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

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares gapped down prior to trading on Friday . The stock had previously closed at $9.43, but opened at $9.18. Red Cat shares last traded at $9.10, with a volume of 2,191,402 shares traded.

Red Cat Stock Performance

The firm has a 50 day moving average price of $10.11 and a 200 day moving average price of $6.04. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.43 and a quick ratio of 0.60.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings results on Monday, December 16th. The company reported ($0.18) earnings per share 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 company posted ($0.11) EPS. On average, equities analysts predict that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Insider Activity at Red Cat

In other Red Cat news, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of Red Cat 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 of the company’s stock, valued at $5,646,086.88. The trade was a 32.57 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider George Michael Matus sold 112,686 shares of the stock in a transaction that occurred on Wednesday, December 18th. The shares were sold at an average price of $9.20, for a total value 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 represents a 10.38 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 1,930,441 shares of company stock valued at $21,099,751. 21.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in RCAT. Sheets Smith Wealth Management purchased a new position in shares of Red Cat in the 3rd quarter worth approximately $51,000. United Capital Management of KS Inc. purchased a new position in Red Cat during the third quarter worth $108,000. Pekin Hardy Strauss Inc. bought a new position in Red Cat during the third quarter valued at $138,000. Corsair Capital Management L.P. purchased a new stake in shares of Red Cat in the third quarter valued at $308,000. Finally, Centiva Capital LP bought a new stake in shares of Red Cat in the 3rd quarter worth about $207,000. Institutional investors own 37.97% of the company’s stock.

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.