Q2 Earnings Estimate for Red Cat Issued By HC Wainwright

Key Points

• HC Wainwright initiated coverage on Red Cat with a Buy rating and a $20 price target, while forecasting a Q2 2026 EPS loss of ($0.21).
• Red Cat’s latest reported quarter showed a EPS miss at ($0.22) versus expectations of ($0.12), and revenue of $15.47 million came in below estimates despite strong year-over-year growth.
• The stock has been rising sharply, up 32.6%, as investors react to bullish analyst commentary, Blue Ops’ move into full-rate production, and heavy call-option buying.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Free Report) - Equities research analysts at HC Wainwright issued their Q2 2026 earnings per share (EPS) estimates for shares of Red Cat in a research report issued on Wednesday, May 27th. HC Wainwright analyst A. Dayal forecasts that the company will post earnings per share of ($0.21) for the quarter. HC Wainwright has a "Buy" rating and a $20.00 price target on the stock. The consensus estimate for Red Cat's current full-year earnings is ($0.65) per share. HC Wainwright also issued estimates for Red Cat's Q3 2026 earnings at ($0.19) EPS, Q4 2026 earnings at ($0.17) EPS, FY2026 earnings at ($0.78) EPS, FY2027 earnings at ($0.75) EPS, FY2028 earnings at ($0.67) EPS, FY2029 earnings at ($0.11) EPS and FY2030 earnings at $0.52 EPS.

Several other research analysts have also weighed in on RCAT. Clear Str raised Red Cat to a "strong-buy" rating in a research report on Wednesday, April 29th. Wall Street Zen lowered Red Cat from a "hold" rating to a "sell" rating in a research report on Saturday, May 2nd. Needham & Company LLC boosted their price target on Red Cat from $16.00 to $20.00 and gave the stock a "buy" rating in a research report on Thursday, March 19th. LADENBURG THALM/SH SH raised Red Cat to a "strong-buy" rating in a research report on Wednesday, May 6th. Finally, UBS Group assumed coverage on Red Cat in a research report on Wednesday. They set a "buy" rating on the stock. Two analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Buy" and an average target price of $20.50.

Red Cat Stock Up 32.6%

NASDAQ:RCAT opened at $14.15 on Friday. The firm has a market capitalization of $1.74 billion, a price-to-earnings ratio of -20.21 and a beta of 1.21. Red Cat has a twelve month low of $5.71 and a twelve month high of $18.78. The stock's 50 day moving average price is $12.00 and its two-hundred day moving average price is $11.40.

Red Cat (NASDAQ:RCAT - Get Free Report) last announced its earnings results on Thursday, May 7th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.12) by ($0.10). The firm had revenue of $15.47 million during the quarter, compared to analyst estimates of $17.63 million. Red Cat had a negative net margin of 138.36% and a negative return on equity of 35.86%. Red Cat's revenue was up 849.1% on a year-over-year basis.

Institutional Trading of Red Cat

Institutional investors have recently added to or reduced their stakes in the company. Fifth Third Bancorp bought a new stake in Red Cat in the 1st quarter valued at $33,000. IFP Advisors Inc boosted its stake in Red Cat by 181.1% in the 3rd quarter. IFP Advisors Inc now owns 2,670 shares of the company's stock valued at $28,000 after purchasing an additional 1,720 shares during the period. NFSG Corp boosted its stake in Red Cat by 200.0% in the 1st quarter. NFSG Corp now owns 3,000 shares of the company's stock valued at $39,000 after purchasing an additional 2,000 shares during the period. PNC Financial Services Group Inc. boosted its stake in Red Cat by 294.6% in the 1st quarter. PNC Financial Services Group Inc. now owns 3,042 shares of the company's stock valued at $40,000 after purchasing an additional 2,271 shares during the period. Finally, Montag A & Associates Inc. boosted its stake in Red Cat by 552.0% in the 3rd quarter. Montag A & Associates Inc. now owns 3,260 shares of the company's stock valued at $34,000 after purchasing an additional 2,760 shares during the period. 37.97% of the stock is currently owned by institutional investors.

Key Red Cat News

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

• Positive Sentiment: HC Wainwright initiated coverage on Red Cat with a Buy rating and a $20 price target, implying meaningful upside from recent levels and supporting the stock’s re-rating story. RCAT Stock Gets Wall Street Thumbs Up – This Analyst Sees Upside Potential Of Nearly 100% From Current Levels
• Positive Sentiment: Red Cat’s Blue Ops unit announced it is ramping its U.S.-built Variant 7 uncrewed surface vessel into full-rate production, highlighting progress in its air-land-sea autonomy platform and giving investors a concrete execution milestone. Blue Ops Ramps into Full-Rate Production of U.S.-Built Variant 7, Advancing Red Cat's Autonomy Stack Across Air, Land and Sea
• Positive Sentiment: Unusual options activity showed traders buying a large volume of call options on RCAT, a sign of bullish sentiment and speculation that the move could continue. Traders Buy Large Volume of Call Options on Red Cat NASDAQ: RCAT
• Neutral Sentiment: Broader drone-stock strength was fueled by reports that the Trump administration is discussing funding structures for U.S. drone companies, including possible direct federal support or equity stakes, which is lifting the entire sector and helping RCAT. Drone Stock Takes Off as Trump Administration Buzz Builds
• Neutral Sentiment: Market chatter and ETF/institutional ownership data suggest Red Cat remains a heavily watched small-cap defense drone name, which can amplify volatility on headlines. Red Cat Holdings jumps as drone-sector funding talk and fresh defense milestones fuel buying
• Negative Sentiment: The stock’s move is still being driven more by headlines and speculation than by fundamentals, and Red Cat recently reported a quarterly EPS miss and lower-than-expected revenue, reminding investors that profitability remains a challenge. Red Cat Stock Performance and Earnings Data

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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