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

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price gapped down before the market opened on Monday . The stock had previously closed at $8.79, but opened at $8.20. Red Cat shares last traded at $8.14, with a volume of 2,267,429 shares.

Red Cat Stock Down 0.6 %

The business’s 50-day simple moving average is $10.02 and its 200 day simple moving average is $5.52. The firm has a market cap of $700.28 million, a PE ratio of -16.18 and a beta of 1.24. 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 issued its quarterly earnings data 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 net margin of 232.62% and a negative return on equity of 96.00%. During the same quarter in the previous year, the business earned ($0.11) EPS. As a group, equities research analysts expect that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Insider Buying and Selling

In other Red Cat news, Director Joseph David Freedman sold 15,000 shares of the firm’s stock in a transaction that occurred on Monday, December 30th. The shares were 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 directly owns 585,190 shares in the company, valued at $8,333,105.60. This trade represents a 2.50 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at 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 stock was sold at an average price of $11.34, for a total value of $4,451,528.34. Following the transaction, the chief executive officer now directly owns 13,121,898 shares in the company, valued at approximately $148,802,323.32. The trade was a 2.90 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,930,441 shares of company stock worth $21,099,751 in the last three months. 21.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Red Cat

Several institutional investors have recently added to or reduced their stakes in the business. Sanctuary Advisors LLC purchased a new position in shares of Red Cat in the 3rd quarter valued at approximately $25,000. Sheets Smith Wealth Management purchased a new position in shares of Red Cat in the third quarter worth $51,000. United Capital Management of KS Inc. acquired a new stake in shares of Red Cat during the third quarter worth $108,000. Regency Capital Management Inc. DE purchased a new stake in shares of Red Cat during the fourth quarter valued at $130,000. Finally, Atria Wealth Solutions Inc. acquired a new position in shares of Red Cat in the 4th quarter valued at $134,000. 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.