Red Cat (NASDAQ:RCAT) Shares Gap Up – Time to Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price gapped up prior to trading on Monday . The stock had previously closed at $5.66, but opened at $5.91. Red Cat shares last traded at $6.18, with a volume of 1,212,047 shares.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the company. Northland Securities started coverage on Red Cat in a research note on Tuesday, March 11th. They issued an “outperform” rating and a $13.00 target price on the stock. Northland Capmk raised shares of Red Cat to a “strong-buy” rating in a report on Monday, March 10th.

Red Cat Stock Performance

The company has a debt-to-equity ratio of 0.30, a current ratio of 1.43 and a quick ratio of 0.60. The company has a market capitalization of $519.10 million, a price-to-earnings ratio of -11.26 and a beta of 1.32. The firm has a fifty day simple moving average of $8.44 and a 200 day simple moving average of $6.60.

Red Cat (NASDAQ:RCAT) last issued its earnings results on Monday, December 16th. The company reported ($0.18) EPS for the quarter, missing analysts’ consensus estimates 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 quarter last year, the firm earned ($0.11) earnings per share. On average, analysts anticipate that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Insider Activity at Red Cat

In other Red Cat news, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the company’s stock in a transaction dated Wednesday, December 18th. The stock was sold at an average price of $8.29, for a total transaction of $2,726,813.12. Following the sale, the director now owns 681,072 shares in the company, valued at $5,646,086.88. This represents a 32.57 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Joseph David Freedman sold 50,000 shares of the stock in a transaction that occurred on Friday, December 20th. The shares were sold at an average price of $10.00, for a total transaction of $500,000.00. Following the completion of the sale, the director now directly owns 635,190 shares in the company, valued at approximately $6,351,900. This represents a 7.30 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 1,930,441 shares of company stock valued at $21,099,751. 21.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Red Cat

Institutional investors and hedge funds have recently bought and sold shares of the stock. Waddell & Associates LLC purchased a new position in Red Cat during the 4th quarter worth approximately $159,643,000. Rockefeller Capital Management L.P. purchased a new stake in shares of Red Cat in the fourth quarter valued at about $6,628,000. Captrust Financial Advisors acquired a new stake in shares of Red Cat during the fourth quarter worth about $4,262,000. Apis Capital Advisors LLC grew its holdings in shares of Red Cat by 61.7% during the fourth quarter. Apis Capital Advisors LLC now owns 650,000 shares of the company’s stock worth $8,352,000 after buying an additional 248,000 shares during the last quarter. Finally, Vanguard Group Inc. increased its position in Red Cat by 9.0% in the 4th quarter. Vanguard Group Inc. now owns 2,505,613 shares of the company’s stock valued at $32,197,000 after acquiring an additional 207,727 shares during the period. 37.97% of the stock is owned by hedge funds and other 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.