Red Cat (NASDAQ:RCAT) Shares Down 8.6% – Here’s What Happened

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price was down 8.6% on Monday . The stock traded as low as $7.08 and last traded at $7.09. Approximately 2,515,862 shares traded hands during mid-day trading, a decline of 72% from the average daily volume of 8,867,720 shares. The stock had previously closed at $7.76.

Red Cat Price Performance

The firm has a market capitalization of $543.49 million, a PE ratio of -12.56 and a beta of 1.24. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.43 and a quick ratio of 0.60. The business’s 50 day moving average is $10.08 and its two-hundred day moving average is $6.36.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings results 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 96.00% and a negative net margin of 232.62%. During the same period in the prior year, the business posted ($0.11) EPS. As a group, research analysts anticipate that Red Cat Holdings, Inc. will post -0.5 EPS for the current year.

Insider Transactions at Red Cat

In related news, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the business’s stock in a transaction dated Wednesday, December 18th. The shares were 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 $5,646,086.88. The trade was a 32.57 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of the company’s stock in a transaction that occurred on Friday, December 20th. The stock was sold at an average price of $10.44, for a total value of $1,188,312.12. Following the transaction, the executive now owns 558,325 shares in the company, valued at $5,828,913. This trade represents a 16.93 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 1,930,441 shares of company stock worth $21,099,751. Insiders own 21.50% of the company’s stock.

Institutional Investors Weigh In On Red Cat

Hedge funds have recently added to or reduced their stakes in the stock. Sanctuary Advisors LLC bought a new stake in shares of Red Cat during the third quarter valued at approximately $25,000. Twin Tree Management LP purchased a new stake in Red Cat during the 4th quarter valued at $28,000. Bank of America Corp DE boosted its stake in Red Cat by 407.0% during the 4th quarter. Bank of America Corp DE now owns 3,397 shares of the company’s stock valued at $44,000 after purchasing an additional 2,727 shares during the last quarter. Mark Sheptoff Financial Planning LLC bought a new stake in shares of Red Cat in the 4th quarter worth $48,000. Finally, Sheets Smith Wealth Management purchased a new position in shares of Red Cat in the third quarter worth $51,000. 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.