Red Cat (NASDAQ:RCAT) Trading Down 5.1% – What’s Next?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price traded down 5.1% on Thursday . The stock traded as low as $8.79 and last traded at $8.87. 3,261,939 shares were traded during mid-day trading, a decline of 68% from the average session volume of 10,314,919 shares. The stock had previously closed at $9.35.

Red Cat Price Performance

The firm has a market cap of $704.61 million, a price-to-earnings ratio of -16.28 and a beta of 1.32. The stock’s fifty day moving average price is $10.02 and its 200-day moving average price is $5.47. The company has a current ratio of 1.43, a quick ratio of 0.60 and a debt-to-equity ratio of 0.30.

Red Cat (NASDAQ:RCAT) last posted its 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 last year, the firm posted ($0.11) EPS. As a group, equities research analysts forecast that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Insider Buying and Selling at Red Cat

In related 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 transaction of $213,600.00. Following the transaction, the director now owns 585,190 shares of the company’s stock, valued at approximately $8,333,105.60. This represents a 2.50 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider George Michael Matus sold 309,491 shares of Red Cat stock in a transaction dated Thursday, December 26th. The shares were sold at an average price of $14.27, for a total value of $4,416,436.57. Following the completion of the transaction, the insider now directly owns 304,406 shares of the company’s stock, valued at approximately $4,343,873.62. This represents a 50.41 % 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 valued at $21,099,751 over the last 90 days. 21.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in RCAT. Sanctuary Advisors LLC acquired a new stake in Red Cat during the 3rd quarter worth approximately $25,000. Regency Capital Management Inc. DE purchased a new stake in shares of Red Cat during the fourth quarter worth $130,000. Atria Wealth Solutions Inc. purchased a new stake in shares of Red Cat during the fourth quarter worth $134,000. U.S. Capital Wealth Advisors LLC acquired a new stake in shares of Red Cat in the fourth quarter valued at $139,000. Finally, Gladstone Institutional Advisory LLC grew its position in shares of Red Cat by 34.0% during the fourth quarter. Gladstone Institutional Advisory LLC now owns 13,400 shares of the company’s stock worth $172,000 after buying an additional 3,400 shares in the last quarter. Hedge funds and other 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.