Red Cat (NASDAQ:RCAT) Shares Down 7.3% – Time to Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares fell 7.3% during mid-day trading on Friday . The company 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 business’s 50-day moving average price is $8.57 and its two-hundred day moving average price is $4.61. The firm has a market cap of $823.25 million, a price-to-earnings ratio of -22.33 and a beta of 1.32.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings data 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 66.19% and a negative net margin of 162.50%. During the same quarter last year, the business earned ($0.11) EPS. Equities analysts predict that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider George Michael Matus sold 112,686 shares of the firm’s stock in a transaction that occurred on Wednesday, December 18th. The shares were sold at an average price of $9.20, for a total transaction of $1,036,711.20. Following the completion of the sale, the insider now directly owns 973,103 shares in the company, valued at approximately $8,952,547.60. This trade represents a 10.38 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of the company’s 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 transaction, the executive now directly owns 558,325 shares in the company, valued at $5,828,913. This represents a 16.93 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 1,930,441 shares of company stock valued at $21,099,751. Insiders own 21.50% of the company’s stock.

Hedge Funds Weigh In On Red Cat

A number of hedge funds have recently modified their holdings of RCAT. Sanctuary Advisors LLC purchased a new stake in Red Cat during the third quarter valued at about $25,000. Sheets Smith Wealth Management acquired a new stake in shares of Red Cat during the third quarter valued at approximately $51,000. PVG Asset Management Corp purchased a new stake in shares of Red Cat in the 2nd quarter valued at approximately $63,000. XTX Topco Ltd boosted its stake in 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 purchasing an additional 46,897 shares during the period. Finally, United Capital Management of KS Inc. purchased a new position in Red Cat during the 3rd quarter worth approximately $108,000. 37.97% of the stock is currently owned by institutional investors and hedge funds.

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.