Red Cat (NASDAQ:RCAT) Shares Down 5.1% - Time to Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) shares dropped 5.1% during mid-day trading on Thursday . The stock traded as low as $8.79 and last traded at $8.87. Approximately 3,261,939 shares were traded during trading, a decline of 68% from the average daily volume of 10,314,919 shares. The stock had previously closed at $9.35.

Red Cat Stock Up 0.9 %

The firm has a fifty day simple moving average of $10.02 and a 200 day simple moving average of $5.50. The company has a quick ratio of 0.60, a current ratio of 1.43 and a debt-to-equity ratio of 0.30.

Red Cat (NASDAQ:RCAT - Get Free Report) last issued its earnings results 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 period last year, the business earned ($0.11) earnings per share. As a group, analysts expect that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Insider Activity

In other Red Cat news, Director Joseph David Freedman sold 15,000 shares of Red Cat 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 transaction, the director now directly owns 585,190 shares of the company's stock, valued at approximately $8,333,105.60. This trade represents a 2.50 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the business's stock in a transaction 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 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 three months, insiders have sold 1,930,441 shares of company stock worth $21,099,751. Corporate insiders own 21.50% of the company's stock.

Hedge Funds Weigh In On Red Cat

A number of institutional investors and hedge funds have recently added to or reduced their stakes in RCAT. Sanctuary Advisors LLC bought a new position in shares of Red Cat in the third quarter valued at approximately $25,000. Regency Capital Management Inc. DE acquired a new stake in Red Cat during the 4th quarter valued at $130,000. Atria Wealth Solutions Inc. bought a new position in Red Cat in the 4th quarter valued at $134,000. U.S. Capital Wealth Advisors LLC acquired a new position in Red Cat in the fourth quarter worth $139,000. Finally, Gladstone Institutional Advisory LLC grew its holdings in shares of Red Cat by 34.0% during the fourth quarter. Gladstone Institutional Advisory LLC now owns 13,400 shares of the company's stock worth $172,000 after purchasing an additional 3,400 shares during the last quarter. 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.