Red Cat (NASDAQ:RCAT) Stock Price Down 8.2% – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price fell 8.2% on Tuesday . The company traded as low as $10.02 and last traded at $9.87. 4,294,217 shares traded hands during mid-day trading, a decline of 56% from the average session volume of 9,692,133 shares. The stock had previously closed at $10.75.

Red Cat Stock Down 9.5 %

The firm’s 50-day simple moving average is $10.06 and its 200 day simple moving average is $5.87. 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 stock has a market capitalization of $780.20 million, a P/E ratio of -18.08 and a beta of 1.24.

Red Cat (NASDAQ:RCAT) last released its earnings results on Monday, December 16th. The company reported ($0.18) earnings per share 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 prior year, the firm earned ($0.11) earnings per share. As a group, research analysts expect that Red Cat Holdings, Inc. will post -0.5 EPS for the current year.

Insider Activity at Red Cat

In other news, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the stock in a transaction that occurred 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 owns 681,072 shares in the company, valued at approximately $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 accessible through this link. Also, insider George Michael Matus sold 112,686 shares of the business’s stock in a transaction on Wednesday, December 18th. The shares were sold at an average price of $9.20, for a total value of $1,036,711.20. Following the completion of the sale, the insider now owns 973,103 shares of the company’s stock, valued at $8,952,547.60. This trade represents a 10.38 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 1,930,441 shares of company stock worth $21,099,751. Insiders own 21.50% of the company’s stock.

Institutional Trading of Red Cat

Institutional investors have recently modified their holdings of the stock. Sanctuary Advisors LLC acquired a new position in Red Cat in the third quarter valued at about $25,000. Twin Tree Management LP bought a new position in Red Cat in the fourth quarter valued at approximately $28,000. Sheets Smith Wealth Management bought a new stake in Red Cat during the third quarter worth $51,000. SBI Securities Co. Ltd. acquired a new stake in shares of Red Cat in the 4th quarter valued at $60,000. Finally, United Capital Management of KS Inc. bought a new position in shares of Red Cat in the 3rd quarter valued at $108,000. 37.97% of the stock is currently 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.