Red Cat Holdings CEO Thompson sells $676,500 of common stock

Jeffrey M. Thompson, CEO of Red Cat Holdings, Inc., sold 150,000 shares of the company's common stock on October 15, 2026, for a total of $676,500. The shares were traded at an average price of $4.51, with individual sale prices between $4.45 and $4.61. The dispositions were conducted according to a pre-approved trading plan, adopted by Mr. Thompson on March 31, 2026.

Red Cat's stock price has been trading close to its 52-week low of $4.41, reflecting a decline of approximately 60% over the past year. Despite the recent drop, InvestingPro analysts consider the stock to be potentially undervalued, with its current price falling below the platform's Fair Value estimate. The sale resulted in Mr. Thompson personally owning 11,562,202 shares of the company's common stock.

Meanwhile, Red Cat Holdings reported its second-quarter 2026 financial results, showing a wider-than-anticipated loss and revenue that fell short of Wall Street's expectations. The company's adjusted loss per share was $0.26, compared to the estimated $0.20 loss, and its revenue was $20.2 million, below the forecasted $22.78 million.

However, the company's sales increased more than fivefold compared to the previous year, indicating robust demand for its defense products. Analysts covering Red Cat include Evercore ISI, which upgraded the stock to an outperform rating with a $15 price target, and Piper Sandler, which initiated coverage with a neutral rating and a $9 price target.

Moreover, Red Cat's Black Widow product was selected by the U.S. Army for its Short Range Reconnaissance program, with deliveries set to begin in fiscal year 2025. Additionally, President Donald Trump imposed tariffs on drones, impacting several companies in the sector, including Red Cat Holdings. Lastly, Red Cat Holdings received recognition in the Drone Dominance Gauntlet II awards, along with eight other companies, including Perennial Autonomy, in various mission categories.