Red Cat (NASDAQ:RCAT) Shares Gap Up – Here’s Why

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) gapped up before the market opened on Wednesday . The stock had previously closed at $6.38, but opened at $6.82. Red Cat shares last traded at $6.69, with a volume of 4,646,451 shares.

Analysts Set New Price Targets

Several analysts recently commented on RCAT shares. Northland Capmk raised shares of Red Cat to a “strong-buy” rating in a report on Monday, March 10th. Northland Securities assumed coverage on shares of 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 2.4%

The company has a current ratio of 1.43, a quick ratio of 0.60 and a debt-to-equity ratio of 0.30. The firm’s 50 day simple moving average is $5.77 and its two-hundred day simple moving average is $7.43. The firm has a market cap of $587.44 million, a price-to-earnings ratio of -12.02 and a beta of 1.37.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings data on Wednesday, May 14th. The company reported ($0.27) earnings per share for the quarter, missing the consensus estimate of ($0.10) by ($0.17). Red Cat had a negative return on equity of 96.00% and a negative net margin of 232.62%. On average, equities analysts forecast that Red Cat Holdings, Inc. will post -0.5 EPS for the current year.

Institutional Trading of Red Cat

Several hedge funds and other institutional investors have recently bought and sold shares of the business. GW Henssler & Associates Ltd. acquired a new stake in Red Cat in the 1st quarter worth about $1,297,000. Royal Bank of Canada raised its position in shares of Red Cat by 76.4% in the 1st quarter. Royal Bank of Canada now owns 57,800 shares of the company’s stock valued at $340,000 after buying an additional 25,031 shares in the last quarter. Apis Capital Advisors LLC raised its position in shares of Red Cat by 4.9% in the 1st quarter. Apis Capital Advisors LLC now owns 682,000 shares of the company’s stock valued at $4,010,000 after buying an additional 32,000 shares in the last quarter. United Capital Management of KS Inc. raised its position in shares of Red Cat by 87.6% in the 1st quarter. United Capital Management of KS Inc. now owns 85,650 shares of the company’s stock valued at $504,000 after buying an additional 40,000 shares in the last quarter. Finally, Invesco Ltd. raised its position in shares of Red Cat by 309.8% in the 1st quarter. Invesco Ltd. now owns 96,134 shares of the company’s stock valued at $565,000 after buying an additional 72,678 shares in the last quarter. Institutional investors and hedge funds own 37.97% of the company’s stock.

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.