Red Cat (NASDAQ:RCAT) Trading Down 8.3% – Should You Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares traded down 8.3% during trading on Wednesday . The company traded as low as $11.59 and last traded at $11.98. 4,935,797 shares were traded during trading, a decline of 54% from the average session volume of 10,782,812 shares. The stock had previously closed at $13.06.

Red Cat Stock Down 15.2 %

The company’s 50-day moving average is $8.71 and its two-hundred day moving average is $4.67. The company has a market capitalization of $804.01 million, a P/E ratio of -21.80 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 analysts’ consensus estimates 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 quarter in the prior year, the company earned ($0.11) earnings per share. On average, sell-side analysts predict that Red Cat Holdings, Inc. will post -0.39 EPS for the current year.

Insider Activity at Red Cat

In other Red Cat news, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the company’s stock in a transaction that occurred 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 sale, the director now owns 681,072 shares in the company, valued at approximately $5,646,086.88. This represents a 32.57 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Joseph David Freedman sold 15,000 shares of Red Cat stock in a transaction dated Monday, December 30th. The shares were sold at an average price of $14.24, for a total transaction of $213,600.00. Following the completion of the sale, the director now owns 585,190 shares in the company, valued at approximately $8,333,105.60. This trade represents a 2.50 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,930,441 shares of company stock valued at $21,099,751 over the last 90 days. 21.50% of the stock is owned by corporate insiders.

Institutional Trading of Red Cat

Hedge funds have recently modified their holdings of the stock. Renaissance Technologies LLC acquired a new stake in shares of Red Cat in the 2nd quarter valued at about $267,000. Corsair Capital Management L.P. acquired a new stake in shares of Red Cat in the 3rd quarter valued at approximately $308,000. Wolverine Trading LLC purchased a new stake in shares of Red Cat during the 3rd quarter worth $233,000. Centiva Capital LP purchased a new position in Red Cat in the third quarter valued at about $207,000. Finally, State Street Corp raised its holdings in Red Cat by 44.9% during the third 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. 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.