Red Cat (NASDAQ:RCAT) Shares Up 6.8% – Should You Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares were up 6.8% during mid-day trading on Monday . The stock traded as high as $7.01 and last traded at $6.59. Approximately 1,871,527 shares were traded during mid-day trading, a decline of 54% from the average daily volume of 4,089,532 shares. The stock had previously closed at $6.17.

Wall Street Analyst Weigh In

RCAT has been the topic of several research reports. Northland Securities began coverage on Red Cat in a research report 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 research note on Monday, March 10th.

Red Cat Price Performance

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 stock’s 50-day simple moving average is $7.16 and its 200 day simple moving average is $6.95. The company has a market cap of $555.86 million, a price-to-earnings ratio of -12.02 and a beta of 1.34.

Institutional Investors Weigh In On Red Cat

Hedge funds and other institutional investors have recently modified their holdings of the company. Sanctuary Advisors LLC acquired a new position in Red Cat during the third quarter worth approximately $25,000. Twin Tree Management LP acquired a new stake in Red Cat in the fourth quarter valued at $28,000. Bank of America Corp DE grew its position in Red Cat by 407.0% during the fourth quarter. Bank of America Corp DE now owns 3,397 shares of the company’s stock worth $44,000 after buying an additional 2,727 shares during the period. Mark Sheptoff Financial Planning LLC purchased a new position in Red Cat in the 4th quarter valued at approximately $48,000. Finally, SBI Securities Co. Ltd. purchased a new stake in shares of Red Cat in the 4th quarter worth about $60,000. 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.