Red Cat (NASDAQ:RCAT) Shares Gap Down – Time to Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price gapped down prior to trading on Thursday . The stock had previously closed at $8.15, but opened at $7.98. Red Cat shares last traded at $8.29, with a volume of 1,136,280 shares traded.

Red Cat Stock Up 9.4 %

The firm has a market capitalization of $673.15 million, a P/E ratio of -19.39 and a beta of 1.33. The business’s 50-day simple moving average is $5.64 and its 200 day simple moving average is $3.37.

Red Cat (NASDAQ:RCAT) last posted 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 business earned ($0.11) EPS. Sell-side analysts predict that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current year.

Institutional Investors Weigh In On Red Cat

A number of large investors have recently modified their holdings of RCAT. Renaissance Technologies LLC bought a new stake in shares of Red Cat during the 2nd quarter valued at $267,000. XTX Topco Ltd boosted its stake in Red Cat by 390.9% during the second quarter. XTX Topco Ltd now owns 58,895 shares of the company’s stock worth $68,000 after acquiring an additional 46,897 shares in the last quarter. PVG Asset Management Corp purchased a new stake in Red Cat in the second quarter worth about $63,000. Sheets Smith Wealth Management purchased a new stake in Red Cat in the third quarter worth about $51,000. Finally, United Capital Management of KS Inc. bought a new position in shares of Red Cat during the third quarter valued at approximately $108,000. Institutional investors own 37.97% of the company’s stock.

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.