Red Cat Q3 EPS Estimate Increased by Northland Securities

Red Cat Holdings, Inc. (NASDAQ:RCAT) – Investment analysts at Northland Securities raised their Q3 2026 earnings per share estimates for shares of Red Cat in a research report issued to clients and investors on Thursday, March 19th. Northland Securities analyst M. Latimore now forecasts that the company will post earnings per share of ($0.09) for the quarter, up from their prior forecast of ($0.10). The consensus estimate for Red Cat’s current full-year earnings is ($0.50) per share. Northland Securities also issued estimates for Red Cat’s Q4 2026 earnings at ($0.05) EPS and FY2026 earnings at ($0.41) EPS.

Other analysts also recently issued research reports about the stock. Needham & Company LLC upped their price target on shares of Red Cat from $16.00 to $20.00 and gave the company a “buy” rating in a research report on Thursday. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a research report on Thursday, January 22nd. Wall Street Zen upgraded shares of Red Cat from a “sell” rating to a “hold” rating in a research note on Saturday. Finally, LADENBURG THALM/SH SH upped their target price on shares of Red Cat from $15.00 to $20.00 and gave the company a “buy” rating in a report on Tuesday, March 3rd. Two research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Red Cat has an average rating of “Hold” and an average price target of $20.67.

Red Cat Trading Down 12.5%

Shares of RCAT opened at $13.25 on Monday. The firm has a market cap of $1.61 billion, a PE ratio of -17.67 and a beta of 1.53. The company’s 50 day simple moving average is $13.90 and its 200-day simple moving average is $11.19. Red Cat has a 12-month low of $4.60 and a 12-month high of $18.78.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings results on Wednesday, March 18th. The company reported ($0.17) EPS for the quarter, missing the consensus estimate of ($0.14) by ($0.03). Red Cat had a negative return on equity of 38.86% and a negative net margin of 176.96%.The firm had revenue of $26.24 million for the quarter, compared to analyst estimates of $24.50 million.

Institutional Investors Weigh In On Red Cat

Several large investors have recently modified their holdings of the stock. State Street Corp lifted its holdings in shares of Red Cat by 136.4% during the fourth quarter. State Street Corp now owns 6,612,153 shares of the company’s stock worth $52,434,000 after purchasing an additional 3,815,310 shares during the period. Brevan Howard Capital Management LP acquired a new position in Red Cat in the 3rd quarter valued at $19,739,000. Vanguard Group Inc. increased its stake in Red Cat by 43.9% in the 3rd quarter. Vanguard Group Inc. now owns 5,506,377 shares of the company’s stock valued at $56,991,000 after buying an additional 1,680,929 shares during the period. Davidson Kempner Capital Management LP purchased a new position in Red Cat during the 3rd quarter worth $17,286,000. Finally, CenterBook Partners LP lifted its stake in shares of Red Cat by 1,872.4% in the 4th quarter. CenterBook Partners LP now owns 1,105,132 shares of the company’s stock worth $8,764,000 after acquiring an additional 1,049,101 shares during the period. Hedge funds and other institutional investors own 37.97% of the company’s stock.

Key Headlines Impacting Red Cat

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

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.