Red Cat (NASDAQ:RCAT) Trading Down 4.3% – Should You Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares traded down 4.3% during mid-day trading on Monday . The stock traded as low as $9.24 and last traded at $9.60. 3,559,813 shares traded hands during mid-day trading, a decline of 66% from the average session volume of 10,333,799 shares. The stock had previously closed at $10.03.

Red Cat Trading Up 10.0 %

The company has a 50 day moving average of $8.95 and a 200-day moving average of $4.83. The firm has a market capitalization of $826.46 million, a P/E ratio of -22.41 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 (EPS) for the quarter, missing the consensus estimate of $0.09 by ($0.27). Red Cat had a negative net margin of 162.50% and a negative return on equity of 66.19%. During the same period in the prior year, the company earned ($0.11) earnings per share. As a group, sell-side analysts forecast that Red Cat Holdings, Inc. will post -0.39 EPS for the current fiscal year.

Insider Activity

In other news, CEO Jeffrey M. Thompson sold 392,551 shares of the company’s stock in a transaction on Monday, December 23rd. The stock was sold at an average price of $11.34, for a total transaction of $4,451,528.34. Following the completion of the sale, the chief executive officer now directly owns 13,121,898 shares in the company, valued at approximately $148,802,323.32. This represents a 2.90 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Joseph David Freedman sold 15,000 shares of the company’s stock in a transaction 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 sale, the director now owns 585,190 shares of the company’s stock, valued at approximately $8,333,105.60. The trade was a 2.50 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 1,930,441 shares of company stock worth $21,099,751. 21.50% of the stock is currently owned by company insiders.

Institutional Trading of Red Cat

Institutional investors have recently modified their holdings of the stock. Sanctuary Advisors LLC bought a new stake in shares of Red Cat during the 3rd quarter worth $25,000. Sheets Smith Wealth Management bought a new stake in shares of Red Cat during the 3rd quarter worth $51,000. PVG Asset Management Corp bought a new stake in shares of Red Cat during the 2nd quarter worth $63,000. XTX Topco Ltd lifted 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 last quarter. Finally, United Capital Management of KS Inc. bought a new stake in shares of Red Cat during the 3rd quarter worth $108,000. 37.97% of the stock is currently owned by institutional investors.

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.