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 $8.23, but opened at $9.86. Red Cat shares last traded at $9.19, with a volume of 14,888,482 shares trading hands.

Red Cat Trading Down 7.5 %

The firm has a market capitalization of $729.70 million, a PE ratio of -21.02 and a beta of 1.33. The firm has a 50 day simple moving average of $5.55 and a 200 day simple moving average of $3.33.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings data on Monday, December 16th. The company reported ($0.18) EPS for the quarter, missing the consensus estimate of $0.09 by ($0.27). Red Cat had a negative net margin of 162.50% and a negative return on equity of 66.19%. During the same period in the previous year, the firm earned ($0.11) EPS. Research analysts forecast that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current year.

Institutional Investors Weigh In On Red Cat

A number of large investors have recently added to or reduced their stakes in the stock. Sanctuary Advisors LLC bought a new position in shares of Red Cat during the 3rd quarter valued at $25,000. Sheets Smith Wealth Management purchased a new stake in Red Cat during the third quarter valued at $51,000. United Capital Management of KS Inc. bought a new position in Red Cat in the third quarter valued at about $108,000. XTX Topco Ltd boosted its position in Red Cat by 390.9% in the second quarter. XTX Topco Ltd now owns 58,895 shares of the company’s stock worth $68,000 after purchasing an additional 46,897 shares during the last quarter. Finally, Pekin Hardy Strauss Inc. bought a new stake in shares of Red Cat during the 3rd quarter valued at about $138,000. 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.