Red Cat (NASDAQ:RCAT) Trading Down 5.8% – Should You Sell?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) fell 5.8% during mid-day trading on Thursday . The stock traded as low as $11.44 and last traded at $12.10. 3,359,620 shares were traded during mid-day trading, an increase of 43% from the average session volume of 2,351,939 shares. The stock had previously closed at $12.85.

Red Cat Price Performance

The stock has a market capitalization of $1.06 billion, a P/E ratio of -28.70 and a beta of 1.33. The stock’s fifty day moving average is $7.80 and its 200-day moving average is $4.28.

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 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 company posted ($0.11) EPS. On average, research analysts expect that Red Cat Holdings, Inc. will post -0.39 EPS for the current year.

Insider Buying and Selling at Red Cat

In other news, insider George Michael Matus sold 112,686 shares of the company’s stock in a transaction that occurred on Wednesday, December 18th. The stock was sold at an average price of $9.20, for a total transaction of $1,036,711.20. Following the completion of the transaction, the insider now directly owns 973,103 shares in the company, valued at $8,952,547.60. The trade was a 10.38 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the 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 completion of the sale, the director now directly owns 681,072 shares of the company’s stock, valued at $5,646,086.88. This represents 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 worth $21,099,751 over the last 90 days. Insiders own 21.50% of the company’s stock.

Hedge Funds Weigh In On Red Cat

Large investors have recently bought and sold shares of the stock. Renaissance Technologies LLC acquired a new position in Red Cat in the 2nd quarter valued at approximately $267,000. XTX Topco Ltd raised its stake in shares of Red Cat by 390.9% in the second quarter. XTX Topco Ltd now owns 58,895 shares of the company’s stock valued at $68,000 after purchasing an additional 46,897 shares in the last quarter. PVG Asset Management Corp bought a new position in Red Cat in the second quarter worth $63,000. Sheets Smith Wealth Management bought a new position in Red Cat in the third quarter worth $51,000. Finally, United Capital Management of KS Inc. acquired a new stake in Red Cat during the third quarter worth $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.