Red Cat (NASDAQ:RCAT) Trading Down 7.3% – Time to Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price dropped 7.3% during trading on Friday . The company traded as low as $10.60 and last traded at $10.97. Approximately 3,781,421 shares changed hands during mid-day trading, a decline of 64% from the average daily volume of 10,397,875 shares. The stock had previously closed at $11.83.

Red Cat Price Performance

The firm has a market cap of $823.25 million, a price-to-earnings ratio of -22.33 and a beta of 1.32. The firm’s 50 day moving average price is $8.57 and its two-hundred day moving average price is $4.61.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings data on Monday, December 16th. The company reported ($0.18) earnings per share 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 business earned ($0.11) earnings per share. On average, analysts anticipate that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current year.

Insider Activity at Red Cat

In other news, Director Joseph David Freedman sold 15,000 shares of Red Cat 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 sale, the director now directly 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 legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider George Michael Matus sold 309,491 shares of the firm’s stock in a transaction 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 owns 304,406 shares of the company’s stock, valued at approximately $4,343,873.62. This represents a 50.41 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 1,930,441 shares of company stock worth $21,099,751 over the last 90 days. Company insiders own 21.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Renaissance Technologies LLC acquired a new stake in shares of Red Cat during the second quarter worth $267,000. XTX Topco Ltd boosted its position in Red Cat by 390.9% during 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. PVG Asset Management Corp acquired a new stake in shares of Red Cat in the second quarter valued at about $63,000. Sheets Smith Wealth Management acquired a new stake in Red Cat in the third quarter valued at approximately $51,000. Finally, United Capital Management of KS Inc. acquired a new stake in Red Cat during the 3rd quarter valued at $108,000. Institutional investors and hedge funds own 37.97% of the company’s stock.

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.