Insider Selling: Red Cat (NASDAQ:RCAT) Director Sells 20,000 Shares of Stock

Key Points

• Red Cat director Christopher Moe sold 20,000 shares at an average price of $10.51, generating $210,200 and reducing his ownership by 9.07% to 200,502 shares.
• RCAT shares recently traded around $10.23, while the company reported a quarterly loss of $0.26 per share and revenue of $20.2 million, missing analyst expectations for both earnings and revenue.
• Despite the weak results and ongoing losses, analysts maintain a consensus “Buy” rating with an average price target of $20.40, well above the recent share price.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) Director Christopher Moe sold 20,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total value of $210,200.00. Following the completion of the sale, the director owned 200,502 shares in the company, valued at approximately $2,107,276.02. This represents a 9.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Red Cat Stock Performance

Shares of RCAT stock traded down $0.09 during midday trading on Thursday, reaching $10.23. 8,020,427 shares of the company were exchanged, compared to its average volume of 9,079,188. The company's 50 day moving average price is $9.55 and its two-hundred day moving average price is $11.66. The company has a market cap of $1.26 billion, a P/E ratio of -12.63 and a beta of 1.31. 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 released its earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share for the quarter, missing analysts' consensus estimates of ($0.21) by ($0.05). Red Cat had a negative return on equity of 39.64% and a negative net margin of 136.26%.The firm had revenue of $20.20 million during the quarter, compared to analyst estimates of $22.65 million. As a group, sell-side analysts predict that Red Cat Holdings, Inc. will post -0.78 earnings per share for the current year.

Wall Street Analysts Forecast Growth

RCAT has been the subject of several research reports. UBS Group assumed coverage on Red Cat in a research note on Wednesday, May 27th. They set a "buy" rating for the company. Wall Street Zen lowered shares of Red Cat from a "sell" rating to a "strong sell" rating in a research note on Saturday, July 18th. Needham & Company LLC decreased their price objective on shares of Red Cat from $20.00 to $15.00 and set a "buy" rating for the company in a research note on Friday, August 7th. Roth Capital assumed coverage on shares of Red Cat in a research note on Monday, June 1st. They set a "buy" rating and a $25.00 target price on the stock. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Red Cat in a research note on Friday, July 17th. Two analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Buy" and an average target price of $20.40.

Institutional Trading of Red Cat

A number of hedge funds have recently made changes to their positions in RCAT. Arizona State Retirement System increased its holdings in Red Cat by 3.0% in the fourth quarter. Arizona State Retirement System now owns 29,311 shares of the company's stock worth $232,000 after buying an additional 855 shares during the last quarter. CoreCap Advisors LLC lifted its stake in Red Cat by 13.8% in the second quarter. CoreCap Advisors LLC now owns 9,039 shares of the company's stock valued at $96,000 after acquiring an additional 1,095 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. lifted its stake in Red Cat by 0.7% in the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 167,084 shares of the company's stock valued at $1,325,000 after acquiring an additional 1,147 shares during the last quarter. Advisory Services Network LLC boosted its holdings in Red Cat by 5.3% in the third quarter. Advisory Services Network LLC now owns 30,200 shares of the company's stock worth $313,000 after purchasing an additional 1,507 shares in the last quarter. Finally, Western Wealth Management LLC grew its holdings in Red Cat by 4.5% during the first quarter. Western Wealth Management LLC now owns 36,722 shares of the company's stock valued at $481,000 after purchasing an additional 1,570 shares during the last quarter. 37.97% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting 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.

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