---
title: "Red Cat's chairman sold at $10.45, then $7.74, and now files to sell at $4.51"
description: "A Form 144 accepted October 15 shows chairman and CEO Jeffrey Thompson proposing a third sale in three months, at less than half his August price, days after Zacks cut the stock to strong sell and four weeks before the earnings report that tests a $150 million to $180 million revenue target."
publisher: "The Inference"
section: "Markets"
published: 2026-10-16T23:15:32.717Z
modified: 2026-10-16T23:15:32.717Z
canonical: https://theinference.org/article/red-cat-s-chairman-sold-at-10-45-then-7-74-and-now-files-to-sell-at-4-51
language: en
keywords: "Insider Sales, Defense, Drones, SEC Filings, Earnings"
---

# Red Cat's chairman sold at $10.45, then $7.74, and now files to sell at $4.51

> A Form 144 accepted October 15 shows chairman and CEO Jeffrey Thompson proposing a third sale in three months, at less than half his August price, days after Zacks cut the stock to strong sell and four weeks before the earnings report that tests a $150 million to $180 million revenue target.

## The notice, three days after the drone show

The SEC accepted [Jeffrey M. Thompson](https://theinference.org/markets/people/jeffrey-m-thompson)'s [Form 144, a notice of a proposed insider sale](https://www.stocktitan.net/sec-filings/RCAT/144-red-cat-holdings-inc-sec-filing-84099f14ec1b.html), on October 15 [1]. Thompson is chairman and chief executive of [Red Cat Holdings](https://theinference.org/markets/companies/red-cat-holdings) (Nasdaq: RCAT), the Utah drone maker, valued at $748.3 million and due to report third-quarter results on November 12 against a 2026 revenue target of $150 million to $180 million it has not cut [2][3]. His notice proposes selling 450,000 shares through Charles Schwab for a stated $2,031,030 [1].

## Three tickets on one notice

The same filing lists two completed sales: [150,000 shares on August 17 for $1,568,190](https://www.aol.com/articles/red-cat-ceo-jeffrey-thompson-004544000.html), at a Form 4 weighted average of $10.45, and 150,000 on September 15 for $1,160,310 [1][2]. Everything runs through a Rule 10b5-1 plan, the pre-committed trading schedule insiders adopt so sales are not reactions to what they know, dated April 1 in the notice; its terms are not disclosed [1]. Director Nicholas Reyland Liuzza sold 65,000 shares for $552,500, and TipRanks reads sentiment across 20 insiders as negative [4].

*Chart: **Thompson's third notice triples the shares for a gross barely above his first** Column chart of gross proceeds from Thompson's three sale notices: $1.57 million for 150,000 shares in August, $1.16 million for 150,000 in September, $2.03 million proposed for 450,000 in October.*

*Gross proceeds stated in Jeffrey M. Thompson's Form 144 notices, USD millions, with shares per notice. August and September sales completed; October 15 is a proposed sale at its stated aggregate value. Source: SEC Form 144, accepted October 15, 2026. [1]*

## A $748 million stock 49 cents above its low

[Red Cat](https://theinference.org/markets/companies/red-cat-holdings) closed at $4.90 on October 15 against a 52-week range of $4.41 to $18.78, after trading near $8.20 the evening it reported June-quarter results in August [3][5]. On October 14 the stock-research firm Zacks [cut it from hold to strong sell](https://www.ad-hoc-news.de/boerse/news/nebenwerte/zacks-downgrades-red-cat-holdings-stock-to-strong-sell/70333292) [3]. That same week, at the Association of the United States Army's annual convention, Red Cat folded its Teal Drones and FlightWave Aerospace units into one brand, Red Cat Aerial, and [unveiled TRICHON, a hand-launched surveillance tricopter](https://theinference.org/article/red-cat-unveiled-a-drone-with-no-price-tag-and-the-stock-answered-with-a-52-week-low) [6].

## The arithmetic under the retained target

[June-quarter revenue](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000748268) was $20.19 million against an operating loss of $38.65 million, and the loss has widened every quarter since the start of 2025 [3][7]. First-half revenue totals $35.66 million, so the low end of guidance, [reaffirmed in August](https://finance.yahoo.com/markets/stocks/articles/red-cat-holdings-rcat-22-042523198.html), implies about $57 million a quarter for the rest of 2026, more than double Red Cat's best quarter, the $26.23 million booked last December [7][8]. Cash of $325.6 million covers that June-quarter loss for roughly two years at the same rate [7].

*Chart: **Red Cat's operating loss has widened every quarter since early 2025** Line chart of Red Cat quarterly revenue and operating loss from Q1 2025 to Q2 2026, with the loss widening past revenue.*

*Quarterly revenue and operating income (loss), USD millions, calendar quarters, from Red Cat's SEC quarterly filings. Source: SEC EDGAR. [7]*

## What the selling does not say

The plan predates the slide: April 1 came months before the stock reached the low $4s [1]. The 750,000 noticed shares are less than half of one percent of the 152.7 million outstanding, about $4.76 million gross, and Thompson still directly held about 12.6 million shares after August [1][2]. He signed the filing's standard representation that he knows of no undisclosed material adverse information [1]. The Street holds: [Evercore](https://theinference.org/markets/companies/evercore) ISI [kept a Buy and a $15 target on October 15](https://www.theglobeandmail.com/investing/markets/stocks/RCAT-Q/pressreleases/7877213/evercore-isi-remains-a-buy-on-red-cat-holdings-rcat/), consensus sits at Strong Buy with a $16.57 average, and Piper Sandler started coverage at Hold, $9, in September [4][9]. Thompson's own August case was "[revenue increased more than fivefold year-over-year](https://www.msn.com/en-us/money/other/red-cat-holdings-stock-slides-on-q2-double-miss/ar-AA29yD7s)," with gross margins up 39 percent [5].

## November 12 decides the argument

Third-quarter results land November 12 [3]. The test is the quarter's revenue against the $57 million pace the target implies, and the Form 4 filings that will show how much of the October notice actually executed [1]. Between the first ticket and the latest notice, the stated value per share, gross divided by shares, more than halved while the size tripled [1].

## Takeaway

Chairman and CEO Jeffrey Thompson's October 15 Form 144 proposes 450,000 shares for a stated $2.03 million, a third notice in three months and less than half his August per-share price; the November 12 report against the uncut $150 million to $180 million target settles whether the selling was routine.

## Sources

1. [StockTitan, "Red Cat officer Thompson proposes $2.03M share sale" (SEC Form 144), 15 October 2026](https://www.stocktitan.net/sec-filings/RCAT/144-red-cat-holdings-inc-sec-filing-84099f14ec1b.html)
2. [The Motley Fool via AOL, "Red Cat CEO Jeffrey Thompson Sells 150,000 Shares for $1.6 Million as the Stock Soars 24%", 22 August 2026](https://www.aol.com/articles/red-cat-ceo-jeffrey-thompson-004544000.html)
3. [ad-hoc-news.de, "Zacks downgrades Red Cat Holdings stock to strong sell", 16 October 2026](https://www.ad-hoc-news.de/boerse/news/nebenwerte/zacks-downgrades-red-cat-holdings-stock-to-strong-sell/70333292)
4. [TipRanks via The Globe and Mail, "Evercore ISI Remains a Buy on Red Cat Holdings (RCAT)", 15 October 2026](https://www.theglobeandmail.com/investing/markets/stocks/RCAT-Q/pressreleases/7877213/evercore-isi-remains-a-buy-on-red-cat-holdings-rcat/)
5. [Benzinga via MSN, "Red Cat Holdings stock slides on Q2 double miss", 6 August 2026](https://www.msn.com/en-us/money/other/red-cat-holdings-stock-slides-on-q2-double-miss/ar-AA29yD7s)
6. [Defensehere, "Red Cat unveils TRICHON VTOL drone at AUSA 2026", 12 October 2026](https://defensehere.com/en/red-cat-unveils-trichon-vtol-drone-ausa-2026/)
7. [Red Cat Holdings quarterly figures from its SEC filings, retrieved 16 October 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000748268)
8. [Simply Wall St via Yahoo Finance, "Red Cat Holdings (RCAT) Is Up 22.3% After Reaffirming 2026 Guidance Amid Surging Q2 Sales", 9 August 2026](https://finance.yahoo.com/markets/stocks/articles/red-cat-holdings-rcat-22-042523198.html)
9. [Barchart via Yahoo Finance, "Red Cat CEO Just Sold $1.6 Million of Stock. Wall Street Sees 144% Rally Ahead.", 21 September 2026](https://finance.yahoo.com/markets/stocks/articles/red-cat-ceo-just-sold-154335964.html)


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Red Cat's chairman sold at $10.45, then $7.74, and now files to sell at $4.51 — The Inference. Canonical: https://theinference.org/article/red-cat-s-chairman-sold-at-10-45-then-7-74-and-now-files-to-sell-at-4-51