Red Cat (NASDAQ:RCAT) Stock Breaks Out On High Volume: A Good Buy Now?
Shares of technology solutions provider in the drone industry, Red Cat (NASDAQ:RCAT) surged on 13th July as the company confirmed on acquisition of Teal Drones for an undisclosed amount.
The acquisition of a commercial and government unmanned aerial technology company, will help Red Cat foray directly into space. It will also facilitate expansion of the firm’s drone services. Skypersonic, its remote inspection firm and Dronebox, its cloud-based flight intelligence analytics platform are two other interesting companies under its wings.
CEO of RedCat Jeff Thompson said that the update is helping the stock surge. Thompson added that adding Teal to the company’s pipeline of companies will help in expanding deeper into both the government and enterprise spaces.
The CEO was also of the view that Teal’s Golden Eagle drone platform as well as existing access to the Department of Defensein addition to Red Cat’s experience should position the joint group for super success with the growth of the industry.
The update is resulting in higher volume trade with more than 49 million shares having changed hands. This is a significant surge as compared to the firm’s daily average trading volume at 659,000 shares as investors lap up Red Cat for potential flight soon.
Market Reaction:
On Tuesday, RCAT stock soared 60.27% at $4.76 with more than 76.55 million shares, compared to its average volume of 670k shares. The stock had moved within a range of $2.8500 – 6.0600 after opening the trade at $3.03 Over the past 52-week, the stock has been trading within a range of $0.5400 – 7.7500.
