Insider Selling: Red Cat (NASDAQ:RCAT) Director Sells $210,200.00 in Stock

Red Cat Holdings, Inc. (NASDAQ:RCAT) Director Christopher Moe sold 20,000 shares of Red Cat stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $10.51, for a total transaction of $210,200.00. Following the sale, the director directly owned 200,502 shares of the company’s stock, valued at $2,107,276.02. This represents a 9.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink.

Red Cat Stock Performance

Shares of NASDAQ:RCAT opened at $11.13 on Friday. The firm has a market capitalization of $1.37 billion, a PE ratio of -13.74 and a beta of 1.31. Red Cat Holdings, Inc. has a 52-week low of $5.77 and a 52-week high of $18.78. The firm has a fifty day moving average of $9.51 and a 200 day moving average of $11.66.

Red Cat (NASDAQ:RCAT) last released its quarterly 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 net margin of 136.26% and a negative return on equity of 32.25%. The firm had revenue of $20.20 million for the quarter, compared to analysts’ expectations of $22.65 million. On average, sell-side analysts forecast that Red Cat Holdings, Inc. will post -0.78 EPS for the current fiscal year.

Hedge Funds Weigh In On Red Cat

Hedge funds and other institutional investors have recently modified their holdings of the company. Allworth Financial LP bought a new stake in shares of Red Cat in the second quarter worth about $28,000. IFP Advisors Inc increased its holdings in Red Cat by 181.1% during the 3rd quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock valued at $28,000 after purchasing an additional 1,720 shares during the period. Fifth Third Bancorp bought a new position in Red Cat during the 1st quarter valued at approximately $33,000. California State Teachers Retirement System bought a new position in Red Cat during the 2nd quarter valued at approximately $34,000. Finally, NFSG Corp lifted its holdings in Red Cat by 200.0% in the 1st quarter. NFSG Corp now owns 3,000 shares of the company’s stock worth $39,000 after buying an additional 2,000 shares during the period. 37.97% of the stock is owned by institutional investors.

Red Cat News Roundup

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

• Positive Sentiment: Red Cat is gaining alongside other domestic drone companies after reports that President Trump plans a 100% tariff on drones. Investors appear to view the measure as a potential boost for U.S.-based suppliers serving defense and government customers. Unusual Machines Soars, Red Cat Climbs and Ondas Gains on Trump’s Drone Tariff
• Positive Sentiment: The company promoted Mitch McDonald to divisional CEO of its unmanned aerial systems operations, bringing Teal Drones and FlightWave Aerospace under unified leadership. The move is intended to improve coordination, manufacturing scale and execution as defense demand grows. Red Cat Promotes Mitch McDonald to Divisional CEO of its UAS Operations
• Neutral Sentiment: Weakness in drone peer Ondas Holdings after its earnings report may create sector-wide volatility. However, Ondas’ Israeli defense tender win reinforces investor interest in the broader autonomous-defense market without providing direct revenue to RCAT. Ondas Drops After Earnings
• Negative Sentiment: Recent SEC-reported insider sales could temper enthusiasm. Director Christopher R. Moe sold a combined 30,000 shares, while Director Nicholas Reyland Liuzza Jr. sold 55,000 shares. The transactions reduced their reported holdings and may raise concerns about insider conviction, even though both directors retained substantial positions. Red Cat Director Stock Sale
• Negative Sentiment: Analysts reportedly reduced their third-quarter EPS expectations. That follows Red Cat’s latest quarterly miss, when it reported a loss of $0.26 per share versus an expected loss of $0.21 and revenue of $20.2 million versus $22.65 million expected. The company remains unprofitable, making execution and future defense orders important to the valuation.

Wall Street Analyst Weigh In

Several analysts have issued reports on RCAT shares. HC Wainwright reaffirmed a “buy” rating and issued a $20.00 target price on shares of Red Cat in a research note on Friday, August 7th. LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a research note on Wednesday, May 6th. UBS Group assumed coverage on shares of Red Cat in a report on Wednesday, May 27th. They issued a “buy” rating for the company. Wall Street Zen cut shares of Red Cat from a “sell” rating to a “strong sell” rating in a research note on Saturday, July 18th. Finally, Clear Str upgraded Red Cat to a “strong-buy” rating in a report on Wednesday, April 29th. Two analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Buy” and an average price target of $20.40.

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.