Red Cat (NASDAQ:RCAT) Shares Gap Down - Here's What Happened

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) gapped down prior to trading on Friday . The stock had previously closed at $9.43, but opened at $9.18. Red Cat shares last traded at $9.10, with a volume of 2,191,402 shares trading hands.

Red Cat Stock Down 5.4 %

The business has a fifty day moving average price of $10.11 and a two-hundred day moving average price of $6.07. 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 firm has a market capitalization of $715.04 million, a price-to-earnings ratio of -16.52 and a beta of 1.24.

Red Cat (NASDAQ:RCAT - Get Free Report) last posted its earnings results 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 96.00% and a negative net margin of 232.62%. During the same period last year, the business earned ($0.11) EPS. On average, equities analysts expect that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Joseph David Freedman sold 15,000 shares of Red Cat stock in a transaction on Monday, December 30th. The stock was sold at an average price of $14.24, for a total value 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. The trade was a 2.50 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of Red Cat stock in a transaction on 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 sale, the director now directly owns 681,072 shares of the company's stock, valued at $5,646,086.88. The trade was a 32.57 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 1,930,441 shares of company stock worth $21,099,751. 21.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Red Cat

A number of institutional investors have recently modified their holdings of the company. Sanctuary Advisors LLC purchased a new position in Red Cat in the third quarter valued at $25,000. Twin Tree Management LP purchased a new position in Red Cat in the fourth quarter valued at $28,000. Bank of America Corp DE boosted its holdings in Red Cat by 407.0% in the fourth quarter. Bank of America Corp DE now owns 3,397 shares of the company's stock valued at $44,000 after purchasing an additional 2,727 shares during the period. Mark Sheptoff Financial Planning LLC purchased a new position in Red Cat in the fourth quarter valued at $48,000. Finally, Sheets Smith Wealth Management purchased a new position in Red Cat in the third quarter valued at $51,000. 37.97% of the stock is owned by institutional investors and hedge funds.

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.