Red Cat (NASDAQ:RCAT) Price Target Cut to $15.00 by Analysts at Needham & Company LLC

Red Cat (NASDAQ:RCAT) had its price objective cut by Needham & Company LLC from $20.00 to $15.00 in a research report sent to investors on Friday morning, Marketbeat.com reports. They currently have a buy rating on the stock.

A number of other brokerages have also issued reports on RCAT. HC Wainwright reaffirmed a “buy” rating and set a $20.00 target price on shares of Red Cat in a research report on Friday. Wall Street Zen downgraded Red Cat from a “sell” rating to a “strong sell” rating in a report on Saturday, July 18th. LADENBURG THALM/SH SH upgraded Red Cat to a “strong-buy” rating in a research note on Wednesday, May 6th. Clear Str upgraded Red Cat to a “strong-buy” rating in a report on Wednesday, April 29th. Finally, Roth Capital started coverage on Red Cat in a research note on Monday, June 1st. They set a “buy” rating and a $25.00 target price for the company. Two investment analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Red Cat has an average rating of “Buy” and an average target price of $20.40.

Red Cat Trading Up 6.2%

RCAT opened at $9.21 on Friday. The company has a fifty day simple moving average of $9.89 and a 200 day simple moving average of $11.83. 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 twelve month low of $5.77 and a twelve month high of $18.78.

Red Cat (NASDAQ:RCAT) last released 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 firm had revenue of $20.20 million for the quarter, compared to analysts’ expectations of $22.65 million. Red Cat had a negative return on equity of 39.64% and a negative net margin of 136.26%. On average, analysts forecast that Red Cat will post -0.68 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Red Cat news, Director Paul Funk II sold 165,028 shares of the firm’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 legal filing with the SEC, which is available at this link. 12.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Red Cat

Several hedge funds and other institutional investors have recently modified their holdings of the company. IFP Advisors Inc boosted its stake in Red Cat by 181.1% during the 3rd quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock valued at $28,000 after purchasing an additional 1,720 shares during the period. Fifth Third Bancorp bought a new stake in shares of Red Cat in the 1st quarter worth $33,000. California State Teachers Retirement System bought a new position in shares of Red Cat during the 2nd quarter valued at about $34,000. NFSG Corp boosted its holdings in Red Cat by 200.0% during the first quarter. NFSG Corp now owns 3,000 shares of the company’s stock worth $39,000 after buying an additional 2,000 shares in the last quarter. Finally, PNC Financial Services Group Inc. increased its holdings in shares of Red Cat by 294.6% in the first quarter. PNC Financial Services Group Inc. now owns 3,042 shares of the company’s stock valued at $40,000 after buying an additional 2,271 shares in the last quarter. Institutional investors and hedge funds own 37.97% of the company’s stock.

Red Cat News Roundup

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

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.