Red Cat (NASDAQ:RCAT) Trading Down 8.6% - Here's Why

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) dropped 8.6% on Monday . The stock traded as low as $7.77 and last traded at $7.89. Approximately 4,628,690 shares changed hands during mid-day trading, a decline of 57% from the average daily volume of 10,681,309 shares. The stock had previously closed at $8.63.

Red Cat Trading Up 0.9 %

The business's 50 day simple moving average is $10.02 and its 200-day simple moving average is $5.50. 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 stock has a market capitalization of $704.61 million, a P/E ratio of -16.28 and a beta of 1.32.

Red Cat (NASDAQ:RCAT - Get Free Report) last posted its quarterly earnings results on Monday, December 16th. The company reported ($0.18) earnings per share (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 prior year, the business earned ($0.11) earnings per share. As a group, analysts forecast that Red Cat Holdings, Inc. will post -0.5 EPS for the current year.

Insider Activity

In other Red Cat news, Director Joseph David Freedman sold 15,000 shares of the stock in a transaction dated 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 in the company, valued at $8,333,105.60. This represents a 2.50 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of Red Cat stock in a transaction dated Friday, December 20th. The shares were sold at an average price of $10.44, for a total value of $1,188,312.12. Following the transaction, the executive now owns 558,325 shares in the company, valued at $5,828,913. This trade represents a 16.93 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 1,930,441 shares of company stock valued at $21,099,751 in the last ninety days. 21.50% of the stock is owned by insiders.

Institutional Trading of Red Cat

Large investors have recently bought and sold shares of the business. Sanctuary Advisors LLC acquired a new position in shares of Red Cat in the third quarter valued at approximately $25,000. Sheets Smith Wealth Management acquired a new position in Red Cat in the 3rd quarter worth $51,000. United Capital Management of KS Inc. bought a new position in Red Cat during the 3rd quarter worth about $108,000. Regency Capital Management Inc. DE acquired a new stake in shares of Red Cat in the 4th quarter valued at about $130,000. Finally, Atria Wealth Solutions Inc. bought a new stake in shares of Red Cat in the fourth quarter valued at about $134,000. 37.97% of the stock is owned by institutional investors.

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.