Analysts Set Red Cat Holdings, Inc. (NASDAQ:RCAT) Price Target at $14.00

Red Cat Holdings, Inc. (NASDAQ:RCAT) has received a consensus rating of “Buy” from the five analysts that are currently covering the firm, Marketbeat.com reports. One research analyst has rated the stock with a sell recommendation, two have given a buy recommendation and two have given a strong buy recommendation to the company. The average 12-month target price among brokerages that have issued ratings on the stock in the last year is $16.00.

A number of research firms recently commented on RCAT. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Red Cat in a research note on Wednesday, October 8th. LADENBURG THALM/SH SH upgraded shares of Red Cat to a “strong-buy” rating in a report on Thursday, December 18th. Needham & Company LLC upped their price objective on shares of Red Cat from $12.00 to $16.00 and gave the company a “buy” rating in a research note on Tuesday. Finally, Wall Street Zen cut shares of Red Cat from a “hold” rating to a “sell” rating in a research report on Saturday, October 4th.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. increased its holdings in Red Cat by 43.9% in the third quarter. Vanguard Group Inc. now owns 5,506,377 shares of the company’s stock worth $56,991,000 after purchasing an additional 1,680,929 shares in the last quarter. AWM Investment Company Inc. grew its position in shares of Red Cat by 15.3% during the 2nd quarter. AWM Investment Company Inc. now owns 2,037,616 shares of the company’s stock worth $14,834,000 after buying an additional 269,942 shares during the period. Brevan Howard Capital Management LP acquired a new stake in shares of Red Cat during the 3rd quarter worth approximately $19,739,000. Davidson Kempner Capital Management LP bought a new stake in shares of Red Cat in the 3rd quarter valued at $17,286,000. Finally, Geode Capital Management LLC lifted its position in shares of Red Cat by 142.7% during the 2nd quarter. Geode Capital Management LLC now owns 1,656,720 shares of the company’s stock valued at $12,063,000 after acquiring an additional 974,121 shares during the period. 37.97% of the stock is owned by institutional investors and hedge funds.

More Red Cat News

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

• Positive Sentiment: Preliminary Q4 / FY2025 revenue explosion tied to mass production under a U.S. Army SRR contract — company expects Q4 revenue of $24.0–$26.5M (~1,842% YoY) as deliveries ramp in LRIP, signaling a move from prototype to production. Red Cat Holdings Announces Preliminary Revenue Results for the Fourth Quarter and Full Year 2025 Red Cat stock soars after preliminary revenue surge of over 1,800%
• Positive Sentiment: Operational expansion and contract tailwinds: production contract value expanded (reported ~ $35M), NATO catalogue listing for Black Widow, new maritime division (Blue Ops) and a large new US facility — all support multi-year revenue potential and diversification. Red Cat Revenue Surges 1,800% After Crossing Into Mass Production (MarketBeat)
• Positive Sentiment: Analyst and market response: Needham raised its price target to $16 and kept a Buy rating, reflecting updated models for growing defense revenue and production ramp. Benzinga / Tickerreport coverage of analyst price target raise
• Positive Sentiment: Macro defense spending tailwind: reports about a proposed larger U.S. defense budget are supporting investor appetite for drone/defense names, benefiting RCAT sentiment. Trump’s $1.5 Trillion Military Budget Is Sending This Drone Stock Soaring: Momentum Score Spikes
• Neutral Sentiment: Valuation and analyst notes: independent valuation pieces highlight strong momentum but also point to ongoing losses and model revisions — useful for assessing whether current pricing already embeds the production story. Assessing Red Cat Holdings (RCAT) Valuation After Recent Share Price Momentum And Ongoing Losses
• Neutral Sentiment: Company guidance entries reported updated FY/Q4 guidance (details incomplete in some summaries) — guidance clarity from the company’s upcoming report and audited results will be important. Red Cat stock in spotlight after massive revenue growth outlook
• Negative Sentiment: Profitability and sustainability risks: despite revenue growth, Red Cat reported a significant net loss (e.g., ~$52.4M through 9M/2025 in some coverage); the company remains unprofitable and must convert revenue into margins. Red Cat Revenue Surges 1,800% After Crossing Into Mass Production (MarketBeat)
• Negative Sentiment: High short interest and volatility risk: roughly ~20% of float sold short — this amplifies upside on positive news (short squeeze) but also raises downside volatility if execution or guidance disappoints. Red Cat stock soars after preliminary revenue surge of over 1,800%

Red Cat Stock Up 4.6%

Shares of Red Cat stock opened at $13.66 on Monday. The stock has a market cap of $1.63 billion, a price-to-earnings ratio of -31.05 and a beta of 1.48. Red Cat has a twelve month low of $4.58 and a twelve month high of $16.70. The company’s fifty day moving average is $8.51 and its 200 day moving average is $9.52.

Red Cat (NASDAQ:RCAT) last announced its earnings results on Thursday, November 13th. The company reported ($0.16) EPS for the quarter, missing the consensus estimate of ($0.07) by ($0.09). The business had revenue of $9.65 million during the quarter, compared to analysts’ expectations of $8.18 million. As a group, equities analysts anticipate that Red Cat will post -0.5 earnings per share 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.