Red Cat (NASDAQ:RCAT) Trading Down 8.2% - Here's What Happened

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s share price dropped 8.2% on Tuesday . The company traded as low as $10.02 and last traded at $9.87. Approximately 4,294,217 shares were traded during mid-day trading, a decline of 56% from the average daily volume of 9,692,133 shares. The stock had previously closed at $10.75.

Red Cat Stock Performance

The business's fifty day moving average price is $10.11 and its two-hundred day moving average price is $6.01. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.60 and a current ratio of 1.43. The stock has a market capitalization of $715.03 million, a P/E 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) earnings per share 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) earnings per share. As a group, sell-side analysts forecast that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Insider Activity at Red Cat

In related news, insider George Michael Matus sold 112,686 shares of the company's stock in a transaction dated Wednesday, December 18th. The shares were sold at an average price of $9.20, for a total transaction of $1,036,711.20. Following the transaction, the insider now directly owns 973,103 shares in the company, valued at approximately $8,952,547.60. This represents a 10.38 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the company's stock in a transaction dated Wednesday, December 18th. The stock was sold at an average price of $8.29, for a total transaction of $2,726,813.12. Following the completion of the transaction, the director now owns 681,072 shares in the company, valued at $5,646,086.88. This represents a 32.57 % 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.

Hedge Funds Weigh In On Red Cat

A number of hedge funds have recently added to or reduced their stakes in RCAT. Waddell & Associates LLC bought a new position in Red Cat in the 4th quarter worth about $159,643,000. Rockefeller Capital Management L.P. bought a new position in Red Cat in the 4th quarter worth about $6,628,000. Vanguard Group Inc. grew its stake in Red Cat by 9.0% in the 4th quarter. Vanguard Group Inc. now owns 2,505,613 shares of the company's stock worth $32,197,000 after acquiring an additional 207,727 shares in the last quarter. Corsair Capital Management L.P. purchased a new stake in shares of Red Cat in the 3rd quarter worth approximately $308,000. Finally, Integrated Wealth Concepts LLC purchased a new stake in shares of Red Cat in the 4th quarter worth approximately $1,511,000. 37.97% of the stock is currently owned by institutional investors.

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.