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

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 Performance

The company has a quick ratio of 0.60, a current ratio of 1.43 and a debt-to-equity ratio of 0.30. The firm has a 50-day moving average of $10.19 and a 200 day moving average of $6.18. The stock has a market capitalization of $700.60 million, a P/E ratio of -16.18 and a beta of 1.24.

Red Cat (NASDAQ:RCAT - Get Free Report) last released its quarterly earnings data on Monday, December 16th. The company reported ($0.18) EPS for the quarter, missing analysts' consensus estimates 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 quarter in the prior year, the company earned ($0.11) EPS. Research analysts anticipate that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Insider Activity

In related news, CEO Jeffrey M. Thompson sold 392,551 shares of the stock in a transaction dated 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. This trade represents a 2.90 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Joseph David Freedman sold 15,000 shares of the business's stock in a transaction dated Monday, December 30th. The shares were sold at an average price of $14.24, for a total transaction of $213,600.00. Following the completion of the transaction, the director now owns 585,190 shares in the company, valued at approximately $8,333,105.60. This trade represents a 2.50 % 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. Company insiders own 21.50% of the company's stock.

Hedge Funds Weigh In On Red Cat

Several institutional investors have recently bought and sold shares of the business. Squarepoint Ops LLC grew its holdings in shares of Red Cat by 23.0% during the fourth quarter. Squarepoint Ops LLC now owns 15,496 shares of the company's stock worth $199,000 after purchasing an additional 2,902 shares during the last quarter. Two Sigma Advisers LP bought a new stake in Red Cat during the 4th quarter worth about $362,000. Tidal Investments LLC acquired a new stake in Red Cat in the 4th quarter valued at about $270,000. Nomura Holdings Inc. bought a new position in shares of Red Cat in the fourth quarter worth about $180,000. Finally, OMERS ADMINISTRATION Corp acquired a new position in shares of Red Cat during the fourth quarter worth approximately $1,714,000. Institutional investors 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.