Stocks rallying on the back of no material news are not an uncommon occurrence and one of the stocks to have experienced such a rally in recent days is that of Red Cat Holdings Inc (NASDAQ:RCAT). On Tuesday, the Red Cat stock jumped by as much as 37% despite there being no news about the company and emerged as a notable gainer.
However, in this situation, it might be worthwhile for investors to perhaps consider taking a look at a development from last week. Last week the company announced that it signed up Joseph Hernon on a one year executive employment agreement. As part of the agreement, Hernon is going to serve as chief financial officer at Red Cat.
However, in this regard, it is also necessary to point out that the agreement is going to be renewed for one year terms unless any of the two parties decided to notify the other about the desire to terminate the agreement three months in advance.
This was a significant announcement from the company and one that might have been tracked closely by investors. However, it is now going to be interesting to see if any fresh news emerged regarding the company this week.
Market Reaction:
On Tuesday, RCAT stock soared 37.40% at $3.49 with more than 18.36 million shares, compared to its average volume of 322k shares. The stock had moved within a range of $2.4600 – 3.7000 after opening the trade at $2.57. Over the past 52-week, the stock has been trading within a range of $0.5400 – 7.7500.
 Stock Soars On High Volume: But Why?){kind=link}