Red Cat (NASDAQ:RCAT) Trading Up 2.5% – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price was up 2.5% during trading on Friday . The company traded as high as $14.70 and last traded at $14.50. Approximately 36,676,562 shares traded hands during mid-day trading, an increase of 139% from the average daily volume of 15,335,614 shares. The stock had previously closed at $14.15.

More Red Cat News

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

• Positive Sentiment: RCAT is benefiting from reports that the U.S. government may direct funding toward domestic drone makers, a potentially major tailwind for the entire sector. Article Title
• Positive Sentiment: Red Cat announced that its Blue Ops maritime division has moved into full-rate production of the Variant 7 uncrewed surface vessel, reinforcing investor optimism about commercial traction and execution across air, land, and sea. Article Title
• Positive Sentiment: HC Wainwright reiterated a Buy rating and a $20 price target, signaling Wall Street sees meaningful upside despite ongoing losses. Article Title
• Positive Sentiment: Unusual call buying and elevated trading volume suggest speculative demand is also helping fuel the move in RCAT shares. Article Title
• Neutral Sentiment: Analyst earnings estimates remain negative for 2026-2029, but improve over time, with HC Wainwright modeling a return to profit by FY2030. Article Title

Analyst Ratings Changes

A number of equities analysts recently commented on RCAT shares. Clear Str raised shares of Red Cat to a “strong-buy” rating in a research note on Wednesday, April 29th. HC Wainwright initiated coverage on Red Cat in a research report on Wednesday. They set a “buy” rating and a $20.00 price target on the stock. Needham & Company LLC upped their price target on Red Cat from $16.00 to $20.00 and gave the stock a “buy” rating in a research report on Thursday, March 19th. Wall Street Zen downgraded Red Cat from a “hold” rating to a “sell” rating in a research report on Saturday, May 2nd. Finally, UBS Group initiated coverage on Red Cat in a research report on Wednesday. They set a “buy” rating on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, Red Cat currently has an average rating of “Buy” and a consensus price target of $20.50.

Red Cat Trading Up 2.5%

The stock has a market capitalization of $1.78 billion, a price-to-earnings ratio of -20.71 and a beta of 1.21. The firm has a 50-day moving average of $11.95 and a 200-day moving average of $11.42.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings results on Thursday, May 7th. The company reported ($0.22) EPS for the quarter, missing the consensus estimate of ($0.12) by ($0.10). Red Cat had a negative net margin of 138.36% and a negative return on equity of 35.86%. The business had revenue of $15.47 million during the quarter, compared to analysts’ expectations of $17.63 million. The firm’s revenue for the quarter was up 849.1% compared to the same quarter last year. On average, equities research analysts anticipate that Red Cat Holdings, Inc. will post -0.69 EPS for the current year.

Institutional Investors Weigh In On Red Cat

Several hedge funds have recently added to or reduced their stakes in the business. State Street Corp boosted its holdings in Red Cat by 136.4% in the fourth quarter. State Street Corp now owns 6,612,153 shares of the company’s stock valued at $52,434,000 after purchasing an additional 3,815,310 shares during the last quarter. Vanguard Group Inc. boosted its holdings in Red Cat by 9.0% in the fourth quarter. Vanguard Group Inc. now owns 6,000,037 shares of the company’s stock valued at $47,580,000 after purchasing an additional 493,660 shares during the last quarter. Geode Capital Management LLC boosted its holdings in Red Cat by 13.4% in the fourth quarter. Geode Capital Management LLC now owns 2,520,524 shares of the company’s stock valued at $19,991,000 after purchasing an additional 297,967 shares during the last quarter. Brevan Howard Capital Management LP purchased a new stake in Red Cat in the third quarter valued at $19,739,000. Finally, Davidson Kempner Capital Management LP purchased a new stake in Red Cat in the third quarter valued at $17,286,000. 37.97% of the stock is owned by hedge funds and other institutional investors.

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.