Red Cat (NASDAQ:RCAT) Shares Gap Up - Here's Why

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) 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 changing hands.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on RCAT shares. Northland Capmk raised shares of Red Cat to a "strong-buy" rating in a research report on Monday, March 10th. Northland Securities began coverage on Red Cat in a report on Tuesday, March 11th. They set an "outperform" rating and a $13.00 target price for the company.

Red Cat Trading Up 3.6 %

The firm's fifty day moving average price is $7.86 and its 200-day moving average price is $6.61. The company has a market cap of $464.04 million, a price-to-earnings ratio of -10.04 and a beta of 1.32. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.43 and a quick ratio of 0.60.

Red Cat (NASDAQ:RCAT - Get Free Report) last posted 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 net margin of 232.62% and a negative return on equity of 96.00%. During the same quarter last year, the business earned ($0.11) EPS. On average, equities analysts expect that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

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Insider Buying and Selling

In related news, CEO Jeffrey M. Thompson sold 392,551 shares of the company's stock in a transaction dated Monday, December 23rd. The shares were sold at an average price of $11.34, for a total value of $4,451,528.34. Following the completion of the sale, the chief executive officer now owns 13,121,898 shares of the company's stock, valued at $148,802,323.32. This represents a 2.90 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Joseph David Freedman sold 15,000 shares of the firm's stock in a transaction dated 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 directly owns 585,190 shares in the company, valued at approximately $8,333,105.60. The trade was a 2.50 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 1,037,891 shares of company stock valued at $12,794,012 in the last three months. 21.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Red Cat

A number of institutional investors have recently added to or reduced their stakes in RCAT. Sanctuary Advisors LLC bought a new stake in shares of Red Cat in the 3rd quarter worth $25,000. Twin Tree Management LP acquired a new position in Red Cat during the fourth quarter worth about $28,000. Bank of America Corp DE raised its position in Red Cat by 407.0% in the fourth quarter. Bank of America Corp DE now owns 3,397 shares of the company's stock worth $44,000 after acquiring an additional 2,727 shares in the last quarter. Mark Sheptoff Financial Planning LLC acquired a new stake in Red Cat in the 4th quarter valued at about $48,000. Finally, SBI Securities Co. Ltd. bought a new position in shares of Red Cat during the 4th quarter valued at about $60,000. 37.97% of the stock is currently 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.