Red Cat (NASDAQ:RCAT) Stock Price Down 0.9% – Should You Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares were down 0.9% during trading on Tuesday . The company traded as low as $8.11 and last traded at $8.48. Approximately 4,712,186 shares changed hands during trading, a decline of 55% from the average daily volume of 10,513,427 shares. The stock had previously closed at $8.56.

Red Cat Stock Down 1.4 %

The firm has a 50 day moving average of $9.43 and a 200 day moving average of $5.07. The firm has a market cap of $676.47 million, a price-to-earnings ratio of -15.73 and a beta of 1.32. The company has a quick ratio of 0.60, a current ratio of 1.43 and a debt-to-equity ratio of 0.30.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings data on Monday, December 16th. The company reported ($0.18) EPS 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 in the previous year, the company earned ($0.11) earnings per share. As a group, sell-side analysts predict that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Insider Buying and Selling at Red Cat

In related news, CEO Jeffrey M. Thompson sold 392,551 shares of the company’s stock in a transaction on Monday, December 23rd. The shares were sold at an average price of $11.34, for a total value of $4,451,528.34. Following the completion of the transaction, the chief executive officer now directly owns 13,121,898 shares in the company, valued at approximately $148,802,323.32. The trade was a 2.90 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the company’s stock in a transaction dated Wednesday, December 18th. The shares were sold at an average price of $8.29, for a total transaction of $2,726,813.12. Following the sale, the director now owns 681,072 shares of the company’s stock, valued at approximately $5,646,086.88. The trade was a 32.57 % 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 valued at $21,099,751 over the last three months. 21.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the stock. Sanctuary Advisors LLC bought a new position in shares of Red Cat in the third quarter worth approximately $25,000. Myecfo LLC purchased a new position in Red Cat in the 4th quarter worth about $193,000. Sheets Smith Wealth Management bought a new stake in shares of Red Cat in the third quarter valued at about $51,000. Kieckhefer Group LLC bought a new stake in Red Cat during the 4th quarter valued at $296,000. Finally, United Capital Management of KS Inc. purchased a new stake in shares of Red Cat during the 3rd quarter valued at $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.