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

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock 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 Price Performance

The firm has a 50-day moving average of $8.22 and a 200-day moving average of $4.50. The stock has a market cap of $931.47 million, a PE ratio of -25.26 and a beta of 1.32.

Red Cat (NASDAQ:RCAT) 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 162.50% and a negative return on equity of 66.19%. During the same quarter in the prior year, the business posted ($0.11) EPS. Equities analysts forecast that Red Cat Holdings, Inc. will post -0.39 EPS for the current fiscal year.

Insider Transactions at Red Cat

In other Red Cat news, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of the business’s stock in a transaction that occurred on Friday, December 20th. The shares were sold at an average price of $10.44, for a total transaction of $1,188,312.12. Following the sale, the executive now owns 558,325 shares of the company’s stock, valued at approximately $5,828,913. The trade was a 16.93 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Joseph David Freedman sold 15,000 shares of the business’s stock in a transaction on Monday, December 30th. The shares were sold at an average price of $14.24, for a total transaction of $213,600.00. Following the transaction, the director now owns 585,190 shares of the company’s stock, valued at $8,333,105.60. This represents a 2.50 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 1,930,441 shares of company stock valued at $21,099,751. Company insiders own 21.50% of the company’s stock.

Hedge Funds Weigh In On Red Cat

Several large investors have recently modified their holdings of the business. Renaissance Technologies LLC purchased a new stake in Red Cat during the 2nd quarter worth about $267,000. State Street Corp grew its stake in shares of Red Cat by 44.9% during the 3rd quarter. State Street Corp now owns 221,958 shares of the company’s stock worth $564,000 after purchasing an additional 68,800 shares during the period. Corsair Capital Management L.P. acquired a new position in Red Cat during the third quarter worth $308,000. Wolverine Trading LLC purchased a new stake in shares of Red Cat in the third quarter valued at $233,000. Finally, Centiva Capital LP acquired a new position in Red Cat in the 3rd quarter valued at $207,000. Institutional investors and hedge funds own 37.97% of the company’s stock.

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.