Red Cat Holdings chairman & CEO sells $1.16m in stock

Red Cat Holdings' CEO sold a significant portion of the company's stock worth $1.16 million on September 15, 2026. Jeffrey M. Thompson, the Chairman and CEO, executed the sale under a pre-determined trading plan, with individual shares going for prices between $7.64 and $7.89. Despite a recent 11% drop in stock price and an 58% decline over the last six months, the stock currently trades at $7.09, which seems slightly undervalued according to a Pro Research Analysis.

Thompson also settled a contract related to a forward agreement, delivering 750,000 shares at a pre-agreed price of $9.14 per share. He had received a $6,565,293.75 payment for this contract. Another forward contract, valid until January 2027, settled on the same day with a $17,136,900 payment. This news comes at a time when Red Cat Holdings reported financial results for Q2 2026 that fell short of expectations, though revenue rose 520% year-over-year.

Industry players have also been bullish on the company, with ratings from Piper Sandler and Evercore ISI, and the U.S. Army's selection of Red Cat's Black Widow for a major program. Recent tariffs on drones and related components have affected several U.S. drone stocks, including Red Cat.