Red Cat (NASDAQ:RCAT) Trading Down 8.5% - Here's What Happened

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s stock price traded down 8.5% on Thursday . The company traded as low as $9.59 and last traded at $9.98. 5,904,267 shares changed hands during mid-day trading, a decline of 41% from the average session volume of 9,928,730 shares. The stock had previously closed at $10.91.

Red Cat Stock Performance

The firm has a market cap of $686.18 million, a PE ratio of -15.85 and a beta of 1.32. The company has a 50 day simple moving average of $9.33 and a 200-day simple moving average of $4.99. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.43 and a quick ratio of 0.60.

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 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 in the previous year, the company posted ($0.11) earnings per share. As a group, equities research analysts anticipate that Red Cat Holdings, Inc. will post -0.5 EPS for the current year.

Insider Buying and Selling at Red Cat

In related news, CEO Jeffrey M. Thompson sold 392,551 shares of Red Cat stock in a transaction on Monday, December 23rd. The shares were sold at an average price of $11.34, for a total value of $4,451,528.34. Following the sale, the chief executive officer now owns 13,121,898 shares in the company, valued at $148,802,323.32. The trade was a 2.90 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of the company's stock in a transaction on Friday, December 20th. The stock was sold at an average price of $10.44, for a total transaction of $1,188,312.12. Following the completion of the transaction, the executive now owns 558,325 shares of the company's stock, valued at $5,828,913. This trade represents a 16.93 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,930,441 shares of company stock valued at $21,099,751 in the last quarter. Company insiders own 21.50% of the company's stock.

Institutional Investors Weigh In On Red Cat

A number of large investors have recently modified their holdings of RCAT. Centiva Capital LP bought a new stake in shares of Red Cat during the third quarter valued at approximately $207,000. Wolverine Trading LLC bought a new stake in shares of Red Cat during the 3rd quarter valued at $233,000. Corsair Capital Management L.P. bought a new stake in shares of Red Cat during the 3rd quarter valued at $308,000. Pekin Hardy Strauss Inc. purchased a new stake in shares of Red Cat in the 3rd quarter worth about $138,000. Finally, State Street Corp increased its stake in shares of Red Cat by 44.9% in the 3rd quarter. State Street Corp now owns 221,958 shares of the company's stock worth $564,000 after acquiring an additional 68,800 shares in the last quarter. 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.