Insider Selling: Red Cat (NASDAQ:RCAT) CEO Sells $676,500.00 in Stock

Red Cat Holdings, Inc. (NASDAQ:RCAT) CEO Jeffrey Thompson sold 150,000 shares of the business’s stock in a transaction dated Thursday, October 15th. The shares were sold at an average price of $4.51, for a total value of $676,500.00. Following the completion of 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Red Cat Stock Performance

RCAT stock opened at $4.58 on Thursday. The stock’s 50 day simple moving average is $7.42 and its 200 day simple moving average is $9.45. Red Cat Holdings, Inc. has a fifty-two week low of $4.41 and a fifty-two week high of $18.78. The company has a market cap of $562.15 million, a P/E ratio of -5.65 and a beta of 1.51.

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

Hedge Funds Weigh In On Red Cat

A number of hedge funds have recently added to or reduced their stakes in RCAT. Sei Investments Co. purchased a new position in shares of Red Cat during the first quarter valued at approximately $2,328,000. BlackRock Inc. bought a new stake in Red Cat during the second quarter worth $119,610,000. Janus Henderson Group PLC raised its position in Red Cat by 733.7% in the 1st quarter. Janus Henderson Group PLC now owns 392,808 shares of the company’s stock valued at $5,141,000 after buying an additional 345,693 shares during the last quarter. Van ECK Associates Corp purchased a new stake in Red Cat in the 2nd quarter valued at $27,193,000. Finally, Deutsche Bank AG purchased a new stake in Red Cat in the 2nd quarter valued at $1,270,000. Institutional investors and hedge funds own 37.97% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on RCAT shares. HC Wainwright reiterated a “buy” rating and issued a $20.00 target price on shares of Red Cat in a report on Friday, August 7th. Northland Securities set a $13.00 price target on shares of Red Cat in a research note on Thursday, September 17th. Weiss Ratings restated a “sell (d-)” rating on shares of Red Cat in a research note on Thursday, October 15th. Wall Street Zen downgraded shares of Red Cat from a “sell” rating to a “strong sell” rating in a report on Saturday, July 18th. Finally, Needham & Company LLC reaffirmed a “buy” rating and issued a $15.00 price objective on shares of Red Cat in a research note on Tuesday. Two investment analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Red Cat has a consensus rating of “Moderate Buy” and an average target price of $16.71.

About Red Cat

Red Cat Holdings, Inc is a drone technology company that develops and provides unmanned aircraft systems, software, and related services for defense, public safety, and commercial applications. Its solutions are designed to support intelligence, surveillance, reconnaissance, and situational-awareness missions in demanding operating environments.

Through its Teal Drones subsidiary, Red Cat offers small unmanned aircraft systems such as the Teal 2, a compact drone designed for nighttime operations and short-range reconnaissance.