Red Cat (NASDAQ:RCAT) Shares Down 7.1% After Insider Selling

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) fell 7.1% during mid-day trading on Friday following insider selling activity. The company traded as low as $12.00 and last traded at $12.46. 9,302,877 shares traded hands during trading, an increase of 317% from the average session volume of 2,232,723 shares. The stock had previously closed at $13.41.

Specifically, insider George Michael Matus sold 309,491 shares of the stock in a transaction that occurred on Thursday, December 26th. The shares were 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 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 72,093 shares of the business’s stock in a transaction dated Tuesday, December 24th. The stock was sold at an average price of $12.10, for a total value of $872,325.30. Following the transaction, the insider now directly 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 disclosure for this sale can be found here. In related news, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of the stock in a transaction on Friday, December 20th. The stock was sold at an average price of $10.44, for a total value of $1,188,312.12. Following the transaction, the executive now owns 558,325 shares of the company’s stock, valued at $5,828,913. This represents a 16.93 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink.

Red Cat Trading Down 8.6 %

The firm’s fifty day moving average price is $6.79 and its 200-day moving average price is $3.88. The firm has a market cap of $982.77 million, a price-to-earnings ratio of -26.65 and a beta of 1.33.

Red Cat (NASDAQ:RCAT) last announced 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 quarter last year, the company posted ($0.11) EPS. On average, sell-side analysts expect that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current year.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Centiva Capital LP acquired a new stake in shares of Red Cat in the third quarter valued at about $207,000. Wolverine Trading LLC acquired a new stake in shares of Red Cat in the 3rd quarter worth approximately $233,000. Corsair Capital Management L.P. purchased a new position in shares of Red Cat in the third quarter valued at $308,000. Pekin Hardy Strauss Inc. purchased a new position in Red Cat during the 3rd quarter valued at about $138,000. Finally, Renaissance Technologies LLC acquired a new position in shares of Red Cat during the 2nd quarter worth approximately $267,000. 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.