Why Red Cat Holdings Stock Crushed it Today
Key Points
The drone specialist made two changes to its management team.
It now has a new CFO and COO.
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Drone company Red Cat's (NASDAQ: RCAT) stock imitated one of its machines and flew well higher on Hump Day. Following news of two C-suite modifications, investors eagerly snapped up Red Cat's shares, driving the stock to a nearly 9% price gain on the day.
Managerial moves
Just after the market close on Tuesday, Red Cat announced a pair of changes to its top management team.
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Image source: Getty Images.
The first is the promotion of now ex-CFO Christian Ericson to COO. His boss, CEO Jeff Thompson, was quoted describing him as "an outstanding financial leader whose experience, strategic insight and track record of value creation will be instrumental in this new role."
Ericson joined Red Cat in March as CFO.
The second is Ericson's replacement, Christian Morrison. He comes to Red Cat from audio hardware company Skullcandy, where he served in a variety of roles -- including interim CFO -- for around ten years in two separate stints.
A nimble feline
While it's too early to judge whether Ericson and Morrison will be effective in their new roles, it's always encouraging when a company manages a smooth leadership transition or two -- as seems to be the case with the Red Cat moves.
We shouldn't, of course, buy or sell any stock purely on that basis, but Red Cat has numerous advantages as a business. Primarily, it's in a segment that's hot and likely to remain that way, as drones are not only becoming a staple asset in combat but also have numerous uses in the civilian world.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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