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

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

Red Cat Stock Down 5.0 %

The business’s 50 day moving average is $9.62 and its 200 day moving average is $5.15. 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 market cap of $666.13 million, a P/E ratio of -15.39 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) 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 prior year, the business earned ($0.11) earnings per share. As a group, equities analysts anticipate that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Jeffrey M. Thompson sold 392,551 shares of the 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 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 sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the firm’s stock in a transaction on Wednesday, December 18th. The stock was 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. The trade was a 32.57 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 1,930,441 shares of company stock worth $21,099,751. Corporate insiders own 21.50% of the company’s stock.

Institutional Investors Weigh In On Red Cat

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RCAT. Renaissance Technologies LLC acquired a new position in shares of Red Cat during the second quarter valued at about $267,000. State Street Corp grew its position in Red Cat by 44.9% during the 3rd quarter. State Street Corp now owns 221,958 shares of the company’s stock worth $564,000 after purchasing an additional 68,800 shares during the last quarter. Corsair Capital Management L.P. acquired a new position in Red Cat during the 3rd quarter valued at approximately $308,000. Wolverine Trading LLC purchased a new position in shares of Red Cat in the third quarter worth $233,000. Finally, Centiva Capital LP acquired a new stake in shares of Red Cat during the third quarter worth $207,000. 37.97% of the stock is currently 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.