Red Cat (NASDAQ:RCAT) Trading Down 7.1% - Time to Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s stock price traded down 7.1% during mid-day trading on Friday . The stock traded as low as $9.10 and last traded at $9.38. 5,053,081 shares were traded during mid-day trading, a decline of 51% from the average session volume of 10,259,613 shares. The stock had previously closed at $10.10.

Red Cat Price Performance

The stock has a fifty day moving average of $9.23 and a 200 day moving average of $4.91. The stock has a market cap of $686.17 million, a price-to-earnings ratio of -15.85 and a beta of 1.32. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.43 and a quick ratio of 0.60.

Red Cat (NASDAQ:RCAT - Get Free Report) last released its quarterly earnings data on Monday, December 16th. The company reported ($0.18) 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 in the previous year, the company earned ($0.11) earnings per share. On average, analysts expect that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Insiders Place Their Bets

In other Red Cat news, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of the company's stock in a transaction that occurred on Friday, December 20th. The stock was sold at an average price of $10.44, for a total value of $1,188,312.12. Following the sale, the executive now owns 558,325 shares in the company, valued at approximately $5,828,913. This represents a 16.93 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Jeffrey M. Thompson sold 392,551 shares of Red Cat stock in a transaction that occurred on Monday, December 23rd. The shares were sold at an average price of $11.34, for a total transaction of $4,451,528.34. Following the transaction, the chief executive officer now directly owns 13,121,898 shares of the company's stock, valued at approximately $148,802,323.32. This trade represents a 2.90 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 1,930,441 shares of company stock valued at $21,099,751. Company insiders own 21.50% of the company's stock.

Institutional Investors Weigh In On Red Cat

Several hedge funds have recently modified their holdings of the company. Sanctuary Advisors LLC acquired a new position in Red Cat in the 3rd quarter worth about $25,000. Sheets Smith Wealth Management acquired a new position in shares of Red Cat during the 3rd quarter worth approximately $51,000. PVG Asset Management Corp purchased a new position in shares of Red Cat during the 2nd quarter valued at approximately $63,000. XTX Topco Ltd grew its stake in Red Cat by 390.9% in the 2nd quarter. XTX Topco Ltd now owns 58,895 shares of the company's stock valued at $68,000 after acquiring an additional 46,897 shares during the period. Finally, United Capital Management of KS Inc. purchased a new stake in Red Cat in the 3rd quarter worth $108,000. 37.97% of the stock is owned by hedge funds and other 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.