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

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) shares fell 8.6% during trading on Monday . The stock traded as low as $7.77 and last traded at $7.89. 4,628,690 shares traded hands during mid-day 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 Stock Performance

The stock's 50 day moving average is $9.84 and its two-hundred day moving average is $5.32. The stock has a market capitalization of $645.30 million, a price-to-earnings ratio of -14.91 and a beta of 1.32. The company has a current ratio of 1.43, a quick ratio of 0.60 and a debt-to-equity ratio of 0.30.

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

Insiders Place Their Bets

In related news, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the business's stock in a transaction that occurred on Wednesday, December 18th. The stock was sold at an average price of $8.29, for a total transaction of $2,726,813.12. Following the transaction, the director now directly owns 681,072 shares of the company's stock, valued at approximately $5,646,086.88. The trade was a 32.57 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of the stock in a transaction on Friday, December 20th. The shares were sold at an average price of $10.44, for a total value of $1,188,312.12. Following the completion of the sale, the executive now owns 558,325 shares in the company, valued at approximately $5,828,913. This trade represents a 16.93 % 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 corporate insiders.

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Hedge Funds Weigh In On Red Cat

Institutional investors and hedge funds have recently modified their holdings of the stock. Sanctuary Advisors LLC bought a new position in Red Cat in the 3rd quarter valued at about $25,000. Regency Capital Management Inc. DE acquired a new position in Red Cat in the 4th quarter valued at $130,000. U.S. Capital Wealth Advisors LLC bought a new position in Red Cat during the 4th quarter worth $139,000. Myecfo LLC acquired a new stake in shares of Red Cat during the fourth quarter worth $193,000. Finally, Sheets Smith Wealth Management bought a new stake in shares of Red Cat in the third quarter valued at about $51,000. 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.