Jeffrey Thompson Sells 150,000 Shares of Red Cat (NASDAQ:RCAT) Stock

Key Points

• CEO Jeffrey Thompson sold 150,000 Red Cat shares at an average price of $7.74, generating $1.16 million. The transaction was made under a pre-arranged Rule 10b5-1 trading plan, leaving him with 11.7 million shares.
• Red Cat’s latest quarterly results missed expectations, with a loss of $0.26 per share versus the consensus estimate of $0.21 and revenue of $20.2 million versus $22.65 million expected.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and average price target of $16.71, although shares have declined from a 12-month high of $18.78 and recently traded near $7.09.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) CEO Jeffrey Thompson sold 150,000 shares of the company's stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $7.74, for a total value of $1,161,000.00. Following the completion of the sale, the chief executive officer owned 11,712,202 shares in the company, valued at approximately $90,652,443.48. This represents a 1.26% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Red Cat Stock Performance

Shares of NASDAQ:RCAT remained flat at $7.09 during trading on Thursday. The stock had a trading volume of 11,749,362 shares, compared to its average volume of 6,310,284. The stock has a fifty day moving average of $8.60 and a two-hundred day moving average of $10.93. The company has a market cap of $870.23 million, a PE ratio of -8.75 and a beta of 1.35. Red Cat Holdings, Inc. has a 12-month low of $5.77 and a 12-month high of $18.78.

Red Cat (NASDAQ:RCAT - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported ($0.26) EPS for the quarter, missing analysts' consensus estimates of ($0.21) by ($0.05). The business had revenue of $20.20 million during the quarter, compared to analyst estimates of $22.65 million. Red Cat had a negative net margin of 136.26% and a negative return on equity of 32.25%. Research analysts expect that Red Cat Holdings, Inc. will post -0.77 earnings per share for the current year.

Analyst Upgrades and Downgrades

RCAT has been the subject of a number of research analyst reports. UBS Group began coverage on shares of Red Cat in a research report on Wednesday, May 27th. They set a "buy" rating for the company. Wall Street Zen lowered Red Cat from a "sell" rating to a "strong sell" rating in a research report on Saturday, July 18th. HC Wainwright restated a "buy" rating and set a $20.00 price target on shares of Red Cat in a research note on Friday, August 7th. Piper Sandler began coverage on Red Cat in a research report on Wednesday, September 2nd. They set a "neutral" rating and a $9.00 price target for the company. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Red Cat in a research note on Friday, July 17th. Two equities research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $16.71.

Institutional Investors Weigh In On Red Cat

Several large investors have recently added to or reduced their stakes in RCAT. Fifth Third Bancorp purchased a new position in Red Cat in the 1st quarter valued at approximately $33,000. Allworth Financial LP acquired a new position in shares of Red Cat in the second quarter worth $28,000. NFSG Corp increased its position in shares of Red Cat by 200.0% during the first quarter. NFSG Corp now owns 3,000 shares of the company's stock worth $39,000 after acquiring an additional 2,000 shares during the period. PNC Financial Services Group Inc. increased its position in shares of Red Cat by 294.6% during the first quarter. PNC Financial Services Group Inc. now owns 3,042 shares of the company's stock worth $40,000 after acquiring an additional 2,271 shares during the period. Finally, KBC Group NV acquired a new stake in shares of Red Cat in the first quarter valued at $45,000. 37.97% of the stock is owned by hedge funds and other institutional investors.

About Red Cat

Red Cat Holdings, Inc is a drone technology company that develops and supplies small unmanned aircraft systems for military, government, public safety and commercial applications. Its solutions are designed to support intelligence, surveillance and reconnaissance, situational awareness, and other missions requiring portable and rapidly deployable aerial systems.

Through its Teal Drones business, Red Cat offers the Teal 2 and related Black Widow systems, compact drones designed for defense and public-safety users.

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