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

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price dropped 7.2% during mid-day trading on Tuesday after an insider sold shares in the company. The stock traded as low as $12.80 and last traded at $13.07. Approximately 4,423,657 shares traded hands during trading, an increase of 90% from the average daily 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 business’s stock in a transaction that occurred on Monday, December 30th. The shares were 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 owns 585,190 shares in the company, valued at $8,333,105.60. The trade was a 2.50 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider George Michael Matus sold 309,491 shares of the firm’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 owns 304,406 shares of the company’s stock, valued at approximately $4,343,873.62. This trade represents a 50.41 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In other news, insider George Michael Matus sold 72,093 shares of the company’s stock in a transaction on Tuesday, December 24th. The stock was sold at an average price of $12.10, for a total transaction of $872,325.30. Following the transaction, the insider now directly owns 613,897 shares of the company’s stock, valued at approximately $7,428,153.70. This represents a 10.51 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink.

Red Cat Trading Down 8.8 %

The stock has a 50-day moving average price of $7.21 and a two-hundred day moving average price of $4.08. The stock has a market cap of $1.03 billion, a price-to-earnings ratio of -27.93 and a beta of 1.33.

Red Cat (NASDAQ:RCAT) last released its 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 quarter last year, the firm earned ($0.11) earnings per share. Research analysts predict that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Red Cat

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