Red Cat (NASDAQ:RCAT) Stock Price Down 15.2% – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price dropped 15.2% during trading on Monday . The stock traded as low as $8.29 and last traded at $8.56. Approximately 13,174,926 shares changed hands during trading, a decline of 4% from the average daily volume of 13,691,270 shares. The stock had previously closed at $10.10.

Red Cat Price Performance

The company’s 50 day moving average price is $9.52 and its 200 day moving average price is $5.12. The company has a current ratio of 1.43, a quick ratio of 0.60 and a debt-to-equity ratio of 0.30.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings data 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 return on equity of 96.00% and a negative net margin of 232.62%. During the same quarter last year, the company earned ($0.11) EPS. On average, equities analysts predict that Red Cat Holdings, Inc. will post -0.5 EPS for the current year.

Insider Buying and Selling

In related news, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of the firm’s stock in a transaction on 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 owns 558,325 shares of the company’s stock, valued at $5,828,913. This trade represents a 16.93 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, 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 transaction of $2,726,813.12. Following the transaction, the director now directly owns 681,072 shares of the company’s stock, valued at approximately $5,646,086.88. This trade represents a 32.57 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 1,930,441 shares of company stock valued at $21,099,751 over the last 90 days. Insiders own 21.50% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Centiva Capital LP purchased a new position in Red Cat in the third quarter valued at $207,000. Wolverine Trading LLC purchased a new position in Red Cat in the third quarter valued at $233,000. Corsair Capital Management L.P. purchased a new position in Red Cat in the third quarter valued at $308,000. Pekin Hardy Strauss Inc. purchased a new position in Red Cat in the third quarter valued at $138,000. Finally, State Street Corp increased its holdings in Red Cat by 44.9% in the third quarter. State Street Corp now owns 221,958 shares of the company’s stock valued at $564,000 after buying an additional 68,800 shares in the last quarter. Hedge funds and other 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.