Red Cat (NASDAQ:RCAT) Shares Gap Up – Time to Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT) gapped up prior to trading on Monday . The stock had previously closed at $5.66, but opened at $5.91. Red Cat shares last traded at $6.18, with a volume of 1,212,047 shares trading hands.

Analysts Set New Price Targets

RCAT has been the topic of several analyst reports. Northland Capmk upgraded Red Cat to a “strong-buy” rating in a research note on Monday, March 10th. Northland Securities initiated coverage on Red Cat in a research note on Tuesday, March 11th. They issued an “outperform” rating and a $13.00 price objective on the stock.

Red Cat Stock 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 company has a market capitalization of $440.93 million, a price-to-earnings ratio of -9.54 and a beta of 1.32. The stock has a 50 day simple moving average of $8.12 and a two-hundred day simple moving average of $6.63.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings results on Monday, December 16th. The company reported ($0.18) earnings per share for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.27). Red Cat had a negative net margin of 232.62% and a negative return on equity of 96.00%. During the same period last year, the firm earned ($0.11) earnings per share. As a group, analysts anticipate that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Insider Buying and Selling at Red Cat

In other Red Cat news, insider George Michael Matus sold 287,113 shares of the firm’s stock in a transaction dated Friday, December 20th. The stock was sold at an average price of $9.94, for a total transaction of $2,853,903.22. Following the transaction, the insider now owns 685,990 shares of the company’s stock, valued at approximately $6,818,740.60. This trade represents a 29.50 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Nicholas Reyland Liuzza, Jr. sold 200,000 shares of the firm’s stock in a transaction dated Monday, December 23rd. The stock was sold at an average price of $10.80, for a total value of $2,160,000.00. Following the transaction, the director now directly owns 481,072 shares in the company, valued at approximately $5,195,577.60. The trade was a 29.37 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,488,827 shares of company stock worth $17,336,227 over the last ninety days. Corporate insiders own 21.50% of the company’s stock.

Hedge Funds Weigh In On Red Cat

Several hedge funds have recently made changes to their positions in the company. Squarepoint Ops LLC grew its holdings in shares of Red Cat by 23.0% during the fourth quarter. Squarepoint Ops LLC now owns 15,496 shares of the company’s stock worth $199,000 after buying an additional 2,902 shares during the last quarter. Two Sigma Advisers LP purchased a new position in shares of Red Cat during the fourth quarter worth about $362,000. Tidal Investments LLC purchased a new position in shares of Red Cat during the fourth quarter worth about $270,000. Nomura Holdings Inc. purchased a new position in shares of Red Cat during the fourth quarter worth about $180,000. Finally, OMERS ADMINISTRATION Corp purchased a new position in shares of Red Cat during the fourth quarter worth about $1,714,000. Hedge funds and other 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.