Red Cat (NASDAQ:RCAT) Shares Down 5.8% – Time to Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price traded down 5.8% on Thursday . The stock traded as low as $11.44 and last traded at $12.10. 3,359,620 shares were traded during mid-day trading, an increase of 43% from the average session volume of 2,351,939 shares. The stock had previously closed at $12.85.

Red Cat Price Performance

The stock has a market capitalization of $1.06 billion, a price-to-earnings ratio of -28.70 and a beta of 1.33. The business has a fifty day moving average of $7.80 and a 200-day moving average of $4.28.

Red Cat (NASDAQ:RCAT) last issued its 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 return on equity of 66.19% and a negative net margin of 162.50%. During the same quarter in the prior year, the firm earned ($0.11) EPS. As a group, research analysts anticipate that Red Cat Holdings, Inc. will post -0.39 EPS for the current year.

Insiders Place Their Bets

In other news, CEO Jeffrey M. Thompson sold 392,551 shares of the 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 completion of the sale, the chief executive officer now owns 13,121,898 shares in the company, valued at $148,802,323.32. This represents a 2.90 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of Red Cat stock in a transaction on Wednesday, December 18th. The shares were sold at an average price of $8.29, for a total value of $2,726,813.12. Following the transaction, the director now owns 681,072 shares in the company, valued at $5,646,086.88. This represents a 32.57 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 1,930,441 shares of company stock worth $21,099,751. Company insiders own 21.50% of the company’s stock.

Institutional Trading of Red Cat

A number of hedge funds have recently made changes to their positions in RCAT. Renaissance Technologies LLC purchased a new stake in shares of Red Cat during the second quarter worth $267,000. State Street Corp raised its stake in shares of Red Cat by 44.9% during the 3rd quarter. State Street Corp now owns 221,958 shares of the company’s stock worth $564,000 after purchasing an additional 68,800 shares in the last quarter. Corsair Capital Management L.P. acquired a new stake in shares of Red Cat during the 3rd quarter valued at about $308,000. Wolverine Trading LLC acquired a new position in Red Cat in the third quarter worth approximately $233,000. Finally, Centiva Capital LP acquired a new position in Red Cat in the third quarter worth approximately $207,000. 37.97% of the stock is owned by hedge funds and other institutional investors.

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.