Red Cat (NASDAQ:RCAT) Shares Down 8.8% – Should You Sell?

by · The Markets Daily

Red Cat Holdings, Inc. (NASDAQ:RCAT – Get Free Report)’s stock price fell 8.8% during mid-day trading on Wednesday . The stock traded as low as $12.10 and last traded at $12.85. 9,768,720 shares traded hands during mid-day trading, an increase of 315% from the average session volume of 2,351,939 shares. The stock had previously closed at $14.09.

Red Cat Price Performance

The company has a market capitalization of $1.03 billion, a price-to-earnings ratio of -27.93 and a beta of 1.33. The business has a fifty day moving average price of $7.21 and a 200 day moving average price of $4.08.

Red Cat (NASDAQ:RCAT – Get Free Report) last issued 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 return on equity of 66.19% and a negative net margin of 162.50%. During the same quarter last year, the business earned ($0.11) earnings per share. Research analysts anticipate that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider George Michael Matus sold 112,686 shares of the stock in a transaction on Wednesday, December 18th. The stock was sold at an average price of $9.20, for a total transaction of $1,036,711.20. Following the completion of the sale, the insider now directly owns 973,103 shares in the company, valued at approximately $8,952,547.60. This trade represents a 10.38 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Joseph David Freedman sold 15,000 shares of the stock in a transaction that occurred on Monday, December 30th. The shares were sold at an average price of $14.24, for a total value of $213,600.00. Following the transaction, the director now owns 585,190 shares in the company, valued at approximately $8,333,105.60. This trade represents a 2.50 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 1,930,441 shares of company stock worth $21,099,751. 21.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Centiva Capital LP bought a new position in shares of Red Cat during the 3rd quarter worth about $207,000. Wolverine Trading LLC bought a new stake in shares of Red Cat in the 3rd quarter worth approximately $233,000. Corsair Capital Management L.P. acquired a new position in shares of Red Cat in the third quarter valued at $308,000. Pekin Hardy Strauss Inc. bought a new position in shares of Red Cat during the 3rd quarter worth about $138,000. Finally, Renaissance Technologies LLC acquired a new position in Red Cat in the second quarter worth about $267,000. Institutional investors and hedge funds own 37.97% of the company’s stock.

About Red Cat

(Get Free Report)

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.

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