Red Cat (NASDAQ:RCAT) Shares Down 15.2% - What's Next?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) dropped 15.2% during trading on Monday . The stock traded as low as $8.29 and last traded at $8.56. Approximately 13,174,926 shares were traded during mid-day trading, a decline of 4% from the average daily volume of 13,691,270 shares. The stock had previously closed at $10.10.

Red Cat Price Performance

The stock has a fifty day simple moving average of $9.33 and a two-hundred day simple moving average of $5.02. The company has a current ratio of 1.43, a quick ratio of 0.60 and a debt-to-equity ratio of 0.30. The company has a market cap of $686.17 million, a PE ratio of -15.85 and a beta of 1.32.

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 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 period in the previous year, the firm posted ($0.11) EPS. On average, equities analysts predict that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Insider Activity

In other Red Cat news, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the business's stock in a transaction on 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 approximately $5,646,086.88. The trade was a 32.57 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Jeffrey M. Thompson sold 392,551 shares of the company's stock in a transaction that occurred on Monday, December 23rd. The stock was 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 directly owns 13,121,898 shares of the company's stock, valued at approximately $148,802,323.32. This represents a 2.90 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,930,441 shares of company stock worth $21,099,751 over the last 90 days. Company insiders own 21.50% of the company's stock.

Hedge Funds Weigh In On Red Cat

Hedge funds have recently modified their holdings of the stock. Sanctuary Advisors LLC acquired a new position in shares of Red Cat in the 3rd quarter valued at about $25,000. Myecfo LLC acquired a new stake in shares of Red Cat in the fourth quarter worth $193,000. Sheets Smith Wealth Management bought a new position in shares of Red Cat in the third quarter worth about $51,000. Kieckhefer Group LLC bought a new position in Red Cat in the 4th quarter worth approximately $296,000. Finally, United Capital Management of KS Inc. acquired a new position in Red Cat during the 3rd quarter valued at $108,000. 37.97% of the stock is currently owned by institutional investors and hedge funds.

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.