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

Key Points

• CEO Jeffrey Thompson sold 150,000 Red Cat shares at an average price of $4.51, generating $676,500. The transaction was conducted under a pre-arranged Rule 10b5-1 trading plan, leaving him with 11.56 million shares.
• RCAT shares fell 0.8% to $4.68, near the company’s one-year low of $4.41 and well below its 50-day and 200-day moving averages. Red Cat also reported a quarterly EPS and revenue miss, alongside deeply negative profitability metrics.
• Analyst sentiment remains mixed: the stock has a consensus “Moderate Buy” rating and a $16.71 target price, but recent actions included a target-price reduction and a downgrade to “strong sell.”

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) CEO Jeffrey Thompson sold 150,000 shares of the stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $4.51, for a total transaction of $676,500.00. Following the sale, the chief executive officer directly owned 11,562,202 shares of the company's stock, valued at $52,145,531.02. The trade was a 1.28% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Red Cat Stock Down 0.8%

Shares of RCAT traded down $0.04 during mid-day trading on Monday, hitting $4.68. 6,127,022 shares of the company's stock traded hands, compared to its average volume of 12,516,161. The firm has a market capitalization of $574.42 million, a P/E ratio of -5.78 and a beta of 1.51. The business's 50-day moving average price is $7.77 and its 200-day moving average price is $9.62. Red Cat Holdings, Inc. has a 1 year low of $4.41 and a 1 year high of $18.78.

Red Cat (NASDAQ:RCAT - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported ($0.26) earnings per share for the quarter, missing the consensus estimate of ($0.21) by ($0.05). The firm had revenue of $20.20 million for the quarter, compared to the consensus estimate of $22.65 million. Red Cat had a negative net margin of 136.26% and a negative return on equity of 32.25%. Sell-side analysts anticipate that Red Cat Holdings, Inc. will post -0.79 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. Northland Securities set a $13.00 price objective on shares of Red Cat in a report on Thursday, September 17th. Needham & Company LLC dropped their target price on shares of Red Cat from $20.00 to $15.00 and set a "buy" rating on the stock in a report on Friday, August 7th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Red Cat in a research report on Thursday. Piper Sandler initiated coverage on shares of Red Cat in a research note on Wednesday, September 2nd. They set a "neutral" rating and a $9.00 target price for the company. Finally, Zacks Research cut Red Cat from a "hold" rating to a "strong sell" rating in a report on Monday, October 12th. Two analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $16.71.

Hedge Funds Weigh In On Red Cat

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

About Red Cat

Red Cat Holdings, Inc is a drone technology company that develops and supplies unmanned aircraft systems for defense, government, public safety and commercial applications. The company focuses on autonomous and remotely operated aerial systems designed to support intelligence, surveillance and reconnaissance missions, including operations in contested or GPS-denied environments.

Red Cat's product portfolio includes the Teal 2 small unmanned aircraft system, a compact drone designed for close-range reconnaissance and situational awareness.

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