Analysts Set Red Cat Holdings, Inc. (NASDAQ:RCAT) Target Price at $20.40

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) have received an average rating of “Buy” from the seven brokerages that are covering the company, Marketbeat Ratings reports. One analyst has rated the stock with a sell recommendation, four have issued a buy recommendation and two have assigned a strong buy recommendation to the company. The average twelve-month price objective among analysts that have covered the stock in the last year is $20.40.

RCAT has been the subject of a number of research analyst reports. Needham & Company LLC cut their target price on Red Cat from $20.00 to $15.00 and set a “buy” rating for the company in a research report on Friday, August 7th. UBS Group initiated coverage on Red Cat in a research report on Wednesday, May 27th. They set a “buy” rating for the company. Wall Street Zen lowered Red Cat from a “sell” rating to a “strong sell” rating in a report on Saturday, July 18th. HC Wainwright restated a “buy” rating and set a $20.00 price target on shares of Red Cat in a report on Friday, August 7th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a report on Friday, July 17th.

Red Cat Stock Performance

Shares of NASDAQ:RCAT opened at $11.13 on Monday. The firm’s 50 day moving average is $9.51 and its two-hundred day moving average is $11.64. The firm has a market capitalization of $1.37 billion, a P/E ratio of -13.74 and a beta of 1.32. Red Cat has a 52 week low of $5.77 and a 52 week high of $18.78.

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 analysts’ consensus estimates of ($0.21) by ($0.05). The business had revenue of $20.20 million for the quarter, compared to analyst estimates of $22.65 million. Red Cat had a negative return on equity of 32.25% and a negative net margin of 136.26%. Analysts predict that Red Cat will post -0.78 EPS for the current year.

Red Cat News Roundup

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 Buying and Selling 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 transaction of $210,200.00. Following the completion of the transaction, the director owned 200,502 shares of the company’s stock, valued at approximately $2,107,276.02. The trade was a 9.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the business’s stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $10.63, for a total value of $584,650.00. Following 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. Insiders sold 240,028 shares of company stock worth $2,692,672 over the last ninety days. Company insiders own 12.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. 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 in the 4th quarter valued at $1,705,000. Janus Henderson Group PLC boosted its holdings in Red Cat by 733.7% in the 1st quarter. Janus Henderson Group PLC now owns 392,808 shares of the company’s stock valued at $5,141,000 after purchasing an additional 345,693 shares during the period. Empowered Funds LLC acquired a new stake in Red Cat in the 1st quarter worth $2,232,000. Finally, Caitong International Asset Management Co. Ltd grew its position in 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 purchasing an additional 51,339 shares during the last quarter. 37.97% of the stock is owned by institutional investors.

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.