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

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price gapped down before the market opened on Friday . The stock had previously closed at $9.43, but opened at $9.18. Red Cat shares last traded at $9.10, with a volume of 2,191,402 shares changing hands.

Red Cat Price Performance

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 has a fifty day moving average price of $10.10 and a two-hundred day moving average price of $5.96. The stock has a market capitalization of $712.30 million, a P/E ratio of -16.56 and a beta of 1.24.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings results on Monday, December 16th. The company reported ($0.18) earnings per share 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 prior year, the company earned ($0.11) EPS. On average, analysts expect that Red Cat Holdings, Inc. will post -0.5 EPS for the current year.

Insider Activity at Red Cat

In other Red Cat news, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the firm’s stock in a transaction dated 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 ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Jeffrey M. Thompson sold 392,551 shares of the firm’s stock in a transaction dated Monday, December 23rd. The stock was sold at an average price of $11.34, for a total value of $4,451,528.34. Following the completion of the transaction, the chief executive officer now directly owns 13,121,898 shares in the company, valued at $148,802,323.32. The trade was a 2.90 % 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 over the last ninety days. Insiders own 21.50% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Sanctuary Advisors LLC purchased a new position in Red Cat in the third quarter worth about $25,000. Twin Tree Management LP purchased a new position in Red Cat in the fourth quarter worth about $28,000. Mark Sheptoff Financial Planning LLC bought a new position in shares of Red Cat in the fourth quarter worth about $48,000. Sheets Smith Wealth Management bought a new position in shares of Red Cat in the third quarter worth about $51,000. Finally, SBI Securities Co. Ltd. bought a new stake in Red Cat during the 4th quarter valued at approximately $60,000. 37.97% of the stock is 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.