Red Cat (NASDAQ:RCAT) Stock Price Down 8.3% - Time to Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) was down 8.3% during trading on Wednesday . The stock traded as low as $11.59 and last traded at $11.98. Approximately 4,935,797 shares were traded during mid-day trading, a decline of 54% from the average daily volume of 10,782,812 shares. The stock had previously closed at $13.06.

Red Cat Stock Performance

The firm has a market cap of $948.30 million, a PE ratio of -25.72 and a beta of 1.32. The company's 50-day simple moving average is $8.40 and its two-hundred day simple moving average is $4.55.

Red Cat (NASDAQ:RCAT - Get Free Report) last posted its 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 period in the prior year, the firm earned ($0.11) earnings per share. On average, analysts expect that Red Cat Holdings, Inc. will post -0.39 EPS for the current year.

Insider Activity at Red Cat

In related news, Director Joseph David Freedman sold 15,000 shares of Red Cat stock in a transaction that occurred 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 sale, the director now directly owns 585,190 shares in the company, valued at $8,333,105.60. The trade was a 2.50 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the stock in a transaction on 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 owns 681,072 shares of the company's stock, valued at approximately $5,646,086.88. This trade represents a 32.57 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 1,930,441 shares of company stock worth $21,099,751 over the last quarter. 21.50% of the stock is owned by corporate insiders.

Institutional Trading of Red Cat

Hedge funds and other institutional investors have recently modified their holdings of the business. Renaissance Technologies LLC bought a new stake in Red Cat during the second quarter worth about $267,000. XTX Topco Ltd grew its stake in shares of Red Cat by 390.9% in the 2nd quarter. XTX Topco Ltd now owns 58,895 shares of the company's stock worth $68,000 after buying an additional 46,897 shares during the last quarter. PVG Asset Management Corp bought a new position in Red Cat during the 2nd quarter valued at approximately $63,000. Sheets Smith Wealth Management purchased a new position in Red Cat during the third quarter valued at $51,000. Finally, United Capital Management of KS Inc. bought a new stake in Red Cat in the third quarter worth $108,000. 37.97% of the stock is owned by hedge funds and other institutional investors.

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.