Red Cat (NASDAQ:RCAT) Trading Down 0.9% – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price dropped 0.9% during mid-day trading on Tuesday . The stock traded as low as $8.11 and last traded at $8.48. Approximately 4,712,186 shares changed hands during mid-day trading, a decline of 55% from the average daily volume of 10,513,427 shares. The stock had previously closed at $8.56.

Red Cat Price Performance

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 company has a market capitalization of $666.13 million, a P/E ratio of -15.39 and a beta of 1.32. The firm’s 50-day moving average is $9.62 and its 200-day moving average is $5.15.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings data on Monday, December 16th. The company reported ($0.18) EPS 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 period in the previous year, the company earned ($0.11) earnings per share. Analysts predict that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Insider Activity at Red Cat

In related news, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the stock in a transaction dated Wednesday, December 18th. The shares were sold at an average price of $8.29, for a total value of $2,726,813.12. Following the completion of the transaction, the director now owns 681,072 shares of the company’s stock, valued at approximately $5,646,086.88. This trade represents a 32.57 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider George Michael Matus sold 309,491 shares of Red Cat stock in a transaction dated Thursday, December 26th. The stock was sold at an average price of $14.27, for a total value of $4,416,436.57. Following the completion of the transaction, the insider now owns 304,406 shares of the company’s stock, valued at approximately $4,343,873.62. This represents a 50.41 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 1,930,441 shares of company stock valued at $21,099,751. Insiders own 21.50% of the company’s stock.

Institutional Trading of Red Cat

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Sanctuary Advisors LLC bought a new position in Red Cat during the 3rd quarter valued at about $25,000. Sheets Smith Wealth Management bought a new stake in shares of Red Cat during the third quarter worth $51,000. PVG Asset Management Corp purchased a new stake in shares of Red Cat during the second quarter valued at $63,000. XTX Topco Ltd grew its holdings in shares of Red Cat by 390.9% in the second quarter. XTX Topco Ltd now owns 58,895 shares of the company’s stock worth $68,000 after purchasing an additional 46,897 shares during the last quarter. Finally, United Capital Management of KS Inc. purchased a new position in Red Cat in the 3rd quarter worth about $108,000. 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.