Red Cat (NASDAQ:RCAT) Stock Price Down 7.3% – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT) fell 7.3% during trading on Friday . The company traded as low as $10.60 and last traded at $10.97. 3,781,421 shares changed hands during mid-day trading, a decline of 64% from the average session volume of 10,397,875 shares. The stock had previously closed at $11.83.

Red Cat Price Performance

The company’s 50 day simple moving average is $8.71 and its two-hundred day simple moving average is $4.69. The company has a market cap of $804.01 million, a PE ratio of -21.80 and a beta of 1.32.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings results 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 66.19% and a negative net margin of 162.50%. During the same period last year, the firm earned ($0.11) EPS. Sell-side analysts expect that Red Cat Holdings, Inc. will post -0.39 EPS for the current fiscal year.

Insider Transactions at Red Cat

In other Red Cat news, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of the stock in a transaction dated Friday, December 20th. The stock was sold at an average price of $10.44, for a total value of $1,188,312.12. Following the sale, 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider George Michael Matus sold 112,686 shares of the business’s stock in a transaction dated Wednesday, December 18th. The stock was sold at an average price of $9.20, for a total value of $1,036,711.20. Following the transaction, the insider now directly owns 973,103 shares of the company’s stock, valued at approximately $8,952,547.60. This represents a 10.38 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 1,930,441 shares of company stock valued at $21,099,751. 21.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Red Cat

Several institutional investors have recently modified their holdings of RCAT. Renaissance Technologies LLC purchased a new position in Red Cat in the second quarter valued at $267,000. Corsair Capital Management L.P. purchased a new position in shares of Red Cat in the 3rd quarter valued at about $308,000. Wolverine Trading LLC acquired a new stake in shares of Red Cat during the 3rd quarter worth about $233,000. Centiva Capital LP purchased a new stake in Red Cat during the third quarter worth approximately $207,000. Finally, State Street Corp boosted its holdings in Red Cat by 44.9% in the third quarter. State Street Corp now owns 221,958 shares of the company’s stock valued at $564,000 after purchasing an additional 68,800 shares in the last quarter. 37.97% of the stock is owned by hedge funds and other 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.