Red Cat (NASDAQ:RCAT) Stock Price Down 8.3% – Time to Sell?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) were down 8.3% during mid-day trading on Wednesday . The stock traded as low as $11.59 and last traded at $11.98. Approximately 4,935,797 shares changed hands during trading, a decline of 54% from the average daily volume of 10,782,812 shares. The stock had previously closed at $13.06.

Red Cat Trading Down 15.2 %

The business has a 50 day simple moving average of $8.71 and a 200-day simple moving average of $4.67. The stock has a market capitalization of $804.01 million, a price-to-earnings ratio of -21.80 and a beta of 1.32.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings results on Monday, December 16th. The company reported ($0.18) earnings per share for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.27). Red Cat had a negative net margin of 162.50% and a negative return on equity of 66.19%. During the same quarter last year, the firm earned ($0.11) EPS. Research analysts predict that Red Cat Holdings, Inc. will post -0.39 EPS for the current year.

Insiders Place Their Bets

In other Red Cat news, CEO Jeffrey M. Thompson sold 392,551 shares of the company’s stock in a transaction dated Monday, December 23rd. The shares were sold at an average price of $11.34, for a total transaction of $4,451,528.34. Following the completion of the sale, the chief executive officer now directly owns 13,121,898 shares of the company’s stock, valued at approximately $148,802,323.32. This represents a 2.90 % 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, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of the stock in a transaction 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 completion of the sale, the executive now owns 558,325 shares of the company’s stock, valued at $5,828,913. The trade was a 16.93 % 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 ninety days. Corporate insiders own 21.50% of the company’s stock.

Institutional Trading of Red Cat

A number of institutional investors have recently added to or reduced their stakes in RCAT. Sanctuary Advisors LLC bought a new stake in Red Cat in the 3rd quarter valued at $25,000. Sheets Smith Wealth Management bought a new position in shares of Red Cat in the 3rd quarter valued at about $51,000. United Capital Management of KS Inc. acquired a new stake in shares of Red Cat during the 3rd quarter worth approximately $108,000. Pekin Hardy Strauss Inc. bought a new stake in shares of Red Cat during the third quarter worth approximately $138,000. Finally, PVG Asset Management Corp bought a new position in Red Cat in the second quarter valued at approximately $63,000. 37.97% of the stock is currently owned by institutional investors and hedge funds.

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.