Red Cat (NASDAQ:RCAT) Shares Down 7.1% – Time to Sell?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) were down 7.1% during trading on Friday . The stock traded as low as $9.10 and last traded at $9.38. Approximately 5,053,081 shares changed hands during mid-day trading, a decline of 51% from the average daily volume of 10,259,613 shares. The stock had previously closed at $10.10.

Red Cat Trading Down 12.3 %

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 business’s 50-day moving average is $9.23 and its 200 day moving average is $4.91. The firm has a market capitalization of $709.74 million, a P/E ratio of -16.42 and a beta of 1.32.

Red Cat (NASDAQ:RCAT) 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 net margin of 232.62% and a negative return on equity of 96.00%. During the same quarter last year, the company earned ($0.11) earnings per share. As a group, analysts anticipate that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Insider Transactions 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 shares were sold at an average price of $14.24, for a total value of $213,600.00. Following the transaction, the director now directly owns 585,190 shares of the company’s stock, valued at $8,333,105.60. This trade represents a 2.50 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of the company’s stock in a transaction on Friday, December 20th. The stock was sold at an average price of $10.44, for a total value of $1,188,312.12. Following the sale, the executive now owns 558,325 shares of the company’s stock, valued at $5,828,913. The trade was a 16.93 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 1,930,441 shares of company stock valued at $21,099,751. 21.50% of the stock is owned by corporate insiders.

Institutional Trading of Red Cat

Large investors have recently bought and sold shares of the business. Sanctuary Advisors LLC acquired a new stake in Red Cat in the third quarter valued at approximately $25,000. Sheets Smith Wealth Management acquired a new stake in Red Cat during the 3rd quarter worth about $51,000. PVG Asset Management Corp acquired a new stake in Red Cat during the second quarter worth approximately $63,000. XTX Topco Ltd grew its position in shares of Red Cat by 390.9% during 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 period. Finally, United Capital Management of KS Inc. bought a new stake in Red Cat in the third quarter valued at $108,000. 37.97% of the stock is 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.