Red Cat (NASDAQ:RCAT) Trading Down 7.1% – Should You Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price traded down 7.1% during mid-day trading on Friday . The stock traded as low as $9.10 and last traded at $9.38. 5,053,081 shares changed hands during trading, a decline of 51% from the average session volume of 10,259,613 shares. The stock had previously closed at $10.10.

Red Cat Stock Performance

The company has a quick ratio of 0.60, a current ratio of 1.43 and a debt-to-equity ratio of 0.30. The company has a market capitalization of $686.18 million, a PE ratio of -15.85 and a beta of 1.32. The business has a 50 day simple moving average of $9.33 and a 200 day simple moving average of $4.99.

Red Cat (NASDAQ:RCAT) last released its earnings results 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 return on equity of 96.00% and a negative net margin of 232.62%. During the same quarter last year, the firm earned ($0.11) earnings per share. Equities research analysts predict that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Insider Activity at Red Cat

In related news, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of the stock in a transaction that occurred on Friday, December 20th. The shares were sold at an average price of $10.44, for a total value of $1,188,312.12. Following the transaction, the executive now owns 558,325 shares in the company, valued at approximately $5,828,913. This represents a 16.93 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider George Michael Matus sold 309,491 shares of Red Cat stock in a transaction that occurred on Thursday, December 26th. The shares were sold at an average price of $14.27, for a total transaction of $4,416,436.57. Following the sale, the insider now owns 304,406 shares of the company’s stock, valued at approximately $4,343,873.62. The trade was a 50.41 % decrease in their ownership of the stock. 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 in the last ninety days. Company insiders own 21.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the business. Renaissance Technologies LLC acquired a new stake in Red Cat during the 2nd quarter worth about $267,000. State Street Corp grew 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 acquiring an additional 68,800 shares during the period. Corsair Capital Management L.P. purchased a new position in Red Cat during the third quarter valued at approximately $308,000. Wolverine Trading LLC acquired a new position in Red Cat in the third quarter valued at approximately $233,000. Finally, Centiva Capital LP purchased a new stake in Red Cat in the 3rd quarter worth approximately $207,000. Hedge funds and other institutional investors 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.