Red Cat (NASDAQ:RCAT) Trading Down 7.3% - Time to Sell?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) fell 7.3% on Friday . The stock traded as low as $10.60 and last traded at $10.97. 3,781,421 shares traded hands during mid-day trading, a decline of 64% from the average session volume of 10,397,875 shares. The stock had previously closed at $11.83.

Red Cat Price Performance

The stock has a 50-day moving average price of $8.71 and a 200-day moving average price of $4.67. The company has a market capitalization of $804.01 million, a P/E ratio of -21.80 and a beta of 1.32.

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 (EPS) for the quarter, missing the consensus estimate of $0.09 by ($0.27). Red Cat had a negative return on equity of 66.19% and a negative net margin of 162.50%. During the same quarter in the prior year, the business posted ($0.11) EPS. Sell-side analysts anticipate that Red Cat Holdings, Inc. will post -0.39 EPS for the current fiscal year.

Insider Buying and Selling at Red Cat

In other Red Cat news, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of the stock in a transaction that occurred on Friday, December 20th. The stock was sold at an average price of $10.44, for a total transaction of $1,188,312.12. Following the transaction, the executive now directly 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 filing with the Securities & Exchange Commission, which is accessible 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 transaction, the insider now owns 304,406 shares in the company, valued at $4,343,873.62. The trade was a 50.41 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 1,930,441 shares of company stock valued at $21,099,751. 21.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Red Cat

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Sanctuary Advisors LLC bought a new position in Red Cat in the third quarter worth approximately $25,000. Sheets Smith Wealth Management bought a new stake in shares of Red Cat during the third quarter worth about $51,000. PVG Asset Management Corp acquired a new stake in shares of Red Cat in the 2nd quarter worth about $63,000. XTX Topco Ltd lifted its position 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 in the last quarter. Finally, United Capital Management of KS Inc. acquired a new position in Red Cat during the 3rd quarter valued at about $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.