Red Cat (NASDAQ:RCAT) Trading Down 5.1% - Should You Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s stock price dropped 5.1% during trading on Thursday . The company traded as low as $8.79 and last traded at $8.87. Approximately 3,261,939 shares changed hands during mid-day trading, a decline of 68% from the average daily volume of 10,314,919 shares. The stock had previously closed at $9.35.

Red Cat Trading Up 14.1 %

The company has a 50-day moving average of $10.00 and a 200 day moving average of $5.57. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.43 and a quick ratio of 0.60. The company has a market cap of $806.41 million, a PE ratio of -18.63 and a beta of 1.24.

Red Cat (NASDAQ:RCAT - Get Free Report) last announced its earnings results on Monday, December 16th. The company reported ($0.18) EPS for the quarter, missing analysts' consensus estimates 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 previous year, the firm posted ($0.11) earnings per share. Analysts predict that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Joseph David Freedman sold 15,000 shares of Red Cat stock in a transaction 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 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider George Michael Matus sold 309,491 shares of the business's stock in a transaction on Thursday, December 26th. The shares were sold at an average price of $14.27, for a total transaction of $4,416,436.57. Following the sale, the insider now directly owns 304,406 shares of the company's stock, valued at $4,343,873.62. This represents a 50.41 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders 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

Institutional investors and hedge funds have recently bought and sold shares of the company. Renaissance Technologies LLC purchased a new stake in Red Cat in the second quarter worth about $267,000. Corsair Capital Management L.P. purchased a new stake in shares of Red Cat in the 3rd quarter worth approximately $308,000. Wolverine Trading LLC bought a new position in shares of Red Cat during the third quarter valued at approximately $233,000. Centiva Capital LP purchased a new position in Red Cat during the third quarter valued at approximately $207,000. Finally, State Street Corp raised its stake in Red Cat by 44.9% in the third quarter. State Street Corp now owns 221,958 shares of the company's stock worth $564,000 after buying an additional 68,800 shares in the last quarter. 37.97% of the stock is owned by 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.