Red Cat (NASDAQ:RCAT) Upgraded at Wall Street Zen

Red Cat (NASDAQ:RCAT) was upgraded by stock analysts at Wall Street Zen from a “sell” rating to a “hold” rating in a research note issued to investors on Saturday.

Several other analysts have also commented on the stock. LADENBURG THALM/SH SH increased their target price on shares of Red Cat from $15.00 to $20.00 and gave the company a “buy” rating in a research note on Tuesday, March 3rd. Needham & Company LLC upped their price target on Red Cat from $16.00 to $20.00 and gave the company a “buy” rating in a report on Thursday. Northland Securities set a $22.00 price objective on Red Cat in a research report on Tuesday, January 20th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a research note on Thursday, January 22nd. Two investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to MarketBeat.com, Red Cat has a consensus rating of “Hold” and an average price target of $20.67.

Red Cat Trading Down 12.5%

Shares of Red Cat stock opened at $13.25 on Friday. Red Cat has a 52 week low of $4.60 and a 52 week high of $18.78. The stock has a market cap of $1.58 billion, a PE ratio of -17.67 and a beta of 1.53. The company’s 50-day moving average price is $13.90 and its two-hundred day moving average price is $11.16.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings data on Wednesday, March 18th. The company reported ($0.17) earnings per share for the quarter, missing the consensus estimate of ($0.14) by ($0.03). The business had revenue of $26.24 million for the quarter, compared to the consensus estimate of $24.50 million. Red Cat had a negative net margin of 176.96% and a negative return on equity of 48.12%. On average, equities analysts predict that Red Cat will post -0.5 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Brevan Howard Capital Management LP acquired a new stake in shares of Red Cat during the third quarter valued at approximately $19,739,000. Rockefeller Capital Management L.P. purchased a new stake in shares of Red Cat in the 2nd quarter valued at approximately $546,000. AWM Investment Company Inc. boosted its stake in Red Cat by 15.3% in the 2nd quarter. AWM Investment Company Inc. now owns 2,037,616 shares of the company’s stock worth $14,834,000 after purchasing an additional 269,942 shares during the period. Kornitzer Capital Management Inc. KS acquired a new position in Red Cat in the 3rd quarter worth approximately $880,000. Finally, XTX Topco Ltd grew its position in Red Cat by 510.9% during the 2nd quarter. XTX Topco Ltd now owns 237,927 shares of the company’s stock worth $1,732,000 after purchasing an additional 198,982 shares in the last quarter. 37.97% of the stock is currently owned by institutional investors and hedge funds.

Red Cat News Roundup

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

• Positive Sentiment: Needham & Company raised its price target to $20 and maintained a “buy” rating, signaling upside potential from institutional coverage and contributing to investor optimism. Needham Price Target Raise
• Positive Sentiment: Northland Securities issued a buy on RCAT, adding another bullish broker stance that can support further interest from buy‑side investors. Red Cat Gets a Buy from Northland
• Positive Sentiment: Company reports record Q4 revenue and a 161% full‑year revenue increase, and says production capacity was expanded ~520%, which supports a growth narrative if the company can convert scale into margin improvement. Red Cat Reports Record Q4 Revenue
• Positive Sentiment: Recent sharp share moves have created momentum — RCAT showed strong 30‑day returns despite intra‑day selling, attracting momentum traders. Valuation Check After Sharp Swings
• Neutral Sentiment: Management has not provided formal FY26 guidance yet but says it’s comfortable in the top half of Street estimates; the timing of formal guidance (linked to a contract finalization) is a near‑term catalyst but remains uncertain. No Formal Guidance
• Neutral Sentiment: Unusually high options activity and elevated share volume suggest speculative positioning and increased short‑term volatility, which can amplify price moves in either direction. Unusually High Options Trading
• Neutral Sentiment: Recent earnings call and transcripts highlight product expansion (e.g., Black Widow, Maritime USVs) and production ramp efforts — strategic positives, but execution risk remains. Earnings Call Transcript
• Negative Sentiment: Q4 EPS missed estimates (reported -$0.17 vs. -$0.14 consensus) and the company shows a deeply negative net margin and ROE, stoking concerns that revenue growth has not yet translated into profitability. Earnings Details & EPS Miss
• Negative Sentiment: Analysts and commentators note Red Cat is still burning cash and in some cases selling units near cost to drive share, which pressures margins and raises questions about near‑term free cash flow. Revenue Jumps But Still Bleeds Cash
• Negative Sentiment: Coverage pieces pointed to a pullback after the big run — margin pressure and profit‑taking helped drive the stock lower today amid heavy volume. Why Red Cat Stock Got Declawed

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.