Red Cat (NASDAQ:RCAT) Receives “Buy” Rating from HC Wainwright

HC Wainwright reaffirmed their buy rating on shares of Red Cat (NASDAQ:RCAT) in a research note published on Friday,Benzinga reports. HC Wainwright currently has a $20.00 target price on the stock.

Other research analysts have also issued reports about the company. Wall Street Zen lowered Red Cat from a “sell” rating to a “strong sell” rating in a report on Saturday, July 18th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research report on Friday, July 17th. LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a research note on Wednesday, May 6th. Clear Str upgraded shares of Red Cat to a “strong-buy” rating in a research report on Wednesday, April 29th. Finally, Roth Capital assumed coverage on shares of Red Cat in a research report on Monday, June 1st. They set a “buy” rating and a $25.00 price target on the stock. Two investment analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Red Cat presently has a consensus rating of “Buy” and an average price target of $20.40.

Red Cat Price Performance

RCAT stock opened at $9.21 on Friday. The firm has a market cap of $1.13 billion, a price-to-earnings ratio of -11.37 and a beta of 1.31. Red Cat has a 1-year low of $5.77 and a 1-year high of $18.78. The firm has a fifty day moving average price of $9.89 and a two-hundred day moving average price of $11.83.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.21) by ($0.05). The company had revenue of $20.20 million during 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, analysts expect that Red Cat will post -0.68 EPS for the current fiscal year.

Insider Buying and Selling

In other Red Cat news, Director Paul Funk II sold 165,028 shares of the company’s stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $11.50, for a total value of $1,897,822.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 12.50% of the company’s stock.

Institutional Trading of Red Cat

A number of hedge funds and other institutional investors have recently made changes to their positions in RCAT. Arizona State Retirement System grew its holdings in shares of Red Cat by 3.0% in the 4th quarter. Arizona State Retirement System now owns 29,311 shares of the company’s stock worth $232,000 after acquiring an additional 855 shares during the last quarter. CoreCap Advisors LLC lifted its holdings in shares of Red Cat by 13.8% in the second quarter. CoreCap Advisors LLC now owns 9,039 shares of the company’s stock valued at $96,000 after purchasing an additional 1,095 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. boosted its position in shares of Red Cat by 0.7% in the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 167,084 shares of the company’s stock worth $1,325,000 after buying an additional 1,147 shares during the period. Advisory Services Network LLC boosted its position in shares of Red Cat by 5.3% in the third quarter. Advisory Services Network LLC now owns 30,200 shares of the company’s stock worth $313,000 after buying an additional 1,507 shares during the period. Finally, Western Wealth Management LLC grew its holdings in shares of Red Cat by 4.5% during the first quarter. Western Wealth Management LLC now owns 36,722 shares of the company’s stock valued at $481,000 after buying an additional 1,570 shares in the last quarter. 37.97% of the stock is currently owned by institutional investors.

Key Headlines Impacting Red Cat

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

About Red Cat

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.