Red Cat Shares Face Critical Test as Lock-Up Period Expires

Red Cat Holdings finds itself navigating turbulent market conditions as a key restriction on insider stock sales lifts today. The expiration of the 61-day lock-up period for shares held by directors and senior executives introduces additional pressure to a stock already reeling from recent financial results.

Last Friday’s earnings release presented investors with a complex picture. While Red Cat reported significant revenue growth, the company’s losses substantially exceeded market expectations. The defense drone specialist posted a loss of $0.16 per share, dramatically missing the anticipated $0.09 per share loss and representing a nearly 78% deviation from analyst projections.

This earnings disappointment triggered a sharp sell-off, with shares declining more than Read more...