Red Cat (NASDAQ:RCAT) Sees Strong Trading Volume - Still a Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) shares saw unusually-high trading volume on Friday . Approximately 5,138,942 shares traded hands during trading, an increase of 1% from the previous session's volume of 5,096,282 shares.The stock last traded at $8.56 and had previously closed at $8.75.

Analyst Upgrades and Downgrades

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

Red Cat Stock Down 4.7%

The firm's 50 day simple moving average is $6.34 and its 200 day simple moving average is $7.77. The company has a market cap of $758.23 million, a price-to-earnings ratio of -15.44 and a beta of 1.40. The company has a quick ratio of 0.60, a current ratio of 1.43 and a debt-to-equity ratio of 0.30.

Red Cat (NASDAQ:RCAT - Get Free Report) last announced its quarterly earnings results on Wednesday, May 14th. The company reported ($0.27) EPS for the quarter, missing the consensus estimate of ($0.10) by ($0.17). Red Cat had a negative net margin of 232.62% and a negative return on equity of 96.00%. Sell-side analysts anticipate that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in RCAT. Gladstone Institutional Advisory LLC increased its stake in shares of Red Cat by 34.0% during the fourth quarter. Gladstone Institutional Advisory LLC now owns 13,400 shares of the company's stock valued at $172,000 after acquiring an additional 3,400 shares during the period. AlphaCentric Advisors LLC acquired a new position in shares of Red Cat during the fourth quarter valued at approximately $353,000. Atria Wealth Solutions Inc. acquired a new position in shares of Red Cat during the fourth quarter valued at approximately $134,000. Cable Hill Partners LLC acquired a new position in shares of Red Cat during the fourth quarter valued at approximately $257,000. Finally, Verus Capital Partners LLC acquired a new position in shares of Red Cat during the fourth quarter valued at approximately $181,000. Institutional investors and hedge funds 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.