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

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) were down 7.2% on Tuesday after an insider sold shares in the company. The company traded as low as $12.80 and last traded at $13.07. Approximately 4,423,657 shares changed hands during mid-day 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 dated Monday, December 30th. The shares were sold at an average price of $14.24, for a total transaction of $213,600.00. Following the transaction, the director now directly owns 585,190 shares in the company, valued at $8,333,105.60. The trade was a 2.50 % decrease in their ownership of the stock. The sale 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 Red Cat stock in a transaction that occurred on Thursday, December 26th. The shares were sold at an average price of $14.27, for a total value of $4,416,436.57. Following the completion of the sale, the insider now directly owns 304,406 shares in the company, valued at $4,343,873.62. This represents a 50.41 % decrease in their position. The disclosure for this sale can be found here. In other news, insider George Michael Matus sold 72,093 shares of the stock in a transaction that occurred 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 completion of 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 position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink.

Red Cat Stock Down 9.2 %

The stock has a fifty day moving average of $7.01 and a two-hundred day moving average of $4.00. The stock has a market cap of $1.03 billion, a price-to-earnings ratio of -27.80 and a beta of 1.33.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings results on Monday, December 16th. The company reported ($0.18) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.27). Red Cat had a negative net margin of 162.50% and a negative return on equity of 66.19%. During the same quarter in the previous year, the company posted ($0.11) earnings per share. On average, research analysts expect that Red Cat Holdings, Inc. will post -0.39 EPS for the current year.

Institutional Investors Weigh In On Red Cat

Institutional investors have recently modified their holdings of the company. Sanctuary Advisors LLC purchased a new stake in shares of Red Cat in the 3rd quarter worth about $25,000. Wolverine Trading LLC purchased a new stake in shares of Red Cat in the third quarter valued at about $233,000. State Street Corp grew its position in shares of 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 purchasing an additional 68,800 shares during the last quarter. Centiva Capital LP purchased a new position in shares of Red Cat during the 3rd quarter worth approximately $207,000. Finally, Corsair Capital Management L.P. acquired a new position in shares of Red Cat during the 3rd quarter worth approximately $308,000. 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.