Tudor Investment Corp ET AL Purchases 870,612 Shares of Red Cat Holdings, Inc. $RCAT

Key Points

• Tudor Investment Corp ET AL bought an additional 870,612 shares of Red Cat, raising its stake to 1,277,523 shares (about 1.07% of the company) valued at roughly $13.2 million at quarter-end.
• Analyst coverage is mixed: a few firms raised price targets and issued buy ratings (Needham, Northland, Ladenburg) but one firm reiterated a sell, leaving a MarketBeat consensus of "Hold" with a $20.67 average target.
• Red Cat reported strong top‑line growth and expanded production capacity, but it missed Q4 EPS (‑$0.17 vs. ‑$0.14 expected) and remains unprofitable with negative margins and cash‑burn concerns, creating execution and profitability risk despite revenue momentum.

Tudor Investment Corp ET AL boosted its position in Red Cat Holdings, Inc. (NASDAQ:RCAT - Free Report) by 214.0% in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 1,277,523 shares of the company's stock after purchasing an additional 870,612 shares during the quarter. Tudor Investment Corp ET AL owned approximately 1.07% of Red Cat worth $13,222,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also added to or reduced their stakes in the company. Bank of America Corp DE boosted its holdings in shares of Red Cat by 407.0% during the 4th quarter. Bank of America Corp DE now owns 3,397 shares of the company's stock valued at $44,000 after buying an additional 2,727 shares in the last quarter. Royal Bank of Canada increased its stake in shares of Red Cat by 76.4% in the 1st quarter. Royal Bank of Canada now owns 57,800 shares of the company's stock worth $340,000 after acquiring an additional 25,031 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Red Cat by 63.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 229,259 shares of the company's stock valued at $1,348,000 after acquiring an additional 89,095 shares during the period. Goldman Sachs Group Inc. lifted its position in Red Cat by 28.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 266,099 shares of the company's stock valued at $1,565,000 after acquiring an additional 59,334 shares during the period. Finally, ProShare Advisors LLC bought a new stake in Red Cat during the second quarter worth about $112,000. Hedge funds and other institutional investors own 37.97% of the company's stock.

Analysts Set New Price Targets

RCAT has been the topic of a number of recent research reports. Weiss Ratings restated a "sell (d-)" rating on shares of Red Cat in a report on Thursday, January 22nd. LADENBURG THALM/SH SH lifted their target price on shares of Red Cat from $15.00 to $20.00 and gave the company a "buy" rating in a report on Tuesday, March 3rd. Wall Street Zen upgraded Red Cat from a "sell" rating to a "hold" rating in a research note on Saturday. Northland Securities set a $22.00 price objective on Red Cat in a research report on Tuesday, January 20th. Finally, Needham & Company LLC lifted their price objective on Red Cat from $16.00 to $20.00 and gave the company a "buy" rating in a research note on Thursday. Two analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Red Cat has a consensus rating of "Hold" and a consensus target price of $20.67.

Red Cat Stock Performance

Shares of RCAT stock opened at $13.25 on Friday. The company has a market capitalization of $1.58 billion, a price-to-earnings ratio of -17.67 and a beta of 1.53. Red Cat Holdings, Inc. has a one year low of $4.60 and a one year high of $18.78. The company's 50-day moving average is $13.90 and its 200 day moving average is $11.17.

Red Cat (NASDAQ:RCAT - Get Free Report) last issued its earnings results on Wednesday, March 18th. The company reported ($0.17) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.14) by ($0.03). The firm had revenue of $26.24 million during the quarter, compared to analysts' expectations of $24.50 million. Red Cat had a negative return on equity of 48.12% and a negative net margin of 176.96%. As a group, research analysts predict that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Key Headlines Impacting Red Cat

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

• Positive Sentiment: Needham & Company raised its price target to $20 and maintained a "buy" rating, signaling upside potential from institutional coverage and contributing to investor optimism. Needham Price Target Raise
• Positive Sentiment: Northland Securities issued a buy on RCAT, adding another bullish broker stance that can support further interest from buy‑side investors. Red Cat Gets a Buy from Northland
• Positive Sentiment: Company reports record Q4 revenue and a 161% full‑year revenue increase, and says production capacity was expanded ~520%, which supports a growth narrative if the company can convert scale into margin improvement. Red Cat Reports Record Q4 Revenue
• Positive Sentiment: Recent sharp share moves have created momentum — RCAT showed strong 30‑day returns despite intra‑day selling, attracting momentum traders. Valuation Check After Sharp Swings
• Neutral Sentiment: Management has not provided formal FY26 guidance yet but says it’s comfortable in the top half of Street estimates; the timing of formal guidance (linked to a contract finalization) is a near‑term catalyst but remains uncertain. No Formal Guidance
• Neutral Sentiment: Unusually high options activity and elevated share volume suggest speculative positioning and increased short‑term volatility, which can amplify price moves in either direction. Unusually High Options Trading
• Neutral Sentiment: Recent earnings call and transcripts highlight product expansion (e.g., Black Widow, Maritime USVs) and production ramp efforts — strategic positives, but execution risk remains. Earnings Call Transcript
• Negative Sentiment: Q4 EPS missed estimates (reported -$0.17 vs. -$0.14 consensus) and the company shows a deeply negative net margin and ROE, stoking concerns that revenue growth has not yet translated into profitability. Earnings Details & EPS Miss
• Negative Sentiment: Analysts and commentators note Red Cat is still burning cash and in some cases selling units near cost to drive share, which pressures margins and raises questions about near‑term free cash flow. Revenue Jumps But Still Bleeds Cash
• Negative Sentiment: Coverage pieces pointed to a pullback after the big run — margin pressure and profit‑taking helped drive the stock lower today amid heavy volume. Why Red Cat Stock Got Declawed

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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