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

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

Wall Street Analyst Weigh In

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

Red Cat Stock 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 stock’s fifty day simple moving average is $7.63 and its two-hundred day simple moving average is $6.73. The company has a market capitalization of $527.40 million, a price-to-earnings ratio of -11.41 and a beta of 1.32.

Insider Buying and Selling

In related news, insider George Michael Matus sold 309,491 shares of the stock in a transaction on Thursday, December 26th. The stock was sold at an average price of $14.27, for a total value of $4,416,436.57. Following the completion of the transaction, the insider now owns 304,406 shares in the company, valued at $4,343,873.62. This trade represents a 50.41 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Joseph David Freedman sold 15,000 shares of the business’s stock in a transaction dated Monday, December 30th. The stock was sold at an average price of $14.24, for a total value of $213,600.00. Following the sale, the director now 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 have sold 373,247 shares of company stock worth $5,310,158 in the last ninety days. 21.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Waddell & Associates LLC acquired a new stake in shares of Red Cat during the fourth quarter valued at approximately $159,643,000. Vanguard Group Inc. grew its position in Red Cat by 9.0% during the 4th quarter. Vanguard Group Inc. now owns 2,505,613 shares of the company’s stock worth $32,197,000 after purchasing an additional 207,727 shares in the last quarter. Apis Capital Advisors LLC raised its stake in Red Cat by 61.7% during the 4th quarter. Apis Capital Advisors LLC now owns 650,000 shares of the company’s stock valued at $8,352,000 after purchasing an additional 248,000 shares during the period. Geode Capital Management LLC lifted its holdings in shares of Red Cat by 1.8% in the fourth quarter. Geode Capital Management LLC now owns 602,596 shares of the company’s stock valued at $7,747,000 after purchasing an additional 10,594 shares in the last quarter. Finally, Rockefeller Capital Management L.P. acquired a new stake in shares of Red Cat in the fourth quarter worth $6,628,000. 37.97% of the stock is currently owned by institutional investors and hedge funds.

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.