Red Cat (NASDAQ:RCAT) Stock Price Down 8.8% - Time to Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) traded down 8.8% during mid-day trading on Wednesday . The stock traded as low as $12.10 and last traded at $12.85. 9,768,720 shares changed hands during trading, an increase of 315% from the average session volume of 2,351,939 shares. The stock had previously closed at $14.09.

Red Cat Stock Down 8.8 %

The business's 50 day simple moving average is $7.21 and its 200 day simple moving average is $4.08. The company has a market capitalization of $1.03 billion, a PE ratio of -27.93 and a beta of 1.33.

Red Cat (NASDAQ:RCAT - Get Free Report) last issued its quarterly earnings results 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 162.50% and a negative return on equity of 66.19%. During the same quarter in the previous year, the company posted ($0.11) earnings per share. On average, analysts anticipate that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Jeffrey M. Thompson sold 392,551 shares of Red Cat stock in a transaction on Monday, December 23rd. The stock was sold at an average price of $11.34, for a total transaction of $4,451,528.34. Following the completion of the sale, the chief executive officer now 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the company's stock in a transaction dated Wednesday, December 18th. The stock was sold at an average price of $8.29, for a total value of $2,726,813.12. Following the completion of the transaction, the director now directly owns 681,072 shares in the company, valued at approximately $5,646,086.88. The trade was a 32.57 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 1,930,441 shares of company stock worth $21,099,751. 21.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Red Cat

Large investors have recently made changes to their positions in the company. Sanctuary Advisors LLC acquired a new stake in Red Cat in the third quarter valued at approximately $25,000. Sheets Smith Wealth Management bought a new position in shares of Red Cat during the 3rd quarter valued at $51,000. PVG Asset Management Corp acquired a new stake in shares of Red Cat in the 2nd quarter valued at $63,000. XTX Topco Ltd boosted its holdings in Red Cat by 390.9% in the second quarter. XTX Topco Ltd now owns 58,895 shares of the company's stock worth $68,000 after purchasing an additional 46,897 shares in the last quarter. Finally, United Capital Management of KS Inc. acquired a new position in Red Cat during the third quarter worth $108,000. Institutional investors 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.