Insider Selling: Red Cat (NASDAQ:RCAT) Director Sells $100,400.00 in Stock

Key Points

• Red Cat director Christopher Moe sold 10,000 shares at an average price of $10.04, generating $100,400 and reducing his ownership by 4.34% to 220,502 shares.
• RCAT recently traded near $10.23, while the company reported a quarterly EPS loss of $0.26 and revenue of $20.2 million, missing analyst estimates for both measures.
• Analysts maintain a consensus “Buy” rating with an average price target of $20.40, although targets have been lowered by some firms and the company continues to report substantial losses.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) Director Christopher Moe sold 10,000 shares of the company's stock in a transaction on Monday, August 25th. The shares were sold at an average price of $10.04, for a total transaction of $100,400.00. Following the transaction, the director owned 220,502 shares of the company's stock, valued at approximately $2,213,840.08. The trade was a 4.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link.

Red Cat Trading Down 0.9%

RCAT stock traded down $0.09 during trading on Thursday, reaching $10.23. 8,020,427 shares of the stock were exchanged, compared to its average volume of 9,079,188. The stock has a 50 day simple moving average of $9.55 and a 200-day simple moving average of $11.66. Red Cat Holdings, Inc. has a twelve month low of $5.77 and a twelve month high of $18.78. The company has a market capitalization of $1.26 billion, a P/E ratio of -12.63 and a beta of 1.31.

Red Cat (NASDAQ:RCAT - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 39.64%. Equities analysts predict that Red Cat Holdings, Inc. will post -0.78 EPS for the current year.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on RCAT shares. HC Wainwright reaffirmed a "buy" rating and set a $20.00 price objective on shares of Red Cat in a report on Friday, August 7th. Wall Street Zen cut Red Cat from a "sell" rating to a "strong sell" rating in a research report on Saturday, July 18th. Roth Capital began coverage on shares of Red Cat in a research note on Monday, June 1st. They issued a "buy" rating and a $25.00 target price on the stock. Needham & Company LLC lowered 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. Finally, UBS Group initiated coverage on shares of Red Cat in a report on Wednesday, May 27th. They set a "buy" rating for the company. Two research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Buy" and an average price target of $20.40.

Institutional Trading of Red Cat

A number of institutional investors have recently bought and sold shares of the business. Sei Investments Co. bought a new position in Red Cat in the first quarter valued at approximately $2,328,000. EVR Research LP bought a new stake in Red Cat during the fourth quarter worth about $1,705,000. Janus Henderson Group PLC increased its position in shares of Red Cat by 733.7% during the 1st quarter. Janus Henderson Group PLC now owns 392,808 shares of the company's stock worth $5,141,000 after purchasing an additional 345,693 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its stake in shares of Red Cat by 1,825.1% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 54,152 shares of the company's stock worth $429,000 after purchasing an additional 51,339 shares in the last quarter. Finally, Empowered Funds LLC bought a new position in shares of Red Cat in the first quarter valued at $2,232,000. Institutional investors and hedge funds own 37.97% of the company's stock.

Trending Headlines about Red Cat

Here are the key news stories impacting Red Cat this week:

• Positive Sentiment: Red Cat promoted Mitch McDonald to divisional CEO of its UAS operations, placing Teal Drones and FlightWave Aerospace under unified leadership. The company said the move is intended to improve coordination, scale manufacturing and meet rising demand from U.S. and allied defense customers. Red Cat Promotes Mitch McDonald to Divisional CEO of its UAS Operations
• Positive Sentiment: Red Cat’s reported analyst price targets remain well above the recent trading level, with a median target of $20 and individual targets ranging from $20 to $25. However, these targets may not reflect the latest earnings revisions. Research Analysts Set Expectations for Red Cat Q3 Earnings
• Neutral Sentiment: Unusually high options activity indicates increased trading interest and potentially greater short-term volatility in RCAT, but the available report does not identify whether bullish or bearish positions dominated. Red Cat Sees Unusually Large Options Volume
• Negative Sentiment: Director Nicholas Reyland Liuzza Jr. sold 55,000 RCAT shares for approximately $584,650, reducing his direct ownership by about 10%. He still owns 489,874 shares, but the transaction adds to concerns because recent insider activity has been weighted toward selling rather than buying. SEC Insider Ownership Filing
• Negative Sentiment: Northland Securities lowered its forecast for Red Cat’s third-quarter EPS, reinforcing concerns about the company’s continuing losses and execution against growth expectations. Red Cat previously missed quarterly revenue and EPS estimates, making forecast reductions particularly relevant to valuation. Red Cat Q3 EPS Forecast Decreased by Northland Securities
• Negative Sentiment: Drone peer Ondas Holdings fell sharply after releasing earnings, creating potential spillover pressure across the sector despite Ondas separately winning a multi-million-dollar Israeli defense tender. The episode highlights investor sensitivity to near-term financial results among drone companies. Ondas Drops After Earnings

About Red Cat

Red Cat Holdings, Inc NASDAQ: RCAT is a technology holding company that develops and delivers advanced robotics, autonomy, and sensing solutions for defense, national security, public safety and commercial customers. Headquartered in American Fork, Utah, the company brings together a portfolio of specialized operating businesses focused on unmanned aerial systems (UAS), mission management software, precision mapping sensors and engineering services.

Through its UAS segment, Red Cat designs and manufactures small to medium-sized fixed-wing and vertical-takeoff drones that support intelligence, surveillance and reconnaissance (ISR) missions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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