Red Cat (NASDAQ:RCAT) Stock Price Down 3.6% – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price traded down 3.6% on Thursday . The company traded as low as $8.39 and last traded at $8.43. 5,155,982 shares changed hands during mid-day trading, a decline of 51% from the average session volume of 10,620,210 shares. The stock had previously closed at $8.75.

Red Cat Trading Down 5.1 %

The stock has a 50-day simple moving average of $9.62 and a two-hundred day simple moving average of $5.15. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.60 and a current ratio of 1.43. The firm has a market cap of $665.41 million, a PE ratio of -15.37 and a beta of 1.32.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings results on Monday, December 16th. The company reported ($0.18) EPS for the quarter, missing the consensus estimate of $0.09 by ($0.27). Red Cat had a negative net margin of 232.62% and a negative return on equity of 96.00%. During the same quarter in the previous year, the business posted ($0.11) EPS. As a group, sell-side analysts anticipate that Red Cat Holdings, Inc. will post -0.5 EPS for the current year.

Insiders Place Their Bets

In other news, CEO Jeffrey M. Thompson sold 392,551 shares of the stock in a transaction on Monday, December 23rd. The stock was sold at an average price of $11.34, for a total transaction of $4,451,528.34. Following the transaction, the chief executive officer now owns 13,121,898 shares of the company’s stock, valued at approximately $148,802,323.32. This represents a 2.90 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Joseph David Freedman sold 15,000 shares of the firm’s stock in a transaction dated Monday, December 30th. The shares were sold at an average price of $14.24, for a total value of $213,600.00. Following the sale, the director now directly owns 585,190 shares in the company, valued at approximately $8,333,105.60. The trade was a 2.50 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 1,930,441 shares of company stock worth $21,099,751 in the last three months. 21.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On Red Cat

Several institutional investors have recently added to or reduced their stakes in RCAT. Sanctuary Advisors LLC purchased a new position in shares of Red Cat in the third quarter worth about $25,000. Sheets Smith Wealth Management purchased a new position in Red Cat during the third quarter valued at approximately $51,000. PVG Asset Management Corp purchased a new position in Red Cat during the second quarter valued at approximately $63,000. XTX Topco Ltd raised 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 valued at $68,000 after acquiring an additional 46,897 shares in the last quarter. Finally, United Capital Management of KS Inc. purchased a new stake in shares of Red Cat in the third quarter valued at approximately $108,000. Institutional investors and hedge funds 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.