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

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) gapped up before the market opened on Thursday . The stock had previously closed at $6.37, but opened at $7.06. Red Cat shares last traded at $7.05, with a volume of 2,568,538 shares trading hands.

Red Cat Price Performance

The firm has a market cap of $556.14 million, a P/E ratio of -15.15 and a beta of -0.07. The stock’s 50-day simple moving average is $3.31 and its two-hundred day simple moving average is $2.29.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings results on Monday, September 23rd. The company reported ($0.17) EPS for the quarter. The company had revenue of $2.78 million during the quarter. Red Cat had a negative return on equity of 66.19% and a negative net margin of 162.50%. As a group, sell-side analysts expect that Red Cat Holdings, Inc. will post -0.33 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Renaissance Technologies LLC purchased a new stake in Red Cat in the second quarter worth about $267,000. XTX Topco Ltd raised its position in shares of Red Cat by 390.9% in the 2nd quarter. XTX Topco Ltd now owns 58,895 shares of the company’s stock valued at $68,000 after purchasing an additional 46,897 shares during the last quarter. PVG Asset Management Corp purchased a new position in shares of Red Cat in the 2nd quarter valued at approximately $63,000. Sheets Smith Wealth Management purchased a new position in shares of Red Cat in the 3rd quarter valued at approximately $51,000. Finally, United Capital Management of KS Inc. acquired a new position in Red Cat in the 3rd quarter worth approximately $108,000. 37.97% of the stock is currently owned by institutional investors.

Red Cat Company Profile

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.