Red Cat CEO Jeffrey Thompson Sells 150,000 Shares for $1.6 Million Under 10b5-1 Plan
Updated
Updated · Yahoo Finance · Aug 23
Red Cat CEO Jeffrey Thompson Sells 150,000 Shares for $1.6 Million Under 10b5-1 Plan
2 articles · Updated · Yahoo Finance · Aug 23
Summary
An Aug. 17 SEC filing showed Red Cat CEO Jeffrey Thompson sold about 150,000 shares at a weighted average $10.45, generating roughly $1.6 million.
The sale was executed under a prearranged Rule 10b5-1 trading plan, a structure insiders use to schedule stock sales and reduce concerns about trading on non-public information.
Thompson still directly holds 12,612,202 shares after the transaction, a stake worth about $131.7 million at Aug. 17's close, with company insiders owning roughly 8% overall.
The disposal came after Red Cat shares returned about 24% over the prior 12 months, even as the drone maker reported trailing-12-month revenue of $53.0 million and a net loss of $85.3 million.
With Red Cat's revenue surging but losses mounting, does the CEO's million-dollar stock sale signal hidden doubts about sustaining its massive valuation?
Can Red Cat's new Hellcat drone secure the Pentagon's billion-dollar contract before the company's aggressive cash burn catches up with its soaring stock?