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

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price gapped down prior to trading on Wednesday . The stock had previously closed at $13.06, but opened at $12.26. Red Cat shares last traded at $12.33, with a volume of 2,178,863 shares.

Red Cat Stock Down 11.0 %

The company has a 50 day moving average price of $8.22 and a 200-day moving average price of $4.50. The company has a market cap of $931.47 million, a P/E ratio of -25.26 and a beta of 1.32.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings results 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 162.50% and a negative return on equity of 66.19%. During the same quarter in the previous year, the company posted ($0.11) earnings per share. On average, research analysts expect that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current fiscal year.

Insider Activity at Red Cat

In other Red Cat news, Director Joseph David Freedman sold 15,000 shares of Red Cat 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 of the company’s stock, valued at approximately $8,333,105.60. The trade was a 2.50 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the company’s stock in a transaction that occurred on Wednesday, December 18th. The stock was sold at an average price of $8.29, for a total value of $2,726,813.12. Following the transaction, the director now directly owns 681,072 shares of the company’s stock, valued at approximately $5,646,086.88. This trade represents a 32.57 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 1,930,441 shares of company stock worth $21,099,751. 21.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Sanctuary Advisors LLC bought a new stake in shares of Red Cat during the third quarter worth $25,000. Sheets Smith Wealth Management acquired a new position in Red Cat in the third quarter valued at approximately $51,000. United Capital Management of KS Inc. bought a new position in Red Cat during the third quarter worth $108,000. XTX Topco Ltd grew its position in Red Cat by 390.9% in the 2nd quarter. XTX Topco Ltd now owns 58,895 shares of the company’s stock valued at $68,000 after purchasing an additional 46,897 shares during the period. Finally, Pekin Hardy Strauss Inc. purchased a new stake in shares of Red Cat in the third quarter valued at about $138,000. 37.97% of the stock is owned by institutional investors and hedge funds.

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.