Red Cat (NASDAQ:RCAT) Shares Down 8.8% – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price dropped 8.8% during mid-day trading on Wednesday . The company traded as low as $12.10 and last traded at $12.85. Approximately 9,768,720 shares were traded during mid-day trading, an increase of 315% from the average daily volume of 2,351,939 shares. The stock had previously closed at $14.09.

Red Cat Stock Performance

The company’s 50-day moving average is $7.59 and its 200-day moving average is $4.20. The firm has a market cap of $956.32 million, a price-to-earnings ratio of -25.93 and a beta of 1.33.

Red Cat (NASDAQ:RCAT) last announced its 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 return on equity of 66.19% and a negative net margin of 162.50%. During the same quarter last year, the business earned ($0.11) EPS. On average, analysts predict that Red Cat Holdings, Inc. will post -0.39 EPS for the current year.

Insider Buying and Selling at Red Cat

In other news, CEO Jeffrey M. Thompson sold 392,551 shares of Red Cat stock in a transaction that occurred on Monday, December 23rd. The shares were sold at an average price of $11.34, for a total transaction of $4,451,528.34. Following the completion of the sale, the chief executive officer now owns 13,121,898 shares in the company, valued at $148,802,323.32. The trade was a 2.90 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider George Michael Matus sold 309,491 shares of the stock in a transaction that occurred on Thursday, December 26th. The shares were sold at an average price of $14.27, for a total transaction of $4,416,436.57. Following the completion of the transaction, the insider now owns 304,406 shares in the company, valued at $4,343,873.62. This represents a 50.41 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety 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

Several large investors have recently bought and sold shares of the company. Renaissance Technologies LLC acquired a new position in shares of Red Cat in the second quarter valued at approximately $267,000. XTX Topco Ltd raised its holdings in shares of Red Cat by 390.9% during the second quarter. XTX Topco Ltd now owns 58,895 shares of the company’s stock worth $68,000 after acquiring an additional 46,897 shares during the period. PVG Asset Management Corp bought a new stake in Red Cat in the 2nd quarter valued at $63,000. Sheets Smith Wealth Management acquired a new position in Red Cat in the 3rd quarter worth $51,000. Finally, United Capital Management of KS Inc. bought a new position in Red Cat during the 3rd quarter worth about $108,000. 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.