Red Cat (NASDAQ:RCAT) Trading Down 8.6% – Should You Sell?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) traded down 8.6% during trading on Monday . The stock traded as low as $7.77 and last traded at $7.89. 4,628,690 shares were traded during trading, a decline of 57% from the average session volume of 10,681,309 shares. The stock had previously closed at $8.63.

Red Cat Trading Up 1.0 %

The firm’s 50-day moving average is $9.93 and its 200-day moving average is $5.37. The company has a current ratio of 1.43, a quick ratio of 0.60 and a debt-to-equity ratio of 0.30. The firm has a market cap of $749.50 million, a price-to-earnings ratio of -17.31 and a beta of 1.32.

Red Cat (NASDAQ:RCAT) last posted its quarterly 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 net margin of 232.62% and a negative return on equity of 96.00%. During the same quarter last year, the company posted ($0.11) earnings per share. As a group, sell-side analysts anticipate that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Insiders Place Their Bets

In other Red Cat news, Director Joseph David Freedman sold 15,000 shares of the company’s stock in a transaction that occurred on Monday, December 30th. The stock was sold at an average price of $14.24, for a total value of $213,600.00. Following the completion of the sale, the director now owns 585,190 shares of the company’s stock, valued at $8,333,105.60. This represents a 2.50 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider George Michael Matus sold 112,686 shares of the business’s stock in a transaction that occurred on Wednesday, December 18th. The shares were sold at an average price of $9.20, for a total value of $1,036,711.20. Following the completion of the sale, the insider now owns 973,103 shares of the company’s stock, valued at $8,952,547.60. The trade was a 10.38 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 1,930,441 shares of company stock valued at $21,099,751 in the last three months. 21.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Red Cat

A number of institutional investors have recently added to or reduced their stakes in RCAT. Sanctuary Advisors LLC purchased a new stake in shares of Red Cat during the third quarter valued at $25,000. Sheets Smith Wealth Management bought a new stake in Red Cat during the 3rd quarter valued at approximately $51,000. PVG Asset Management Corp bought a new stake in Red Cat during the 2nd quarter valued at approximately $63,000. XTX Topco Ltd raised its stake in Red Cat by 390.9% during the 2nd quarter. XTX Topco Ltd now owns 58,895 shares of the company’s stock valued at $68,000 after purchasing an additional 46,897 shares during the period. Finally, United Capital Management of KS Inc. purchased a new position in Red Cat during the 3rd quarter valued at approximately $108,000. Institutional investors own 37.97% of the company’s stock.

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.