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

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s stock price gapped down before the market opened on Tuesday after an insider sold shares in the company. 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 changing hands.

Specifically, Director Joseph David Freedman sold 15,000 shares of the company's stock in a transaction that occurred on Monday, December 30th. The stock was sold at an average price of $14.24, for a total transaction of $213,600.00. Following the transaction, the director now owns 585,190 shares in the company, valued at approximately $8,333,105.60. This represents a 2.50 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider George Michael Matus sold 309,491 shares of the firm's 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 transaction, the insider now owns 304,406 shares of the company's stock, valued at approximately $4,343,873.62. The trade was a 50.41 % decrease in their position. The disclosure for this sale can be found here. In related news, insider George Michael Matus sold 72,093 shares of the company's stock in a transaction on Tuesday, December 24th. The stock was sold at an average price of $12.10, for a total value of $872,325.30. Following the sale, the insider now directly owns 613,897 shares of the company's stock, valued at $7,428,153.70. This represents a 10.51 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link.

Red Cat Price Performance

The firm has a 50-day simple moving average of $7.01 and a 200 day simple moving average of $4.00. The firm has a market cap of $1.03 billion, a PE ratio of -27.93 and a beta of 1.33.

Red Cat (NASDAQ:RCAT - Get Free Report) last posted 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 return on equity of 66.19% and a negative net margin of 162.50%. During the same quarter in the prior year, the business posted ($0.11) EPS. Sell-side analysts forecast that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current fiscal year.

Institutional Trading of Red Cat

Several hedge funds and other institutional investors have recently made changes to their positions in RCAT. Sanctuary Advisors LLC purchased a new position in Red Cat during the third quarter valued at $25,000. Sheets Smith Wealth Management purchased a new position in shares of Red Cat in the 3rd quarter worth about $51,000. PVG Asset Management Corp bought a new position in Red Cat in the 2nd quarter worth about $63,000. XTX Topco Ltd grew its position in Red Cat by 390.9% during the 2nd quarter. XTX Topco Ltd now owns 58,895 shares of the company's stock valued at $68,000 after purchasing an additional 46,897 shares during the last quarter. Finally, United Capital Management of KS Inc. bought a new stake in Red Cat during the 3rd quarter valued at 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.