Red Cat (NASDAQ:RCAT) Shares Down 7.1% – Should You Sell?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) dropped 7.1% during mid-day trading on Friday . The stock traded as low as $9.10 and last traded at $9.38. Approximately 5,053,081 shares changed hands during mid-day trading, a decline of 51% from the average daily volume of 10,259,613 shares. The stock had previously closed at $10.10.

Red Cat Stock Down 12.3 %

The firm’s 50-day simple moving average is $9.23 and its 200 day simple moving average is $4.91. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.60 and a current ratio of 1.43. The stock has a market capitalization of $709.74 million, a P/E ratio of -16.42 and a beta of 1.32.

Red Cat (NASDAQ:RCAT) last released its earnings results 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 return on equity of 96.00% and a negative net margin of 232.62%. During the same period in the prior year, the business posted ($0.11) EPS. As a group, research analysts expect that Red Cat Holdings, Inc. will post -0.5 EPS 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 stock was 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 directly owns 585,190 shares in the company, valued at approximately $8,333,105.60. The trade was a 2.50 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider George Michael Matus sold 309,491 shares of the business’s stock in a transaction that occurred on Thursday, December 26th. The stock was sold at an average price of $14.27, for a total value of $4,416,436.57. Following the transaction, the insider now directly owns 304,406 shares in the company, valued at $4,343,873.62. The trade was a 50.41 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 1,930,441 shares of company stock valued at $21,099,751. 21.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Red Cat

Several institutional investors and hedge funds have recently modified their holdings of RCAT. Renaissance Technologies LLC bought a new stake in shares of Red Cat during the 2nd quarter worth about $267,000. Corsair Capital Management L.P. bought a new stake in shares of Red Cat during the third quarter worth approximately $308,000. Wolverine Trading LLC acquired a new position in shares of Red Cat in the third quarter valued at approximately $233,000. Centiva Capital LP bought a new position in shares of Red Cat during the third quarter worth approximately $207,000. Finally, State Street Corp lifted its holdings in Red Cat by 44.9% during the 3rd quarter. State Street Corp now owns 221,958 shares of the company’s stock worth $564,000 after purchasing an additional 68,800 shares during the last quarter. 37.97% of the stock is currently owned by institutional investors and hedge funds.

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.