Red Cat (NASDAQ:RCAT) Shares Gap Down – What’s Next?

Red Cat Holdings, Inc. (NASDAQ:RCAT) gapped down before the market opened on Wednesday . The stock had previously closed at $13.06, but opened at $12.26. Red Cat shares last traded at $12.33, with a volume of 2,178,863 shares traded.

Red Cat Stock Down 15.1 %

The firm has a market cap of $804.82 million, a P/E ratio of -21.83 and a beta of 1.32. The firm’s 50-day simple moving average is $8.57 and its 200 day simple moving average is $4.61.

Red Cat (NASDAQ:RCAT) last issued 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 net margin of 162.50% and a negative return on equity of 66.19%. During the same period in the previous year, the firm posted ($0.11) EPS. As a group, analysts forecast that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current year.

Insider Transactions at Red Cat

In related news, insider George Michael Matus sold 309,491 shares of the business’s stock in a transaction on Thursday, December 26th. The stock was sold at an average price of $14.27, for a total transaction of $4,416,436.57. Following the sale, the insider now directly owns 304,406 shares in the company, valued at approximately $4,343,873.62. The trade was a 50.41 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Joseph David Freedman sold 15,000 shares of the firm’s 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 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 disclosure for this sale can be found here. Insiders sold 1,930,441 shares of company stock worth $21,099,751 over the last quarter. Corporate insiders own 21.50% of the company’s stock.

Hedge Funds Weigh In On Red Cat

Hedge funds have recently bought and sold shares of the company. Sanctuary Advisors LLC purchased a new stake in Red Cat in the 3rd quarter worth approximately $25,000. Wolverine Trading LLC purchased a new stake in shares of Red Cat in the third quarter worth $233,000. State Street Corp boosted its stake in Red Cat by 44.9% during the third quarter. State Street Corp now owns 221,958 shares of the company’s stock valued at $564,000 after buying an additional 68,800 shares during the period. Centiva Capital LP purchased a new position in Red Cat during the third quarter worth about $207,000. Finally, Corsair Capital Management L.P. bought a new position in Red Cat in the 3rd quarter worth about $308,000. Hedge funds and other institutional investors own 37.97% of the company’s stock.

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.