Red Cat (NASDAQ:RCAT) Trading Down 9.4% – What’s Next?

Red Cat Holdings, Inc. (NASDAQ:RCAT) dropped 9.4% during mid-day trading on Thursday . The company traded as low as $11.35 and last traded at $11.83. Approximately 9,811,347 shares traded hands during trading, a decline of 17% from the average daily volume of 11,806,563 shares. The stock had previously closed at $13.06.

Red Cat Stock Performance

The firm has a market capitalization of $948.30 million, a price-to-earnings ratio of -25.72 and a beta of 1.32. The company has a 50-day moving average price of $8.40 and a 200-day moving average price of $4.55.

Red Cat (NASDAQ:RCAT) last posted its earnings results on Monday, December 16th. The company reported ($0.18) earnings per share for the quarter, missing the consensus estimate 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 in the previous year, the firm posted ($0.11) EPS. On average, research analysts expect that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current fiscal year.

Insider Activity

In other news, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of the stock in a transaction that occurred on 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 completion of the sale, the executive now directly owns 558,325 shares of the company’s stock, valued at approximately $5,828,913. This represents a 16.93 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of Red Cat stock in a transaction on Wednesday, December 18th. The shares were 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 directly owns 681,072 shares in the company, valued at $5,646,086.88. The trade was a 32.57 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 1,930,441 shares of company stock worth $21,099,751. Corporate insiders own 21.50% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of RCAT. Centiva Capital LP acquired a new stake in shares of Red Cat during the third quarter worth about $207,000. Wolverine Trading LLC acquired a new stake in Red Cat during the 3rd quarter worth approximately $233,000. Corsair Capital Management L.P. acquired a new stake in Red Cat during the 3rd quarter worth approximately $308,000. Pekin Hardy Strauss Inc. purchased a new position in shares of Red Cat in the 3rd quarter valued at approximately $138,000. Finally, State Street Corp increased its holdings in shares of 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 during the period. 37.97% of the stock is owned by hedge funds and other institutional investors.

Red Cat Company Profile

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.