Red Cat (NASDAQ:RCAT) Stock Price Down 9.4% – Here’s What Happened

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price dropped 9.4% on Thursday . The stock traded as low as $11.35 and last traded at $11.83. Approximately 9,811,347 shares changed hands during mid-day 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 $804.01 million, a P/E ratio of -21.80 and a beta of 1.32. The firm has a 50-day moving average of $8.71 and a 200-day moving average of $4.67.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings data 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 net margin of 162.50% and a negative return on equity of 66.19%. During the same period in the prior year, the firm earned ($0.11) earnings per share. On average, research analysts forecast that Red Cat Holdings, Inc. will post -0.39 EPS for the current fiscal year.

Insider Activity at Red Cat

In other news, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the stock in a transaction on Wednesday, December 18th. The stock was sold at an average price of $8.29, for a total transaction of $2,726,813.12. Following the transaction, the director now directly owns 681,072 shares of the company’s stock, valued at $5,646,086.88. This represents a 32.57 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider George Michael Matus sold 112,686 shares of the stock in a transaction on Wednesday, December 18th. The shares were 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 in the company, valued at $8,952,547.60. The trade was a 10.38 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 1,930,441 shares of company stock valued at $21,099,751. 21.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Red Cat

Several hedge funds and other institutional investors have recently modified their holdings of RCAT. Centiva Capital LP bought a new position in Red Cat in the 3rd quarter worth $207,000. Wolverine Trading LLC bought a new position in Red Cat in the 3rd quarter worth $233,000. Corsair Capital Management L.P. bought a new position in Red Cat in the 3rd quarter worth $308,000. Pekin Hardy Strauss Inc. bought a new position in Red Cat in the 3rd quarter worth $138,000. Finally, State Street Corp raised its holdings in Red Cat by 44.9% in the 3rd quarter. State Street Corp now owns 221,958 shares of the company’s stock worth $564,000 after purchasing an additional 68,800 shares during the period. 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.