Red Cat Holdings, Inc. (NASDAQ:RCAT) Receives Consensus Recommendation of "Buy" from Brokerages

Key Points

• Red Cat has a consensus “Buy” rating from seven brokerages, with four Buys, two Strong Buys and one Sell; the average 12-month price target is $20.40 versus a recent share price of $9.21.
• The company’s latest quarterly results missed expectations, with an adjusted loss of $0.26 per share versus $0.21 expected and revenue of $20.2 million versus $22.65 million expected. Red Cat remains deeply unprofitable, with a negative net margin of 136.26%.
• Institutional ownership has increased, including new stakes from BlackRock and Renaissance Technologies and larger positions from State Street and Vanguard. However, Needham lowered its price target from $20 to $15 while retaining a Buy rating, and a company director sold roughly $1.9 million in shares.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) has been assigned a consensus recommendation of "Buy" from the seven brokerages that are presently covering the firm, MarketBeat reports. One analyst has rated the stock with a sell recommendation, four have assigned a buy recommendation and two have given a strong buy recommendation to the company. The average 1 year target price among brokerages that have issued a report on the stock in the last year is $20.40.

Several research analysts have recently commented on the company. LADENBURG THALM/SH SH raised Red Cat to a "strong-buy" rating in a report on Wednesday, May 6th. HC Wainwright reiterated a "buy" rating and issued a $20.00 price objective on shares of Red Cat in a research report on Friday. Clear Str upgraded Red Cat to a "strong-buy" rating in a research report on Wednesday, April 29th. Wall Street Zen cut Red Cat from a "sell" rating to a "strong sell" rating in a report on Saturday, July 18th. Finally, Needham & Company LLC lowered their target price on Red Cat from $20.00 to $15.00 and set a "buy" rating for the company in a research note on Friday.

Insider Transactions at Red Cat

In other Red Cat news, Director Paul Funk II sold 165,028 shares of the stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $11.50, for a total transaction of $1,897,822.00. The sale was disclosed in a document filed with the SEC, which is accessible through this link. 12.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Red Cat

A number of institutional investors have recently modified their holdings of the stock. BlackRock Inc. bought a new stake in shares of Red Cat during the second quarter worth $119,610,000. State Street Corp grew 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 worth $52,434,000 after buying an additional 3,815,310 shares during the period. Vanguard Group Inc. grew its position in shares of Red Cat by 43.9% during the 3rd quarter. Vanguard Group Inc. now owns 5,506,377 shares of the company's stock worth $56,991,000 after buying an additional 1,680,929 shares during the period. Davidson Kempner Capital Management LP bought a new stake in shares of Red Cat in the 3rd quarter valued at about $17,286,000. Finally, Renaissance Technologies LLC bought a new stake in shares of Red Cat in the 1st quarter valued at about $18,533,000. 37.97% of the stock is owned by institutional investors.

Red Cat Price Performance

Shares of RCAT stock opened at $9.21 on Monday. The company has a market capitalization of $1.13 billion, a P/E ratio of -11.37 and a beta of 1.32. Red Cat has a 12-month low of $5.77 and a 12-month high of $18.78. The firm has a 50-day moving average price of $9.89 and a 200 day moving average price of $11.82.

Red Cat (NASDAQ:RCAT - Get Free Report) last issued its quarterly earnings data 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). The firm had revenue of $20.20 million for the quarter, compared to the consensus estimate of $22.65 million. Red Cat had a negative return on equity of 39.64% and a negative net margin of 136.26%. As a group, research analysts expect that Red Cat will post -0.68 earnings per share for the current year.

Key Red Cat News

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 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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