Red Cat (NASDAQ:RCAT) Shares Gap Up – Should You Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares gapped up prior to trading on Monday . The stock had previously closed at $5.42, but opened at $5.73. Red Cat shares last traded at $6.03, with a volume of 1,705,691 shares trading hands.

Analyst Ratings Changes

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

Red Cat Trading Up 3.0 %

The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.60 and a current ratio of 1.43. The business’s 50 day moving average price is $7.63 and its 200-day moving average price is $6.73. The firm has a market cap of $527.40 million, a price-to-earnings ratio of -11.41 and a beta of 1.32.

Insider Activity at Red Cat

In other news, CEO Jeffrey M. Thompson sold 28,756 shares of Red Cat stock in a transaction dated Thursday, December 26th. The shares were sold at an average price of $13.97, for a total value of $401,721.32. Following the completion of the transaction, the chief executive officer now directly owns 13,014,449 shares of the company’s stock, valued at approximately $181,811,852.53. The trade was a 0.22 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Joseph David Freedman sold 15,000 shares of the stock in a transaction dated Monday, December 30th. The stock was sold at an average price of $14.24, for a total transaction of $213,600.00. Following the sale, the director now owns 585,190 shares in the company, valued at approximately $8,333,105.60. This trade represents a 2.50 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 373,247 shares of company stock valued at $5,310,158 over the last three months. 21.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Red Cat

Institutional investors have recently made changes to their positions in the stock. Waddell & Associates LLC bought a new stake in shares of Red Cat in the 4th quarter worth approximately $159,643,000. Rockefeller Capital Management L.P. bought a new stake in shares of Red Cat during the fourth quarter valued at approximately $6,628,000. Captrust Financial Advisors acquired a new position in shares of Red Cat during the fourth quarter worth approximately $4,262,000. Apis Capital Advisors LLC grew its holdings in Red Cat by 61.7% in the 4th 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 in 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 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.