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

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) gapped down prior to trading on Tuesday following insider selling activity. The stock had previously closed at $14.09, but opened at $13.80. Red Cat shares last traded at $13.64, with a volume of 2,970,165 shares traded.

Specifically, Director Joseph David Freedman sold 15,000 shares of the firm’s stock in a transaction dated Monday, December 30th. The stock was sold at an average price of $14.24, for a total transaction of $213,600.00. Following the completion of the sale, the director now directly owns 585,190 shares of the company’s stock, valued at approximately $8,333,105.60. This trade represents a 2.50 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider George Michael Matus sold 309,491 shares of the stock in a transaction dated Thursday, December 26th. The stock was sold at an average price of $14.27, for a total transaction of $4,416,436.57. Following the transaction, the insider now directly 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 position. 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 that occurred on Tuesday, December 24th. The shares were sold at an average price of $12.10, for a total value of $872,325.30. Following the transaction, the insider now directly owns 613,897 shares in the company, valued at approximately $7,428,153.70. This represents a 10.51 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink.

Red Cat Trading Down 8.8 %

The company’s fifty day moving average is $7.01 and its two-hundred day moving average is $4.00. 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 posted its 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 66.19% and a negative net margin of 162.50%. During the same period last year, the business posted ($0.11) EPS. Analysts predict that Red Cat Holdings, Inc. will post -0.39 EPS for the current year.

Institutional Investors Weigh In On Red Cat

A number of hedge funds have recently bought and sold shares of RCAT. Renaissance Technologies LLC purchased a new stake in shares of Red Cat in the 2nd quarter valued at approximately $267,000. Corsair Capital Management L.P. purchased a new position in Red Cat in the third quarter valued at $308,000. Wolverine Trading LLC acquired a new stake in Red Cat in the third quarter valued at $233,000. Centiva Capital LP acquired a new stake in Red Cat in the third quarter valued at $207,000. Finally, State Street Corp lifted its holdings in Red Cat by 44.9% during the 3rd quarter. State Street Corp now owns 221,958 shares of the company’s stock worth $564,000 after buying an additional 68,800 shares during the last quarter. Institutional investors and hedge funds own 37.97% of the company’s stock.

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.