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

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) traded down 4.3% on Monday . The stock traded as low as $9.24 and last traded at $9.60. 3,559,813 shares changed hands during 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 firm has a market capitalization of $826.46 million, a P/E ratio of -22.41 and a beta of 1.32. The firm has a 50-day moving average of $8.95 and a two-hundred day moving average of $4.83.

Red Cat (NASDAQ:RCAT) last issued its 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 period last year, the firm posted ($0.11) earnings per share. On average, sell-side analysts anticipate that Red Cat Holdings, Inc. will post -0.39 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Joseph David Freedman sold 15,000 shares of the stock in a transaction dated Monday, December 30th. The stock was sold at an average price of $14.24, for a total value of $213,600.00. Following the completion of the sale, the director now owns 585,190 shares of the company’s stock, valued at approximately $8,333,105.60. This represents a 2.50 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the stock in a transaction dated Wednesday, December 18th. The shares were 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 approximately $5,646,086.88. The trade was a 32.57 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 1,930,441 shares of company stock valued at $21,099,751 in the last 90 days. Corporate insiders own 21.50% of the company’s stock.

Institutional Investors Weigh In On Red Cat

Institutional investors and hedge funds have recently made changes to their positions in the stock. Sanctuary Advisors LLC acquired a new stake in shares of Red Cat in the third quarter valued at about $25,000. Myecfo LLC acquired a new stake in shares of Red Cat in the fourth quarter valued at about $193,000. Sheets Smith Wealth Management acquired a new stake in shares of Red Cat in the third quarter valued at about $51,000. Kieckhefer Group LLC acquired a new stake in shares of Red Cat in the fourth quarter valued at about $296,000. Finally, United Capital Management of KS Inc. acquired a new stake in shares of Red Cat in the third quarter valued at about $108,000. Institutional investors and hedge funds own 37.97% of the company’s stock.

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.