down 8.3% on Wednesday . The stock traded as low as $11.59 and last traded at $11.98. Approximately 4,935,797 shares were traded during mid-day trading, a decline of 54% from the average daily volume of 10,782,812 shares. The stock had previously closed at $13.06.

Red Cat Stock Performance

The company has a market cap of $957.92 million, a P/E ratio of -25.98 and a beta of 1.32. The business has a fifty day simple moving average of $8.22 and a 200 day simple moving average of $4.50.

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 return on equity of 66.19% and a negative net margin of 162.50%. During the same period in the prior year, the firm earned ($0.11) EPS. Equities research analysts expect that Red Cat Holdings, Inc. will post -0.39 EPS for the current year.

Insider Buying and Selling

In other Red Cat news, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of the business’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 directly owns 558,325 shares of the company’s stock, valued at $5,828,913. The trade was a 16.93 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Jeffrey M. Thompson sold 392,551 shares of the firm’s stock in a transaction that occurred on Monday, December 23rd. The shares were sold at an average price of $11.34, for a total transaction of $4,451,528.34. Following the completion of the sale, the chief executive officer now owns 13,121,898 shares in the company, valued at $148,802,323.32. The trade was a 2.90 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,930,441 shares of company stock worth $21,099,751 over the last quarter. 21.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Red Cat

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Renaissance Technologies LLC bought a new position in shares of Red Cat in the second quarter worth $267,000. Corsair Capital Management L.P. bought a new position in Red Cat in the 3rd quarter valued at about $308,000. Wolverine Trading LLC acquired a new position in Red Cat during the 3rd quarter valued at about $233,000. Centiva Capital LP bought a new stake in shares of Red Cat during the 3rd quarter worth about $207,000. Finally, State Street Corp raised its position in shares of Red Cat by 44.9% during 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 in the last quarter. 37.97% of the stock is owned by institutional investors.

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.