Red Cat (NASDAQ:RCAT) Shares Gap Up – Still a Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price gapped up before the market opened on Monday . The stock had previously closed at $5.42, but opened at $5.73. Red Cat shares last traded at $6.03, with a volume of 1,705,691 shares changing hands.

Analyst Upgrades and Downgrades

RCAT has been the subject of a number of research reports. Northland Securities initiated coverage on shares of Red Cat in a research report on Tuesday, March 11th. They set an “outperform” rating and a $13.00 target price for the company. Northland Capmk raised Red Cat to a “strong-buy” rating in a report on Monday, March 10th.

Red Cat Price Performance

The company has a debt-to-equity ratio of 0.30, a current ratio of 1.43 and a quick ratio of 0.60. The firm’s 50-day moving average is $7.76 and its two-hundred day moving average is $6.68. The company has a market cap of $518.84 million, a P/E ratio of -11.22 and a beta of 1.32.

Insider Buying and Selling at Red Cat

In related news, CEO Jeffrey M. Thompson sold 28,756 shares of the firm’s stock in a transaction that occurred on Thursday, December 26th. The stock was sold at an average price of $13.97, for a total transaction of $401,721.32. Following the completion of the sale, the chief executive officer now directly owns 13,014,449 shares of the company’s stock, valued at approximately $181,811,852.53. This trade represents a 0.22 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Joseph David Freedman sold 15,000 shares of the company’s stock in a transaction on Monday, December 30th. The shares were sold at an average price of $14.24, for a total value of $213,600.00. Following the completion of the transaction, the director now directly owns 585,190 shares in the company, valued at $8,333,105.60. This trade represents a 2.50 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 445,340 shares of company stock worth $6,182,483 over the last ninety days. Company insiders own 21.50% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in RCAT. Waddell & Associates LLC purchased a new stake in Red Cat in the 4th quarter valued at about $159,643,000. Vanguard Group Inc. raised its stake in shares of Red Cat by 9.0% during the fourth 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 in the last quarter. Apis Capital Advisors LLC boosted its holdings in shares of Red Cat by 61.7% in the fourth 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 increased its holdings in Red Cat by 1.8% during the 4th quarter. Geode Capital Management LLC now owns 602,596 shares of the company’s stock worth $7,747,000 after purchasing an additional 10,594 shares during the period. Finally, Rockefeller Capital Management L.P. bought a new stake in Red Cat during the 4th quarter valued at $6,628,000. 37.97% of the stock is currently owned by 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.