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

Red Cat Holdings, Inc. (NASDAQ:RCAT) gapped down prior to trading on Tuesday after an insider sold shares in the company. The stock had previously closed at $14.09, but opened at $13.80. Red Cat shares last traded at $13.64, with a volume of 2,970,165 shares.

Specifically, Director Joseph David Freedman sold 15,000 shares of the firm’s stock in a transaction that occurred on Monday, December 30th. The shares were sold at an average price of $14.24, for a total value of $213,600.00. Following the completion of the transaction, the director now owns 585,190 shares of the company’s stock, valued at $8,333,105.60. This trade represents a 2.50 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, insider George Michael Matus sold 309,491 shares of the company’s stock in a transaction that occurred 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 directly owns 304,406 shares of the company’s stock, valued at $4,343,873.62. This trade represents a 50.41 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In other news, insider George Michael Matus sold 72,093 shares of the firm’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 directly owns 613,897 shares in the company, valued at approximately $7,428,153.70. This trade represents a 10.51 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link.

Red Cat Trading Down 8.8 %

The company has a market cap of $1.03 billion, a price-to-earnings ratio of -27.93 and a beta of 1.33. The company’s 50 day moving average price is $7.21 and its 200 day moving average price is $4.08.

Red Cat (NASDAQ:RCAT) last announced its quarterly 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 net margin of 162.50% and a negative return on equity of 66.19%. During the same quarter in the previous year, the company posted ($0.11) earnings per share. Sell-side analysts predict that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current year.

Institutional Investors Weigh In On Red Cat

Several hedge funds have recently modified their holdings of the company. Sanctuary Advisors LLC acquired a new stake in Red Cat during the 3rd quarter worth approximately $25,000. Sheets Smith Wealth Management bought a new stake in shares of Red Cat in the third quarter worth $51,000. United Capital Management of KS Inc. acquired a new stake in Red Cat in the third quarter valued at $108,000. Pekin Hardy Strauss Inc. bought a new position in Red Cat during the 3rd quarter valued at $138,000. Finally, PVG Asset Management Corp acquired a new position in Red Cat during the 2nd quarter worth $63,000. 37.97% of the stock is owned by institutional investors and hedge funds.

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.