Red Cat (NASDAQ:RCAT) Trading Down 8.2% - Time to Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s stock price dropped 8.2% during trading on Tuesday . The company traded as low as $10.02 and last traded at $9.87. Approximately 4,294,217 shares were traded during mid-day trading, a decline of 56% from the average daily volume of 9,692,133 shares. The stock had previously closed at $10.75.

Red Cat Stock Performance

• Can Palladyne AI Live Up to the Hype?

The stock's 50-day simple moving average is $10.10 and its 200 day simple moving average is $5.96. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.60 and a current ratio of 1.43. The company has a market capitalization of $755.91 million, a PE ratio of -17.46 and a beta of 1.24.

Red Cat (NASDAQ:RCAT - Get Free Report) last announced its quarterly earnings data on Monday, December 16th. The company reported ($0.18) EPS for the quarter, missing analysts' consensus estimates 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 earned ($0.11) earnings per share. As a group, research analysts expect that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Insider Activity at Red Cat

• Military Contract Fuels Growth in These 2 Autonomous Drone Stocks

In related news, insider George Michael Matus sold 309,491 shares of the stock in a transaction on Thursday, December 26th. The shares were sold at an average price of $14.27, for a total value of $4,416,436.57. Following the transaction, the insider now directly owns 304,406 shares of the company's stock, valued at $4,343,873.62. This trade represents a 50.41 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Joseph David Freedman sold 15,000 shares of the stock in a transaction on Monday, December 30th. The shares were sold at an average price of $14.24, for a total transaction of $213,600.00. Following the completion of the transaction, the director now directly owns 585,190 shares in the company, valued at $8,333,105.60. This trade represents a 2.50 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,930,441 shares of company stock valued at $21,099,751 in the last ninety days. Insiders own 21.50% of the company's stock.

Institutional Trading of Red Cat

Hedge funds have recently made changes to their positions in the company. Twin Tree Management LP acquired a new stake in shares of Red Cat in the 4th quarter worth $28,000. Mark Sheptoff Financial Planning LLC acquired a new stake in shares of Red Cat in the 4th quarter worth $48,000. SBI Securities Co. Ltd. acquired a new stake in shares of Red Cat in the fourth quarter valued at about $60,000. Jones Financial Companies Lllp lifted its stake in shares of Red Cat by 1,536.6% in the fourth quarter. Jones Financial Companies Lllp now owns 8,887 shares of the company's stock valued at $114,000 after purchasing an additional 8,344 shares during the period. Finally, Daiwa Securities Group Inc. acquired a new stake in shares of Red Cat in the fourth quarter valued at about $118,000. Institutional investors and hedge funds own 37.97% of the company's stock.

Red Cat Company Profile

• 2 Drone Stocks Surging from Increased Media Attention

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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