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

Red Cat Holdings, Inc. (NASDAQ:RCAT) Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the firm’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 value of $584,650.00. Following the completion of 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 document filed with the SEC, which is available at this link.

Red Cat Trading Up 8.8%

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 1-year low of $5.77 and a 1-year high of $18.78. The business’s 50 day moving average is $9.51 and its 200-day moving average is $11.66.

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

More Red Cat News

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.

Institutional Trading of Red Cat

A number of large investors have recently bought and sold shares of the stock. Jupiter Topco LLC acquired a new position in Red Cat during the second quarter worth $501,000. AWM Investment Company Inc. bought a new position in shares of Red Cat during the second quarter valued at $9,313,000. Legal & General Group Plc bought a new position in shares of Red Cat during the second quarter valued at $1,232,000. The Manufacturers Life Insurance Company acquired a new stake in shares of Red Cat in the 2nd quarter valued at $522,000. Finally, Sanctuary Advisors LLC acquired a new stake in shares of Red Cat in the 2nd quarter valued at $117,000. 37.97% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on RCAT shares. Roth Capital initiated coverage on shares of Red Cat in a research note on Monday, June 1st. They issued a “buy” rating and a $25.00 price objective for the company. Clear Str upgraded shares of Red Cat to a “strong-buy” rating in a research report on Wednesday, April 29th. HC Wainwright reissued a “buy” rating and issued a $20.00 target price on shares of Red Cat in a research note on Friday, August 7th. UBS Group initiated coverage on shares of Red Cat in a research note on Wednesday, May 27th. They issued a “buy” rating on the stock. Finally, LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a research report on Wednesday, May 6th. Two analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Buy” and an average target price 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.