Red Cat Holdings, Inc. (NASDAQ:RCAT) Receives Consensus Rating of “Buy” from Analysts

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) have earned a consensus rating of “Buy” from the seven analysts that are currently covering the firm, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, four have given a buy recommendation and two have issued a strong buy recommendation on the company. The average 12-month price objective among analysts that have updated their coverage on the stock in the last year is $20.40.

Several brokerages recently commented on RCAT. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a report on Friday, July 17th. Wall Street Zen lowered shares of Red Cat from a “sell” rating to a “strong sell” rating in a research note on Saturday, July 18th. HC Wainwright reissued a “buy” rating and set a $20.00 target price on shares of Red Cat in a research report on Friday, August 7th. Roth Capital assumed coverage on shares of Red Cat in a research note on Monday, June 1st. They issued a “buy” rating and a $25.00 target price for the company. Finally, Needham & Company LLC dropped their price target on shares of Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a research note on Friday, August 7th.

Red Cat News Summary

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

• Positive Sentiment: Red Cat is gaining alongside other domestic drone companies after reports that President Trump plans a 100% tariff on drones. Investors appear to view the measure as a potential boost for U.S.-based suppliers serving defense and government customers. Unusual Machines Soars, Red Cat Climbs and Ondas Gains on Trump’s Drone Tariff
• Positive Sentiment: The company promoted Mitch McDonald to divisional CEO of its unmanned aerial systems operations, bringing Teal Drones and FlightWave Aerospace under unified leadership. The move is intended to improve coordination, manufacturing scale and execution as defense demand grows. Red Cat Promotes Mitch McDonald to Divisional CEO of its UAS Operations
• Neutral Sentiment: Weakness in drone peer Ondas Holdings after its earnings report may create sector-wide volatility. However, Ondas’ Israeli defense tender win reinforces investor interest in the broader autonomous-defense market without providing direct revenue to RCAT. Ondas Drops After Earnings
• Negative Sentiment: Recent SEC-reported insider sales could temper enthusiasm. Director Christopher R. Moe sold a combined 30,000 shares, while Director Nicholas Reyland Liuzza Jr. sold 55,000 shares. The transactions reduced their reported holdings and may raise concerns about insider conviction, even though both directors retained substantial positions. Red Cat Director Stock Sale
• Negative Sentiment: Analysts reportedly reduced their third-quarter EPS expectations. That follows Red Cat’s latest quarterly miss, when it reported a loss of $0.26 per share versus an expected loss of $0.21 and revenue of $20.2 million versus $22.65 million expected. The company remains unprofitable, making execution and future defense orders important to the valuation.

Insider Transactions at Red Cat

In related news, Director Christopher R. Moe sold 20,000 shares of the business’s stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $10.51, for a total value of $210,200.00. Following the transaction, the director owned 200,502 shares in the company, valued at approximately $2,107,276.02. The trade was a 9.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $10.63, for a total value of $584,650.00. Following the completion of the transaction, the director directly owned 489,874 shares of the company’s stock, valued at $5,207,360.62. This represents a 10.09% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 240,028 shares of company stock valued at $2,692,672. 12.50% of the stock is currently owned by insiders.

Institutional Trading of Red Cat

Institutional investors have recently added to or reduced their stakes in the stock. Sei Investments Co. bought a new position in Red Cat during the first quarter worth $2,328,000. EVR Research LP bought a new stake in Red Cat during the fourth quarter valued at $1,705,000. Janus Henderson Group PLC raised its holdings in shares of Red Cat by 733.7% during the first quarter. Janus Henderson Group PLC now owns 392,808 shares of the company’s stock worth $5,141,000 after purchasing an additional 345,693 shares during the period. Empowered Funds LLC acquired a new stake in shares of Red Cat during the first quarter worth $2,232,000. Finally, Caitong International Asset Management Co. Ltd lifted its position in shares of Red Cat by 1,825.1% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 54,152 shares of the company’s stock worth $429,000 after buying an additional 51,339 shares during the last quarter. 37.97% of the stock is owned by institutional investors and hedge funds.

Red Cat Stock Up 8.8%

Shares of NASDAQ RCAT opened at $11.13 on Monday. The firm has a 50-day moving average price of $9.51 and a 200 day moving average price of $11.66. The stock has a market capitalization of $1.37 billion, a price-to-earnings ratio of -13.74 and a beta of 1.31. Red Cat has a 52 week low of $5.77 and a 52 week high of $18.78.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings results 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 net margin of 136.26% and a negative return on equity of 32.25%. The business had revenue of $20.20 million during the quarter, compared to analysts’ expectations of $22.65 million. Equities research analysts expect that Red Cat will post -0.78 EPS for the current fiscal year.

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.