Insider Trading March 31, 2026

Palladyne AI Chief Legal Officer Sells $19,251 in Stock to Cover RSU Taxes

Stephen Sonne executed multiple sales at roughly $5.55 per share as company reports rapid revenue growth amid operating losses and defense contracts

By Derek Hwang PDYN
Palladyne AI Chief Legal Officer Sells $19,251 in Stock to Cover RSU Taxes
PDYN

Palladyne AI Corp. (OTC: PDYN) Chief Legal Officer Stephen Sonne reported the sale of 3,471 common shares on March 30, 2026, in a Form 4 filing with the SEC. The shares were sold to satisfy income tax liabilities tied to vested restricted stock units and fetched a weighted average price of $5.5463, for total proceeds of $19,251. The stock has since traded up to $6.07, while an InvestingPro assessment indicates the company is trading above its Fair Value.

Key Points

  • Chief Legal Officer Stephen Sonne sold 3,471 shares on March 30, 2026 at a weighted average price of $5.5463, for $19,251 in proceeds - impacts corporate insiders and market for PDYN.
  • Sales were executed across prices from $5.295 to $5.6301 to cover income tax liabilities from vesting restricted stock units; Sonne retains 202,735 shares following the transaction - relevant to equity compensation and tax-driven insider activity.
  • Palladyne AI reported 118% year-over-year revenue growth in Q4 2025 largely from acquisitions but also reported an operating loss; defense contracts and SwarmOS-Draganfly integration point to technological advances affecting defense and aerospace sectors.

Overview

Palladyne AI Corp. (OTC: PDYN) disclosed in a Securities and Exchange Commission Form 4 filing that Chief Legal Officer Stephen Sonne sold 3,471 shares of the company’s common stock on March 30, 2026. The filing records a weighted average sale price of $5.5463 per share, producing total proceeds of $19,251.

Transaction details

The reported disposals were carried out in a sequence of trades at prices spanning from $5.295 to $5.6301. According to the Form 4, the shares were sold specifically to meet income tax obligations arising from the vesting of restricted stock units (RSUs). The filing notes that 8,995 RSUs settled on March 29, 2026, and 3,471 of those shares were then sold to satisfy the related tax withholding as detailed in this Form 4.

After the tax-related sales, Sonne is recorded as owning 202,735 shares directly. That total includes shares represented by RSUs and reflects the reduction tied to the March 30, 2026 sales.

Market context

The insider sale took place amid notable short-term movement in the company’s stock. The price had declined 6.5% in the week leading up to the transaction, and has since been reported at $6.07. Separately, InvestingPro’s analysis, as cited in public disclosures, indicates the company is currently valued above its Fair Value estimate.

Company developments

Palladyne AI has recently reported several operational milestones that accompany the insider disclosure. For the fourth quarter of 2025 the company recorded a 118% year-over-year increase in revenue, a rise the company attributes largely to acquisitions. Despite that revenue growth, the company reported an operating loss for the period.

On the defense side, Palladyne AI’s subsidiary GuideTech won a contract with the U.S. Navy to develop an air-launched weapon system named the Air-Launched Rapid Response Missile. Specifications reported in company disclosures describe the missile as capable of traveling beyond 350 nautical miles at high altitudes with a sustained speed exceeding Mach 4.0.

In addition, Palladyne AI completed integration testing between its SwarmOS platform and Draganfly’s drone components. The company described this step as progress toward autonomous swarm capabilities intended for defense applications.

Takeaway

The March 30, 2026 Form 4 documents a tax-driven insider sale rather than an opportunistic liquidation, while corporate disclosures point to fast revenue growth accompanied by an operating loss and defense-technology contract wins. These developments together illustrate Palladyne AI’s ongoing strategic push within defense applications and related technology integration work.


Note: The article reflects information reported in the company’s SEC filing and the company’s public disclosures.

Risks

  • Short-term stock volatility - the shares declined 6.5% in the week before the sale and subsequently moved to $6.07, indicating market volatility that can affect shareholders and traders in PDYN.
  • Valuation risk - InvestingPro analysis cited in disclosures suggests the company is trading above its Fair Value, posing valuation uncertainty for investors and market participants.
  • Operational and profitability uncertainty - despite a 118% increase in revenue for Q4 2025 driven by acquisitions, the company reported an operating loss during the period, which poses risks to earnings and cash-flow expectations.

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