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

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price traded down 5.1% during mid-day trading 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 Stock Performance

The company has a debt-to-equity ratio of 0.30, a current ratio of 1.43 and a quick ratio of 0.60. The stock has a market capitalization of $698.19 million, a price-to-earnings ratio of -16.13 and a beta of 1.32. The stock has a 50-day moving average of $9.99 and a 200 day moving average of $5.40.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings results on Monday, December 16th. The company reported ($0.18) 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 quarter last year, the firm posted ($0.11) EPS. On average, analysts expect that Red Cat Holdings, Inc. will post -0.5 EPS for the current year.

Insider Buying and Selling at Red Cat

In other news, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the business’s stock in a transaction dated 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 completion of the transaction, the director now directly owns 681,072 shares in the company, valued at approximately $5,646,086.88. The trade was a 32.57 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Joseph David Freedman sold 50,000 shares of the stock in a transaction that occurred on Friday, December 20th. The shares were sold at an average price of $10.00, for a total transaction of $500,000.00. Following the completion of the sale, the director now owns 635,190 shares in the company, valued at $6,351,900. This represents a 7.30 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 1,930,441 shares of company stock worth $21,099,751. Insiders own 21.50% of the company’s stock.

Institutional Trading of Red Cat

A number of large investors have recently made changes to their positions in RCAT. Renaissance Technologies LLC acquired a new position in Red Cat in the second quarter valued at about $267,000. Corsair Capital Management L.P. acquired a new position in shares of Red Cat in the 3rd quarter valued at approximately $308,000. Wolverine Trading LLC bought a new stake in Red Cat during the 3rd quarter worth approximately $233,000. Centiva Capital LP bought a new stake in Red Cat during the 3rd quarter worth approximately $207,000. Finally, State Street Corp raised its holdings in Red Cat by 44.9% during the 3rd quarter. State Street Corp now owns 221,958 shares of the company’s stock worth $564,000 after buying an additional 68,800 shares during the period. 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.