Red Cat Holdings, Inc. (NASDAQ:RCAT) Shares Experience Notable Price Movement

Red Cat Holdings, Inc. (NASDAQ:RCAT) saw its stock price increase significantly before trading began on Thursday. The company’s shares had closed at $11.89 the previous day, but opened at a higher price of $12.16. The last recorded trading price for Red Cat was $13.41, with a significant trading volume of approximately 3,680,875 shares.

Recent Trading Activity

However, despite the initial gap up, Red Cat shares experienced a decline of 8.6%. The company currently holds a market capitalization of $982.77 million, with a negative price-to-earnings (P/E) ratio of -26.65 and a beta of 1.33, indicating its volatility compared to the market. The stock's 50-day moving average stands at $6.79, while the 200-day moving average is $3.86.

Earnings Report Insights

On December 16th, Red Cat announced its quarterly earnings, revealing an earnings per share (EPS) of -$0.18, which fell short of analysts' expectations, as the consensus estimate was $0.09. The company's negative return on equity is reported at 66.19%, and it has a net margin of -162.50%. Last year in the same quarter, EPS was reported at -$0.11. Analysts predict that Red Cat Holdings will report an EPS of -$0.39 for the current year.

Insider Transactions

In other happenings, on December 18th, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of company stock at an average price of $8.29, totaling around $2,726,813.12. Following this sale, he retains 681,072 shares, valued at approximately $5,646,086.88, marking a 32.57% decrease in his ownership. Moreover, on December 23rd, CEO Jeffrey M. Thompson sold 392,551 shares at an average price of $11.34, bringing the total value of this transaction to about $4,451,528.34. Post-sale, Thompson retains 13,121,898 shares valued at $148,802,323.32, representing a 2.90% reduction in his stake. Over the past ninety days, insider sales have totaled 1,915,441 shares valued at $20,886,151, with corporate insiders holding 21.50% of the company’s stock.

Institutional Investor Actions

Recent trading activity from hedge funds indicates a fluctuation in positions with Red Cat. Sanctuary Advisors LLC has taken a new position in the stock valued at about $25,000 during Q3. Similarly, Sheets Smith Wealth Management and United Capital Management of KS Inc. have made new stakes worth approximately $51,000 and $108,000, respectively. Additionally, XTX Topco Ltd increased its ownership by 390.9% in Q2, now holding 58,895 shares valued at $68,000, following a purchase of 46,897 additional shares. Lastly, Pekin Hardy Strauss Inc. has also entered a new position valued at around $138,000. Currently, institutional investors and hedge funds own about 37.97% of Red Cat’s stock.

Company Overview

Red Cat Holdings, Inc. specializes in providing a wide range of products, services, and solutions related to the drone industry. They operate through two primary segments: Enterprise and Consumer. The company has invested in infrastructure to manage drone fleets, conduct remote operations, and navigate complex environments, including industrial spaces and military operations.

Stock, Trading, Earnings