Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) fell 3.2% during mid-day trading on Wednesday . The company traded as low as $10.16 and last traded at $10.32. Approximately 9,869,017 shares were traded during mid-day trading, a decline of 29% from the average session volume of 13,944,098 shares. The stock had previously closed at $10.66.
Red Cat News Roundup
Here are the key news stories impacting Red Cat this week:
- Positive Sentiment: Red Cat promoted Mitch McDonald to Divisional CEO of its UAS operations, placing Teal Drones and FlightWave Aerospace under unified leadership. The company said the move should improve coordination, manufacturing scale and execution as demand from U.S. and allied defense organizations grows. Red Cat Promotes Mitch McDonald to Divisional CEO of its UAS Operations
- Positive Sentiment: Institutional activity was broadly supportive, with 178 investors adding shares in their latest reported quarter versus 102 reducing positions. State Street added approximately 4.9 million shares, while several other funds also increased their holdings.
- Positive Sentiment: HC Wainwright maintained a Buy rating and a $20 price target, well above recent trading levels. The stock has also experienced unusually high options activity, potentially reflecting increased speculative interest.
- Neutral Sentiment: Reported short interest was zero shares, but that figure appears inconsistent with the accompanying data and may not provide a reliable signal.
- Negative Sentiment: Northland Securities and HC Wainwright lowered multiple 2026–2030 EPS forecasts. The revised estimates continue to show substantial losses, including FY2026 EPS forecasts of approximately $(0.84) to $(0.89).
- Negative Sentiment: Red Cat’s latest quarter fell short of expectations, with a $0.26 per-share loss versus the $0.21 consensus estimate and revenue of $20.2 million versus estimates of $22.65 million. The company also reported a deeply negative net margin, reinforcing concerns about near-term profitability.
- Negative Sentiment: Two insiders reportedly sold shares during the past six months without any disclosed open-market purchases, a potential cautionary signal for investors.
Wall Street Analyst Weigh In
Several analysts recently issued reports on the company. Wall Street Zen cut Red Cat from a "sell" rating to a "strong sell" rating in a research note on Saturday, July 18th. LADENBURG THALM/SH SH raised Red Cat to a "strong-buy" rating in a research report on Wednesday, May 6th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Red Cat in a report on Friday, July 17th. Roth Capital initiated coverage on Red Cat in a research report on Monday, June 1st. They issued a "buy" rating and a $25.00 price objective on the stock. Finally, UBS Group began coverage on Red Cat in a research note on Wednesday, May 27th. They set a "buy" rating on the stock. Two analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus target price of $20.40.
Check Out Our Latest Research Report on RCAT
Red Cat Stock Down 3.2%
The company has a market cap of $1.27 billion, a PE ratio of -12.74 and a beta of 1.31. The firm's 50-day moving average is $9.71 and its 200-day moving average is $11.75.
Red Cat (NASDAQ:RCAT - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported ($0.26) EPS 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 company had revenue of $20.20 million during the quarter, compared to analysts' expectations of $22.65 million. As a group, equities research analysts anticipate that Red Cat Holdings, Inc. will post -0.74 EPS for the current fiscal year.
Insider Activity at Red Cat
In related news, Director Paul Funk II sold 165,028 shares of Red Cat stock in a transaction that occurred on Thursday, June 11th. The stock was 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 can be accessed through this link. 12.50% of the stock is currently owned by insiders.
Hedge Funds Weigh In On Red Cat
Institutional investors have recently added to or reduced their stakes in the company. Fifth Third Bancorp bought a new stake in shares of Red Cat during the 1st quarter valued at $33,000. Allworth Financial LP bought a new position in shares of Red Cat in the 2nd quarter worth about $28,000. IFP Advisors Inc lifted its position in Red Cat by 181.1% during the 3rd quarter. IFP Advisors Inc now owns 2,670 shares of the company's stock valued at $28,000 after acquiring an additional 1,720 shares during the period. NFSG Corp lifted its position in Red Cat by 200.0% during the 1st quarter. NFSG Corp now owns 3,000 shares of the company's stock valued at $39,000 after acquiring an additional 2,000 shares during the period. Finally, PNC Financial Services Group Inc. boosted its stake in Red Cat by 294.6% during the first quarter. PNC Financial Services Group Inc. now owns 3,042 shares of the company's stock worth $40,000 after acquiring an additional 2,271 shares in the last quarter. Institutional investors own 37.97% of the company's stock.
Red Cat Company Profile
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Get Free Report)
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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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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