Sei Investments Co. Makes New $2.33 Million Investment in Red Cat Holdings, Inc. $RCAT

Key Points

• Sei Investments acquired 177,851 Red Cat shares worth approximately $2.33 million, giving it a 0.14% stake. Institutional investors collectively own 37.97% of the company.
• Analyst sentiment remains broadly positive: Red Cat has an average “Buy” rating and an average price target of $20.40, although Needham recently cut its target to $15.
• Red Cat reported 527% year-over-year revenue growth, but its $20.2 million quarterly revenue and adjusted loss of $0.26 per share missed analyst expectations, highlighting ongoing profitability risks.

Sei Investments Co. acquired a new stake in shares of Red Cat Holdings, Inc. (NASDAQ:RCAT - Free Report) during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 177,851 shares of the company's stock, valued at approximately $2,328,000. Sei Investments Co. owned 0.14% of Red Cat at the end of the most recent reporting period.

Several other institutional investors have also modified their holdings of RCAT. State Street Corp increased its position in shares of Red Cat by 136.4% during the 4th quarter. State Street Corp now owns 6,612,153 shares of the company's stock valued at $52,434,000 after purchasing an additional 3,815,310 shares during the last quarter. Vanguard Group Inc. lifted its position in Red Cat by 9.0% in the fourth quarter. Vanguard Group Inc. now owns 6,000,037 shares of the company's stock worth $47,580,000 after buying an additional 493,660 shares during the last quarter. Geode Capital Management LLC lifted its position in Red Cat by 13.4% in the fourth quarter. Geode Capital Management LLC now owns 2,520,524 shares of the company's stock worth $19,991,000 after buying an additional 297,967 shares during the last quarter. Davidson Kempner Capital Management LP purchased a new position in Red Cat during the third quarter worth $17,286,000. Finally, Captrust Financial Advisors boosted its stake in Red Cat by 18.7% during the fourth quarter. Captrust Financial Advisors now owns 1,193,852 shares of the company's stock worth $9,467,000 after buying an additional 188,364 shares during the period. 37.97% of the stock is owned by institutional investors.

Insider Activity at Red Cat

In related news, Director Paul Funk II sold 165,028 shares of the business's stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $11.50, for a total value of $1,897,822.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 12.50% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the stock. HC Wainwright reissued a "buy" rating and issued a $20.00 target price on shares of Red Cat in a research note on Friday. LADENBURG THALM/SH SH upgraded shares of Red Cat to a "strong-buy" rating in a report on Wednesday, May 6th. Weiss Ratings reissued a "sell (d-)" rating on shares of Red Cat in a research report on Friday, July 17th. UBS Group initiated coverage on shares of Red Cat in a research note on Wednesday, May 27th. They issued a "buy" rating for the company. Finally, Roth Capital initiated coverage on Red Cat in a research note on Monday, June 1st. They set a "buy" rating and a $25.00 target price on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Buy" and an average target price of $20.40.

Red Cat News Roundup

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

• Positive Sentiment: HC Wainwright reaffirmed its Buy rating and maintained a $20 price target, implying substantial upside from the recent share price. The endorsement suggests the firm remains confident in Red Cat’s growth prospects. Benzinga article
• Positive Sentiment: Red Cat reported 527% year-over-year revenue growth for the second quarter. Gross margin rose 39% from the prior-year quarter and increased 27% sequentially, indicating improving operating performance and demand for its drone products. Business Insider article
• Neutral Sentiment: Management guided for fiscal 2026 revenue of $150 million to $180 million, broadly surrounding the $155.4 million analyst consensus. The range signals continued expansion but does not clearly represent a major forecast upgrade.
• Neutral Sentiment: Needham lowered its price target from $20 to $15 while retaining a Buy rating. The target reduction reflects more cautious valuation assumptions, though the firm still sees meaningful upside. The Fly article
• Negative Sentiment: Second-quarter results fell short of expectations: Red Cat reported an adjusted loss of $0.26 per share versus the expected $0.21 loss, while revenue of $20.2 million missed the $22.65 million consensus. The company remains deeply unprofitable, which could pressure the stock despite its growth rate. Zacks article

Red Cat Trading Up 6.2%

NASDAQ RCAT opened at $9.21 on Friday. The company's 50-day moving average price is $9.89 and its 200-day moving average price is $11.83. The stock has a market cap of $1.13 billion, a PE ratio of -11.37 and a beta of 1.31. Red Cat Holdings, Inc. has a 12 month low of $5.77 and a 12 month high of $18.78.

Red Cat (NASDAQ:RCAT - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported ($0.26) earnings per share for the quarter, missing analysts' consensus estimates of ($0.21) by ($0.05). The company had revenue of $20.20 million for the quarter, compared to the consensus estimate of $22.65 million. Red Cat had a negative net margin of 136.26% and a negative return on equity of 39.64%. As a group, sell-side analysts forecast that Red Cat Holdings, Inc. will post -0.68 earnings per share for the current year.

Red Cat Company Profile

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.

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