Red Cat (NASDAQ:RCAT) Trading Down 3.9% – Time to Sell?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) dropped 3.9% during mid-day trading on Monday . The company traded as low as $7.82 and last traded at $8.45. Approximately 3,619,034 shares traded hands during trading, a decline of 64% from the average daily volume of 9,988,533 shares. The stock had previously closed at $8.79.

Red Cat Stock Down 2.6 %

The company has a market cap of $785.57 million, a P/E ratio of -18.15 and a beta of 1.24. The stock’s 50-day moving average price is $10.04 and its 200-day moving average price is $5.63. The company has a current ratio of 1.43, a quick ratio of 0.60 and a debt-to-equity ratio of 0.30.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings data on Monday, December 16th. The company reported ($0.18) EPS for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.27). Red Cat had a negative net margin of 232.62% and a negative return on equity of 96.00%. During the same period last year, the firm posted ($0.11) earnings per share. As a group, research analysts forecast that Red Cat Holdings, Inc. will post -0.5 EPS for the current year.

Insider Buying and Selling at Red Cat

In other Red Cat news, insider George Michael Matus sold 112,686 shares of Red Cat stock in a transaction that occurred on Wednesday, December 18th. The shares were sold at an average price of $9.20, for a total transaction of $1,036,711.20. Following the transaction, the insider now owns 973,103 shares of the company’s stock, valued at $8,952,547.60. This trade represents a 10.38 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, 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 owns 13,121,898 shares of the company’s stock, valued at $148,802,323.32. This trade represents a 2.90 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 1,930,441 shares of company stock valued at $21,099,751. Corporate insiders own 21.50% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Renaissance Technologies LLC bought a new stake in shares of Red Cat in the second quarter valued at approximately $267,000. Sheets Smith Wealth Management purchased a new position in Red Cat in the 3rd quarter valued at approximately $51,000. United Capital Management of KS Inc. bought a new stake in Red Cat during the 3rd quarter valued at $108,000. Pekin Hardy Strauss Inc. purchased a new stake in shares of Red Cat during the third quarter worth $138,000. Finally, Corsair Capital Management L.P. bought a new position in shares of Red Cat in the third quarter worth $308,000. 37.97% of the stock is owned by 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.