Shares of the Red Cat Holdings, Inc. (RCAT) stock were popping high in the premarket trading session today on December 22, 2021. RCAT stock price saw a surge of 33.33% to reach $2.44 a share at the time of this writing. The stock was declining in the previous trade and went down by 3.68% at closing. Let’s dig in to understand the current bullish sentiment.
What’s Happening?
Recently Red Cat Holdings has announced that United States Customs and Border Protection has awarded Teal Drones a firm-fixed-price, multiple-award blanket purchase agreement (BPA) as one of the five contractors. For those who do not know about Teal Drones, it is the subsidiary of Red Cat Holdings, Inc. Investors after hearing this news responded positively to the RCAT stock which led to the increase in the per-share price in today’s premarket. BPA contains a five-year ordering period and has an estimated value of $90 million. In connection with BPA, the Department of Homeland Security will place the orders for unmanned aircraft systems (UAS).
This award is of significant importance for the entire team of Teal Drones. The company is looking forward to fulfilling the demands under this agreement and hopes to have more orders in the future. Red Cat Holdings is confident in offering domestically- sourced drone solutions to both enterprise and government applications.
Financial View of RCAT stock:
Two days ago, RCAT announced fiscal second-quarter 2022 financial results according to which
- The company generated $1.9 million in revenue in the quarter ended October 31, 2021. This represents a huge increase of 300% as compared to $428,000 in the same quarter of last year. The significant improvement in the revenue is a positive sign for the shareholders of the RCAT stock.
- Adjusted net loss of the RCAT was approximately $3 million in the reported quarter as compared to $640,000 in the same quarter of last year.
- Red Cat Holdings ended the quarter with $60 million in cash and investments.
Recent Developments of RCAT stock:
Red Cat completed the acquisition of Teal Drones which recently opened the new manufacturing facility in Salt Lake City, Utah. Moreover, Skypersonic has contracted with NASA which will have a positive long-term effect on RCAT stock. The company has shown well progress in its revenue as it grew 336% year over year and 33% quarter over quarter.
Wrap Up:
The blanket purchase agreement which Teal Drones has been awarded will greatly contribute to the forward-going success of the company. In a nutshell, RCAT stock can be a good bet for investors in the long run.
