Brokerages Set Red Cat Holdings, Inc. (NASDAQ:RCAT) Price Target at $20.40

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) have received a consensus rating of “Buy” from the seven ratings firms that are currently covering the firm, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell rating, four have assigned a buy rating and two have given a strong buy rating to the company. The average 1 year price target among analysts that have updated their coverage on the stock in the last year is $20.40.

RCAT has been the topic of several recent research reports. Roth Capital initiated coverage on shares of Red Cat in a report on Monday, June 1st. They issued a “buy” rating and a $25.00 price target on the stock. LADENBURG THALM/SH SH raised Red Cat to a “strong-buy” rating in a report on Wednesday, May 6th. Wall Street Zen lowered Red Cat from a “sell” rating to a “strong sell” rating in a research report on Saturday, July 18th. HC Wainwright reaffirmed a “buy” rating and set a $20.00 price objective on shares of Red Cat in a research note on Friday, August 7th. Finally, Clear Str raised shares of Red Cat to a “strong-buy” rating in a report on Wednesday, April 29th.

Insider Buying and Selling

In related news, Director Paul Funk II sold 165,028 shares of the firm’s stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $11.50, for a total transaction of $1,897,822.00. The transaction was disclosed in a document filed with the SEC, which is available at this link. Corporate insiders own 12.50% of the company’s stock.

Hedge Funds Weigh In On Red Cat

A number of large investors have recently bought and sold shares of the business. Sei Investments Co. acquired a new position in Red Cat in the 1st quarter valued at $2,328,000. EVR Research LP acquired a new position in Red Cat in the 4th quarter valued at about $1,705,000. Janus Henderson Group PLC raised its position in shares of Red Cat by 733.7% during the 1st quarter. Janus Henderson Group PLC now owns 392,808 shares of the company’s stock valued at $5,141,000 after buying an additional 345,693 shares during the period. Caitong International Asset Management Co. Ltd lifted its holdings in Red Cat by 1,825.1% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 54,152 shares of the company’s stock valued at $429,000 after acquiring an additional 51,339 shares during the last quarter. Finally, Empowered Funds LLC purchased a new position in Red Cat in the first quarter worth approximately $2,232,000. Institutional investors and hedge funds own 37.97% of the company’s stock.

Red Cat Stock Down 3.2%

Red Cat stock opened at $10.32 on Monday. Red Cat has a 52 week low of $5.77 and a 52 week high of $18.78. The company has a market capitalization of $1.27 billion, a price-to-earnings ratio of -12.74 and a beta of 1.31. The stock has a 50-day moving average price of $9.64 and a 200 day moving average price of $11.70.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share for the quarter, missing the consensus estimate of ($0.21) by ($0.05). Red Cat had a negative return on equity of 39.64% and a negative net margin of 136.26%.The business had revenue of $20.20 million during the quarter, compared to analyst estimates of $22.65 million. Research analysts anticipate that Red Cat will post -0.76 EPS for the current fiscal year.

Trending Headlines about Red Cat

Here are the key news stories impacting Red Cat this week:

• Positive Sentiment: Red Cat promoted Mitch McDonald to Divisional CEO of its unmanned aircraft systems operations. He will oversee Teal Drones and FlightWave Aerospace under one leadership structure, which the company says should improve coordination, manufacturing scale and operational efficiency as demand from U.S. and allied defense customers grows. Red Cat Promotes Mitch McDonald to Divisional CEO of its UAS Operations
• Positive Sentiment: HC Wainwright maintained a Buy rating and a $20 price target, substantially above the recent trading level, despite reducing several earnings forecasts. Institutional ownership trends were also broadly favorable, with State Street and other funds reporting sizable additions to their positions.
• Neutral Sentiment: Red Cat experienced unusually heavy options activity, suggesting elevated trading interest and potentially higher short-term volatility, but the available report did not identify a clear bullish or bearish directional signal. Red Cat Sees Unusually Large Options Volume
• Negative Sentiment: Northland Securities and HC Wainwright lowered EPS estimates across 2026-2030. Northland cut its FY2026 forecast to a $0.84 loss per share from $0.73 and FY2027 to a $0.70 loss from $0.49. HC Wainwright reduced its FY2026 estimate to a $0.89 loss and FY2027 to a $0.90 loss, indicating expectations for prolonged losses.
• Negative Sentiment: The revisions follow Red Cat’s latest quarterly results, which missed analyst expectations on both earnings and revenue: an EPS loss of $0.26 versus an expected $0.21 loss, and revenue of $20.2 million versus a $22.65 million estimate. The company remains unprofitable, with a negative net margin and return on equity.
• Negative Sentiment: Reported insider activity showed two open-market sales totaling roughly 315,000 shares and no purchases during the past six months, a potential signal of reduced insider conviction.

About Red Cat

Red Cat Holdings, Inc (NASDAQ: RCAT) is a technology holding company that develops and delivers advanced robotics, autonomy, and sensing solutions for defense, national security, public safety and commercial customers. Headquartered in American Fork, Utah, the company brings together a portfolio of specialized operating businesses focused on unmanned aerial systems (UAS), mission management software, precision mapping sensors and engineering services.

Through its UAS segment, Red Cat designs and manufactures small to medium-sized fixed-wing and vertical-takeoff drones that support intelligence, surveillance and reconnaissance (ISR) missions.