Red Cat (NASDAQ:RCAT) Trading 7.5% Higher on Analyst Upgrade

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price shot up 7.5% during mid-day trading on Tuesday after LADENBURG THALM/SH SH raised their price target on the stock from $15.00 to $20.00. LADENBURG THALM/SH SH currently has a buy rating on the stock. Red Cat traded as high as $16.09 and last traded at $14.70. 36,897,691 shares were traded during mid-day trading, an increase of 160% from the average session volume of 14,169,979 shares. The stock had previously closed at $13.67.

Other equities research analysts have also issued reports about the stock. Northland Securities set a $22.00 price objective on shares of Red Cat in a research report on Tuesday, January 20th. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a research note on Thursday, January 22nd. Finally, Needham & Company LLC reissued a “buy” rating and set a $16.00 price target on shares of Red Cat in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $19.33.

More Red Cat News

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

• Positive Sentiment: Ladenburg Thalm/SH raised its price target on RCAT from $15 to $20 and initiated/maintained a “buy” stance, implying ~37% upside from the referenced price — a clear upgrade that likely pushed buyers into the stock. Benzinga
• Positive Sentiment: Needham & Company reaffirmed its “buy” rating with a $16 price target, reinforcing analyst support and adding upside conviction from the sell-side. Benzinga
• Positive Sentiment: Unusually large options activity: traders bought ~28,662 calls (about 31% above typical volume), signaling speculative bullish positioning and short-term demand for upside exposure.
• Positive Sentiment: Allen Control Systems joined Red Cat’s Futures Initiative to integrate ACS’s Bullfrog autonomous weapon station with Red Cat’s ISR and C2 platforms — a partnership that strengthens product interoperability for counter-drone and precision defense customers. GlobeNewswire
• Positive Sentiment: Geopolitical developments (U.S.-Israel strike on Iran / broader Iran conflict) are cited by analysts and media as boosting short-term demand for drones and defense systems, providing a favorable macro tailwind for RCAT. The Motley Fool
• Neutral Sentiment: Coverage pieces note recent large share-price swings and elevated volatility for RCAT — the stock has seen rapid gains over months but also short-term pullbacks, which increases risk/reward for traders. Yahoo Finance
• Negative Sentiment: Sector volatility: coverage of peers (e.g., AeroVironment) shows sharp moves and program-specific headwinds that can spill over to investor sentiment in the drone/defense group, creating downside risk if contract or funding news is negative. Yahoo Finance

Institutional Investors Weigh In On Red Cat

A number of institutional investors have recently bought and sold shares of the stock. Moors & Cabot Inc. lifted its stake in shares of Red Cat by 65.6% during the second quarter. Moors & Cabot Inc. now owns 280,825 shares of the company’s stock worth $2,044,000 after purchasing an additional 111,225 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. boosted its holdings in Red Cat by 31.1% in the 2nd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 157,704 shares of the company’s stock worth $1,148,000 after acquiring an additional 37,407 shares during the period. Rockefeller Capital Management L.P. acquired a new stake in Red Cat in the second quarter valued at approximately $546,000. AWM Investment Company Inc. raised its stake in shares of Red Cat by 15.3% during the second quarter. AWM Investment Company Inc. now owns 2,037,616 shares of the company’s stock valued at $14,834,000 after purchasing an additional 269,942 shares during the period. Finally, Kornitzer Capital Management Inc. KS acquired a new position in shares of Red Cat during the third quarter worth $880,000. 37.97% of the stock is currently owned by hedge funds and other institutional investors.

Red Cat Price Performance

The firm has a market capitalization of $1.75 billion, a price-to-earnings ratio of -33.41 and a beta of 1.50. The business’s 50-day moving average price is $12.24 and its 200 day moving average price is $10.58.

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.