Red Cat (NASDAQ:RCAT) Trading Down 8.6% – Time to Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares fell 8.6% on Monday . The company traded as low as $7.08 and last traded at $7.09. 2,515,862 shares were traded during trading, a decline of 72% from the average session volume of 8,867,720 shares. The stock had previously closed at $7.76.

Red Cat Stock Up 2.6 %

The company has a market cap of $543.49 million, a P/E ratio of -12.56 and a beta of 1.24. The company has a quick ratio of 0.60, a current ratio of 1.43 and a debt-to-equity ratio of 0.30. The company has a fifty day moving average of $10.08 and a 200 day moving average of $6.36.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings results on Monday, December 16th. The company reported ($0.18) earnings per share (EPS) 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 period in the prior year, the company earned ($0.11) EPS. On average, research analysts anticipate that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Insider Buying and Selling at Red Cat

In other news, insider George Michael Matus sold 309,491 shares of Red Cat stock in a transaction dated Thursday, December 26th. The stock was sold at an average price of $14.27, for a total transaction of $4,416,436.57. Following the transaction, the insider now directly owns 304,406 shares of the company’s stock, valued at $4,343,873.62. The trade was a 50.41 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the business’s stock in a transaction that occurred on Wednesday, December 18th. The shares were sold at an average price of $8.29, for a total value of $2,726,813.12. Following 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 ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders 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

Several large investors have recently added to or reduced their stakes in the company. Sanctuary Advisors LLC purchased a new stake in shares of Red Cat in the third quarter worth $25,000. Twin Tree Management LP purchased a new position in shares of Red Cat during the 4th quarter valued at $28,000. Bank of America Corp DE boosted its holdings in Red Cat by 407.0% in the 4th quarter. Bank of America Corp DE now owns 3,397 shares of the company’s stock worth $44,000 after buying an additional 2,727 shares during the period. Mark Sheptoff Financial Planning LLC purchased a new stake in Red Cat in the 4th quarter worth $48,000. Finally, Sheets Smith Wealth Management bought a new stake in Red Cat during the third quarter valued at about $51,000. Hedge funds and other institutional investors own 37.97% of the company’s stock.

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.