Red Cat (NASDAQ:RCAT) Shares Down 8.6% – Should You Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price traded down 8.6% during mid-day trading on Monday . The company traded as low as $7.08 and last traded at $7.09. 2,515,862 shares were traded during mid-day trading, a decline of 72% from the average session volume of 8,867,720 shares. The stock had previously closed at $7.76.

Red Cat Stock Performance

The company has a market cap of $590.38 million, a price-to-earnings ratio of -13.60 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. The stock’s 50 day moving average price is $10.21 and its 200 day moving average price is $6.30.

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

Insider Buying and Selling

In other Red Cat news, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the business’s stock in a transaction that occurred on Wednesday, December 18th. The shares were sold at an average price of $8.29, for a total transaction of $2,726,813.12. Following the completion of the sale, the director now directly owns 681,072 shares in the company, valued at $5,646,086.88. The trade was a 32.57 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Joseph David Freedman sold 15,000 shares of the stock in a transaction on Monday, December 30th. The stock was 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 directly owns 585,190 shares of the company’s stock, valued at $8,333,105.60. The trade was a 2.50 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 1,930,441 shares of company stock valued at $21,099,751. 21.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Squarepoint Ops LLC grew its position in Red Cat by 23.0% in the fourth quarter. Squarepoint Ops LLC now owns 15,496 shares of the company’s stock valued at $199,000 after acquiring an additional 2,902 shares in the last quarter. Two Sigma Advisers LP bought a new stake in shares of Red Cat in the fourth quarter worth $362,000. Tidal Investments LLC acquired a new stake in shares of Red Cat in the 4th quarter valued at about $270,000. Nomura Holdings Inc. bought a new position in Red Cat during the 4th quarter worth approximately $180,000. Finally, OMERS ADMINISTRATION Corp bought a new position in Red Cat during the fourth quarter worth $1,714,000. 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.