Royal Bank of Canada Acquires 183,905 Shares of Red Cat Holdings, Inc. $RCAT

Royal Bank of Canada lifted its stake in shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) by 74.1% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 432,005 shares of the company’s stock after buying an additional 183,905 shares during the quarter. Royal Bank of Canada owned about 0.35% of Red Cat worth $5,655,000 as of its most recent filing with the Securities & Exchange Commission.

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

Insiders Place Their Bets

In related 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 hyperlink. Insiders own 12.50% of the company’s stock.

Red Cat Trading Down 3.2%

RCAT opened at $10.32 on Thursday. The company’s fifty day moving average price is $9.64 and its two-hundred day moving average price is $11.70. Red Cat Holdings, Inc. has a 1-year low of $5.77 and a 1-year high of $18.78. The company has a market cap of $1.27 billion, a price-to-earnings ratio of -12.74 and a beta of 1.31.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.26) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.21) by ($0.05). The business had revenue of $20.20 million during the quarter, compared to the consensus estimate of $22.65 million. Red Cat had a negative net margin of 136.26% and a negative return on equity of 39.64%. As a group, equities analysts forecast that Red Cat Holdings, Inc. will post -0.76 earnings per share for the current fiscal year.

More Red Cat News

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

• Positive Sentiment: Red Cat promoted Mitch McDonald to Divisional CEO of its unmanned aircraft systems operations. He will oversee Teal Drones and FlightWave Aerospace under one leadership structure, which the company says should improve coordination, manufacturing scale and operational efficiency as demand from U.S. and allied defense customers grows. Red Cat Promotes Mitch McDonald to Divisional CEO of its UAS Operations
• Positive Sentiment: HC Wainwright maintained a Buy rating and a $20 price target, substantially above the recent trading level, despite reducing several earnings forecasts. Institutional ownership trends were also broadly favorable, with State Street and other funds reporting sizable additions to their positions.
• Neutral Sentiment: Red Cat experienced unusually heavy options activity, suggesting elevated trading interest and potentially higher short-term volatility, but the available report did not identify a clear bullish or bearish directional signal. Red Cat Sees Unusually Large Options Volume
• Negative Sentiment: Northland Securities and HC Wainwright lowered EPS estimates across 2026-2030. Northland cut its FY2026 forecast to a $0.84 loss per share from $0.73 and FY2027 to a $0.70 loss from $0.49. HC Wainwright reduced its FY2026 estimate to a $0.89 loss and FY2027 to a $0.90 loss, indicating expectations for prolonged losses.
• Negative Sentiment: The revisions follow Red Cat’s latest quarterly results, which missed analyst expectations on both earnings and revenue: an EPS loss of $0.26 versus an expected $0.21 loss, and revenue of $20.2 million versus a $22.65 million estimate. The company remains unprofitable, with a negative net margin and return on equity.
• Negative Sentiment: Reported insider activity showed two open-market sales totaling roughly 315,000 shares and no purchases during the past six months, a potential signal of reduced insider conviction.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the stock. Clear Str raised shares of Red Cat to a “strong-buy” rating in a research report on Wednesday, April 29th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Red Cat in a research report on Friday, July 17th. LADENBURG THALM/SH SH raised Red Cat to a “strong-buy” rating in a research note on Wednesday, May 6th. HC Wainwright reiterated a “buy” rating and issued a $20.00 price target on shares of Red Cat in a report on Friday, August 7th. Finally, Needham & Company LLC reduced their price objective on Red Cat from $20.00 to $15.00 and set a “buy” rating for the company in a research note on Friday, August 7th. Two equities research 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 stock. According to MarketBeat.com, Red Cat has an average rating of “Buy” and an average price target of $20.40.

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.