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

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) gapped up prior to trading 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.

Analyst Upgrades and Downgrades

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

Red Cat Price Performance

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 company has a market cap of $518.84 million, a PE ratio of -11.22 and a beta of 1.32. The firm has a 50 day moving average of $7.76 and a two-hundred day moving average of $6.68.

Insiders Place Their Bets

In other news, CEO Jeffrey M. Thompson sold 28,756 shares of Red Cat stock in a transaction on Thursday, December 26th. The shares were sold at an average price of $13.97, for a total transaction of $401,721.32. Following the transaction, the chief executive officer now owns 13,014,449 shares in the company, valued at $181,811,852.53. This trade represents a 0.22 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider George Michael Matus sold 72,093 shares of the company’s stock in a transaction on Tuesday, December 24th. The stock was sold at an average price of $12.10, for a total value of $872,325.30. Following the completion of the sale, the insider now owns 613,897 shares of the company’s stock, valued at $7,428,153.70. This trade represents a 10.51 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 445,340 shares of company stock valued at $6,182,483. Insiders own 21.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the stock. Silver Oak Securities Incorporated increased its holdings in Red Cat by 502.3% in the 4th quarter. Silver Oak Securities Incorporated now owns 60,755 shares of the company’s stock worth $856,000 after acquiring an additional 50,668 shares in the last quarter. N.E.W. Advisory Services LLC bought a new stake in shares of Red Cat during the 4th quarter valued at $423,000. Centiva Capital LP purchased a new position in shares of Red Cat during the 3rd quarter valued at $207,000. Wolverine Trading LLC bought a new position in Red Cat in the 3rd quarter worth $233,000. Finally, Corsair Capital Management L.P. purchased a new stake in Red Cat in the 3rd quarter worth $308,000. Institutional investors 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.