Red Cat (NASDAQ:RCAT) Trading Down 8.2% - Time to Sell?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) traded down 8.2% during trading on Tuesday . The company traded as low as $10.02 and last traded at $9.87. 4,294,217 shares traded hands during mid-day trading, a decline of 56% from the average session volume of 9,692,133 shares. The stock had previously closed at $10.75.

Red Cat Price Performance

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 fifty day moving average price of $10.11 and a 200 day moving average price of $6.04. The company has a market capitalization of $715.03 million, a P/E ratio of -16.52 and a beta of 1.24.

Red Cat (NASDAQ:RCAT - Get Free Report) last issued its earnings results on Monday, December 16th. The company reported ($0.18) earnings per share for the quarter, missing the consensus estimate 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 business earned ($0.11) earnings per share. On average, sell-side analysts forecast that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Insider Activity at Red Cat

In other news, Director Joseph David Freedman sold 15,000 shares of the stock in a transaction on Monday, December 30th. The stock was sold at an average price of $14.24, for a total value of $213,600.00. Following the completion of the transaction, the director now owns 585,190 shares of the company's stock, valued at approximately $8,333,105.60. This represents a 2.50 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CEO Jeffrey M. Thompson sold 392,551 shares of Red Cat stock in a transaction dated 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 sale, the chief executive officer now owns 13,121,898 shares in the company, valued at approximately $148,802,323.32. This represents a 2.90 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 1,930,441 shares of company stock worth $21,099,751 in the last ninety days. 21.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Red Cat

A number of institutional investors have recently added to or reduced their stakes in the company. Sanctuary Advisors LLC bought a new stake in shares of Red Cat in the 3rd quarter worth $25,000. Twin Tree Management LP bought a new position in shares of Red Cat during the 4th quarter valued at about $28,000. Mark Sheptoff Financial Planning LLC bought a new position in shares of Red Cat during the 4th quarter valued at about $48,000. Sheets Smith Wealth Management bought a new stake in shares of Red Cat in the 3rd quarter worth approximately $51,000. Finally, SBI Securities Co. Ltd. acquired a new stake in Red Cat during the fourth quarter valued at approximately $60,000. 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.