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

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price gapped up before the market opened 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.

Analysts Set New Price Targets

A number of brokerages have commented on RCAT. Northland Capmk raised Red Cat to a “strong-buy” rating in a report on Monday, March 10th. Northland Securities initiated 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 Stock Down 11.1 %

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 business has a 50-day moving average price of $8.12 and a 200-day moving average price of $6.63. The firm has a market capitalization of $440.93 million, a PE ratio of -9.54 and a beta of 1.32.

Red Cat (NASDAQ:RCAT) last posted its quarterly 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 period in the previous year, the business earned ($0.11) earnings per share. Equities research analysts forecast that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of the stock in a transaction that occurred on Friday, December 20th. The stock was sold at an average price of $10.44, for a total value of $1,188,312.12. Following the completion of the transaction, the executive now directly owns 558,325 shares in the company, valued at approximately $5,828,913. This represents a 16.93 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Jeffrey M. Thompson sold 392,551 shares of the stock in a transaction that occurred on 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 owns 13,121,898 shares of the company’s stock, 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. Over the last three months, insiders sold 1,488,827 shares of company stock worth $17,336,227. Company insiders own 21.50% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Silver Oak Securities Incorporated boosted its position in shares of Red Cat by 502.3% during the fourth quarter. Silver Oak Securities Incorporated now owns 60,755 shares of the company’s stock worth $856,000 after buying an additional 50,668 shares during the period. N.E.W. Advisory Services LLC purchased a new position in shares of Red Cat during the fourth quarter worth $423,000. Centiva Capital LP purchased a new position in shares of Red Cat during the third quarter worth $207,000. Wolverine Trading LLC purchased a new position in shares of Red Cat during the third quarter worth $233,000. Finally, Corsair Capital Management L.P. purchased a new position in shares of Red Cat during the third quarter worth $308,000. 37.97% of the stock is currently 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.