Red Cat (NASDAQ:RCAT) Director Nicholas Reyland Liuzza, Jr. Sells 55,000 Shares of Stock

Red Cat Holdings, Inc. (NASDAQ:RCAT) Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the business’s stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $10.63, for a total transaction of $584,650.00. Following the sale, the director owned 489,874 shares of the company’s stock, valued at $5,207,360.62. This represents a 10.09% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink.

Red Cat Price Performance

Shares of Red Cat stock opened at $10.23 on Friday. The stock has a market capitalization of $1.26 billion, a price-to-earnings 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. The firm’s fifty day simple moving average is $9.55 and its 200-day simple moving average is $11.66.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings results on Thursday, August 6th. The company reported ($0.26) EPS for the quarter, missing the consensus estimate 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 company had revenue of $20.20 million for the quarter, compared to analysts’ expectations of $22.65 million. Analysts anticipate that Red Cat Holdings, Inc. will post -0.78 earnings per share for the current year.

Key Red Cat News

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 move is intended to improve coordination, manufacturing scale and execution as demand from U.S. and allied defense customers grows. Red Cat Promotes Mitch McDonald to Divisional CEO of its UAS Operations
• Neutral Sentiment: Weakness in fellow drone maker Ondas Holdings after its quarterly results could be weighing on sentiment across the drone sector, although the companies’ operating results differ. Ondas also won a multimillion-dollar Israeli defense tender, highlighting continued defense-drone demand but providing no direct revenue benefit to RCAT. Ondas Drops 7% After Earnings
• Negative Sentiment: Director Christopher R. Moe reported sales totaling 30,000 shares at average prices of $10.51 and $10.04. The transactions reduced his direct ownership by roughly 13.4% across the reported sales and may raise caution about insider conviction.
• Negative Sentiment: Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares at an average price of $10.63, reducing his position by approximately 10%. The sales add to recent insider-selling activity and increase near-term supply concerns.
• Negative Sentiment: Analysts lowered Red Cat’s projected third-quarter EPS, signaling expectations for greater losses or weaker profitability. This follows the company’s latest reported quarter, in which it missed consensus estimates on both EPS and revenue, while continuing to operate with substantial negative margins.

Analysts Set New Price Targets

RCAT has been the subject of a number of recent analyst reports. Clear Str upgraded shares of Red Cat to a “strong-buy” rating in a report on Wednesday, April 29th. Roth Capital began coverage on Red Cat in a report on Monday, June 1st. They set a “buy” rating and a $25.00 target price on the stock. LADENBURG THALM/SH SH upgraded shares of Red Cat to a “strong-buy” rating in a report on Wednesday, May 6th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Red Cat in a research report on Friday, July 17th. Finally, Needham & Company LLC reduced their price target on shares of Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a research report on Friday, August 7th. Two research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Buy” and a consensus price target of $20.40.

Institutional Trading of Red Cat

Several institutional investors and hedge funds have recently added to or reduced their stakes in RCAT. BlackRock Inc. acquired a new position in Red Cat in the 2nd quarter worth approximately $119,610,000. State Street Corp lifted its stake in shares of Red Cat by 136.4% in the fourth quarter. State Street Corp now owns 6,612,153 shares of the company’s stock worth $52,434,000 after buying an additional 3,815,310 shares during the last quarter. Vanguard Group Inc. boosted its holdings in Red Cat by 43.9% during the third quarter. Vanguard Group Inc. now owns 5,506,377 shares of the company’s stock valued at $56,991,000 after acquiring an additional 1,680,929 shares during the period. Davidson Kempner Capital Management LP bought a new position in Red Cat during the third quarter worth $17,286,000. Finally, Renaissance Technologies LLC bought a new position in Red Cat during the first quarter valued at about $18,533,000. 37.97% of the stock is owned by institutional investors and hedge funds.

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.