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 trading hands.

Red Cat Price Performance

The firm has a fifty day simple moving average of $8.57 and a 200-day simple moving average of $4.61. The firm has a market cap of $804.82 million, a P/E ratio of -21.83 and a beta of 1.32.

Red Cat (NASDAQ:RCAT) last issued its earnings results on Monday, December 16th. The company reported ($0.18) earnings per share (EPS) 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 period in the prior year, the firm earned ($0.11) earnings per share. On average, equities analysts predict that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current year.

Insider Activity

In related news, CEO Jeffrey M. Thompson sold 392,551 shares of Red Cat stock in a transaction that occurred on Monday, December 23rd. The stock was sold at an average price of $11.34, for a total transaction of $4,451,528.34. Following the transaction, the chief executive officer now owns 13,121,898 shares of the company’s stock, valued at $148,802,323.32. The trade was a 2.90 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the stock in a transaction on Wednesday, December 18th. The shares were sold at an average price of $8.29, for a total value of $2,726,813.12. Following the completion of the sale, the director now directly owns 681,072 shares of the company’s stock, valued at $5,646,086.88. The trade was a 32.57 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,930,441 shares of company stock worth $21,099,751 over the last three months. 21.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RCAT. Sanctuary Advisors LLC purchased a new stake in Red Cat in the 3rd quarter valued at about $25,000. Wolverine Trading LLC bought a new position in shares of Red Cat in the third quarter valued at approximately $233,000. State Street Corp increased its position in shares of Red Cat by 44.9% during the third quarter. State Street Corp now owns 221,958 shares of the company’s stock valued at $564,000 after acquiring an additional 68,800 shares during the last quarter. Centiva Capital LP bought a new stake in Red Cat during the third quarter worth $207,000. Finally, Corsair Capital Management L.P. purchased a new position in Red Cat in the third quarter worth $308,000. 37.97% of the stock is currently owned by hedge funds and other institutional investors.

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.