Why Red Cat Holdings (RCAT) stocks jumped Wednesday?

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Highlights

  • Red Cat Holdings, Inc. (NASDAQ: RCAT) reported its second-quarter results on Tuesday.

  • Red Cat revenue surged more than 300% in the second quarter of fiscal 2022.

  • The technology company bags a five-year US$90-million government contract this week.

Shares of Red Cat Holdings, Inc. (Nasdaq: RCAT) were trending on Wall Street Wednesday, a day after reporting its quarterly results. On Wednesday, the technology company announced a five-year customs and border protection contract worth US$90 million.

The San Juan, Puerto Rico-headquartered company makes security products, including drones, and supply them to businesses, the military, and other clients.

As part of the blanket purchase agreement (BPA), Red Cat subsidiary Teal Drones will supply unmanned aircraft systems (UAS) and other customs and border patrol equipment.

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The Department of Homeland Security is expected to place more orders for unmanned aircraft, which will be used for supplemental airborne reconnaissance, surveillance, and tracking by field commanders and agents in areas that lack traditional surveillance systems.

Red Cat CEO Jeff Thompson lauded the Teal team for the contract, describing it is as a “milestone achievement”.

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Red Cat Holdings Inc (Nasdaq: RCAT) stock performance and financial highlights

The Red Cat stock was priced at US$2.39 at 8:44 am ET on Dec 22, up 30.60% from its previous close. Its market cap is US$98.23 million, and the EPS is US$-0.54. The stock gained 32.35% YTD.

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The RCAT stock saw the highest price of US$7.46 and the lowest price of US$1.78 in the last 52 weeks. Its trading volume on Dec 21 was 1,094,598.

The company's revenue was around US$1.9 million in Q2, FY22, up 300% from US$428,000 a year ago. Its net loss was US$2.74 million against a loss of US$722,281 in Q2, FY21.

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Bottomline

The technology sector saw rapid growth in 2021. The S&P 500 Information Technology Sector gained 30.25% YTD while increasing 13.74% QTD.


 


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