Red Cat (NASDAQ:RCAT) Shares Down 7.2% on Insider Selling

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price fell 7.2% on Tuesday after an insider sold shares in the company. The stock traded as low as $12.80 and last traded at $13.07. 4,423,657 shares were traded during trading, an increase of 90% from the average session volume of 2,329,195 shares. The stock had previously closed at $14.09.

Specifically, Director Joseph David Freedman sold 15,000 shares of Red Cat stock in a transaction dated Monday, December 30th. The stock was sold at an average price of $14.24, for a total transaction of $213,600.00. Following the completion of the sale, the director now owns 585,190 shares in the company, valued at approximately $8,333,105.60. This trade represents a 2.50 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider George Michael Matus sold 309,491 shares of the firm’s stock in a transaction dated 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 $4,343,873.62. This represents a 50.41 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In related news, insider George Michael Matus sold 72,093 shares of the company’s stock in a transaction that occurred on Tuesday, December 24th. The shares were sold at an average price of $12.10, for a total transaction of $872,325.30. Following the transaction, the insider now owns 613,897 shares of the company’s stock, valued at approximately $7,428,153.70. This represents a 10.51 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website.

Red Cat Stock Performance

The company has a market capitalization of $1.03 billion, a price-to-earnings ratio of -27.80 and a beta of 1.33. The company has a fifty day simple moving average of $7.01 and a two-hundred day simple moving average of $4.00.

Red Cat (NASDAQ:RCAT) last released 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 company earned ($0.11) EPS. As a group, analysts expect that Red Cat Holdings, Inc. will post -0.39 EPS for the current year.

Institutional Investors Weigh In On Red Cat

Institutional investors have recently bought and sold shares of the stock. Sanctuary Advisors LLC acquired a new position in shares of Red Cat in the 3rd quarter valued at $25,000. Sheets Smith Wealth Management acquired a new position in Red Cat in the third quarter valued at $51,000. PVG Asset Management Corp acquired a new stake in Red Cat during the second quarter worth about $63,000. XTX Topco Ltd raised its holdings in shares of Red Cat by 390.9% in the 2nd quarter. XTX Topco Ltd now owns 58,895 shares of the company’s stock worth $68,000 after purchasing an additional 46,897 shares during the period. Finally, United Capital Management of KS Inc. acquired a new position in shares of Red Cat in the 3rd quarter valued at about $108,000. 37.97% of the stock is currently owned by hedge funds and other 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.