Red Cat (NASDAQ:RCAT) Director Sells $584,650.00 in Stock

Red Cat Holdings, Inc. (NASDAQ:RCAT) Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the firm’s stock in a transaction on Tuesday, August 11th. The shares were 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 in the company, valued at approximately $5,207,360.62. This trade represents a 10.09% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link.

Red Cat Stock Performance

Shares of NASDAQ:RCAT opened at $11.13 on Friday. 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. The firm has a market capitalization of $1.37 billion, a PE ratio of -13.74 and a beta of 1.31.

Red Cat (NASDAQ:RCAT) last released its earnings results on Thursday, August 6th. The company reported ($0.26) EPS 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 during the quarter, compared to the consensus estimate 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.

Key Headlines Impacting Red Cat

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 Analysts Forecast Growth

A number of equities analysts recently weighed in on the company. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a report on Friday, July 17th. 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. 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. Wall Street Zen downgraded 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 shares of Red Cat to a “strong-buy” rating in a report on Wednesday, April 29th. Two equities research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Buy” and a consensus target price of $20.40.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of RCAT. Arizona State Retirement System increased its holdings in shares of 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 period. CoreCap Advisors LLC boosted its holdings in Red Cat by 13.8% during the 2nd 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 period. Mitsubishi UFJ Asset Management Co. Ltd. grew its position in Red Cat by 0.7% during the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 167,084 shares of the company’s stock worth $1,325,000 after acquiring an additional 1,147 shares during the last quarter. Advisory Services Network LLC grew its position in Red Cat by 5.3% during the 3rd quarter. Advisory Services Network LLC now owns 30,200 shares of the company’s stock worth $313,000 after acquiring an additional 1,507 shares during the last quarter. Finally, Western Wealth Management LLC grew its position in Red Cat by 4.5% during the 1st quarter. Western Wealth Management LLC now owns 36,722 shares of the company’s stock worth $481,000 after acquiring an additional 1,570 shares during the last quarter. 37.97% of the stock is owned by institutional investors.

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.