Red Cat (NASDAQ:RCAT) Shares Gap Down – Here’s Why

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) gapped down before the market opened on Monday . The stock had previously closed at $8.79, but opened at $8.20. Red Cat shares last traded at $8.14, with a volume of 2,267,429 shares traded.

Red Cat Stock Up 14.1 %

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 business has a fifty day simple moving average of $10.04 and a 200-day simple moving average of $5.63.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings data on Monday, December 16th. The company reported ($0.18) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.09 by ($0.27). Red Cat had a negative net margin of 232.62% and a negative return on equity of 96.00%. During the same period last year, the company posted ($0.11) earnings per share. As a group, research analysts forecast that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Insider Activity

In other Red Cat news, 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 transaction of $213,600.00. Following the completion of the transaction, 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 Securities & Exchange Commission, which can be accessed through this link. Also, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of the company’s stock in a transaction on Friday, December 20th. The shares were sold at an average price of $10.44, for a total transaction of $1,188,312.12. Following the completion of the sale, the executive now directly owns 558,325 shares in the company, valued at approximately $5,828,913. This represents a 16.93 % 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 valued at $21,099,751. Insiders own 21.50% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. Gladstone Institutional Advisory LLC lifted its stake in Red Cat by 34.0% in the fourth quarter. Gladstone Institutional Advisory LLC now owns 13,400 shares of the company’s stock valued at $172,000 after buying an additional 3,400 shares during the period. Sanctuary Advisors LLC bought a new stake in shares of Red Cat in the 3rd quarter valued at $25,000. Regency Capital Management Inc. DE acquired a new position in shares of Red Cat during the 4th quarter valued at $130,000. Atria Wealth Solutions Inc. bought a new position in Red Cat during the fourth quarter worth $134,000. Finally, U.S. Capital Wealth Advisors LLC acquired a new stake in Red Cat in the fourth quarter worth $139,000. 37.97% of the stock is owned by institutional investors.

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.