Red Cat (NASDAQ:RCAT) Stock Price Down 15.2% - Should You Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) shares traded down 15.2% during mid-day trading on Monday . The stock traded as low as $8.29 and last traded at $8.56. 13,174,926 shares were traded during mid-day trading, a decline of 4% from the average session volume of 13,691,270 shares. The stock had previously closed at $10.10.

Red Cat Price Performance

The firm has a market capitalization of $698.75 million, a PE ratio of -16.06 and a beta of 1.32. The company has a quick ratio of 0.60, a current ratio of 1.43 and a debt-to-equity ratio of 0.30. The firm's fifty day simple moving average is $9.52 and its 200-day simple moving average is $5.12.

Red Cat (NASDAQ:RCAT - Get Free Report) last released its quarterly earnings data on Monday, December 16th. The company reported ($0.18) EPS for the quarter, missing the consensus estimate 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 in the previous year, the firm earned ($0.11) EPS. On average, research analysts forecast that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Insider Buying and Selling at Red Cat

In other news, 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 transaction 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 trade represents a 32.57 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider George Michael Matus sold 112,686 shares of the firm's stock in a transaction dated Wednesday, December 18th. The stock was sold at an average price of $9.20, for a total value of $1,036,711.20. Following the completion of the transaction, the insider now directly owns 973,103 shares in the company, valued at $8,952,547.60. This trade represents a 10.38 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 1,930,441 shares of company stock worth $21,099,751. Insiders own 21.50% of the company's stock.

Institutional Trading of Red Cat

Institutional investors and hedge funds have recently modified their holdings of the company. Sanctuary Advisors LLC purchased a new stake in Red Cat in the 3rd quarter worth $25,000. Regency Capital Management Inc. DE purchased a new position in Red Cat in the 4th quarter worth approximately $130,000. Myecfo LLC purchased a new stake in Red Cat during the 4th quarter valued at approximately $193,000. Sheets Smith Wealth Management purchased a new position in shares of Red Cat in the third quarter worth $51,000. Finally, Kieckhefer Group LLC bought a new position in shares of Red Cat during the fourth quarter worth $296,000. 37.97% of the stock is currently owned by 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.