Red Cat (NASDAQ:RCAT) Stock Price Down 8.5% – What’s Next?

Red Cat Holdings, Inc. (NASDAQ:RCAT) was down 8.5% on Thursday . The company traded as low as $9.59 and last traded at $9.98. Approximately 5,904,267 shares were traded during mid-day trading, a decline of 41% from the average daily volume of 9,928,730 shares. The stock had previously closed at $10.91.

Red Cat Price Performance

The company has a quick ratio of 0.60, a current ratio of 1.43 and a debt-to-equity ratio of 0.30. The company’s 50-day moving average is $9.33 and its 200-day moving average is $4.96. The stock has a market cap of $686.18 million, a price-to-earnings ratio of -15.85 and a beta of 1.32.

Red Cat (NASDAQ:RCAT) last issued its earnings results on Monday, December 16th. The company reported ($0.18) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 earned ($0.11) earnings per share. Equities research analysts expect that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the firm’s stock in a transaction that occurred on Wednesday, December 18th. The shares were sold at an average price of $8.29, for a total value of $2,726,813.12. Following the completion of the sale, the director now owns 681,072 shares of the company’s stock, valued at $5,646,086.88. This trade represents a 32.57 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider George Michael Matus sold 309,491 shares of the stock in a transaction on 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 owns 304,406 shares in the company, valued at $4,343,873.62. The trade was a 50.41 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over 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.

Hedge Funds Weigh In On Red Cat

Several large investors have recently made changes to their positions in the company. Renaissance Technologies LLC acquired a new stake in Red Cat in the second quarter worth about $267,000. State Street Corp raised its stake in shares of Red Cat by 44.9% during the third 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 last quarter. Corsair Capital Management L.P. bought a new stake in shares of Red Cat during the third quarter worth approximately $308,000. Wolverine Trading LLC acquired a new position in Red Cat in the third quarter valued at approximately $233,000. Finally, Centiva Capital LP acquired a new stake in Red Cat during the 3rd quarter worth $207,000. Institutional investors and hedge funds 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.