Northland Securities Predicts Weaker Earnings for Red Cat

Red Cat Holdings, Inc. (NASDAQ:RCAT) – Analysts at Northland Securities lowered their Q2 2026 earnings per share estimates for Red Cat in a research report issued to clients and investors on Thursday, July 23rd. Northland Securities analyst M. Latimore now expects that the company will earn ($0.21) per share for the quarter, down from their prior estimate of ($0.19). The consensus estimate for Red Cat’s current full-year earnings is ($0.68) per share. Northland Securities also issued estimates for Red Cat’s Q3 2026 earnings at ($0.15) EPS, Q4 2026 earnings at ($0.15) EPS, FY2026 earnings at ($0.73) EPS, Q1 2027 earnings at ($0.18) EPS, Q2 2027 earnings at ($0.17) EPS, Q3 2027 earnings at ($0.10) EPS, Q4 2027 earnings at ($0.04) EPS and FY2027 earnings at ($0.49) EPS.

A number of other brokerages have also weighed in on RCAT. HC Wainwright initiated coverage on shares of Red Cat in a report on Wednesday, May 27th. They set a “buy” rating and a $20.00 price objective for the company. Wall Street Zen downgraded Red Cat from a “sell” rating to a “strong sell” rating in a report on Saturday, July 18th. Clear Str upgraded shares of Red Cat to a “strong-buy” rating in a report on Wednesday, April 29th. UBS Group assumed coverage on Red Cat in a research note on Wednesday, May 27th. They issued a “buy” rating on the stock. Finally, LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a report on Wednesday, May 6th. Two research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Buy” and an average price target of $21.40.

Red Cat Trading Down 0.1%

Shares of RCAT opened at $7.63 on Monday. The firm has a fifty day moving average price of $10.34 and a 200-day moving average price of $12.13. The firm has a market capitalization of $936.51 million, a P/E ratio of -10.90 and a beta of 1.29. Red Cat has a 12-month low of $5.77 and a 12-month high of $18.78.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings results on Thursday, May 7th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.12) by ($0.10). The business had revenue of $15.47 million for the quarter, compared to the consensus estimate of $17.63 million. Red Cat had a negative return on equity of 35.86% and a negative net margin of 138.36%.Red Cat’s quarterly revenue was up 849.1% on a year-over-year basis.

Insider Transactions at Red Cat

In other Red Cat news, Director Paul Funk II sold 165,028 shares of Red Cat stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $11.50, for a total transaction of $1,897,822.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. 12.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On Red Cat

A number of institutional investors and hedge funds have recently modified their holdings of the company. Arizona State Retirement System increased its holdings in Red Cat by 3.0% in the 4th quarter. Arizona State Retirement System now owns 29,311 shares of the company’s stock worth $232,000 after buying an additional 855 shares during the period. CoreCap Advisors LLC increased its stake in shares of Red Cat by 13.8% in the second quarter. CoreCap Advisors LLC now owns 9,039 shares of the company’s stock worth $96,000 after acquiring an additional 1,095 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. raised its holdings in shares of Red Cat by 0.7% during the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 167,084 shares of the company’s stock worth $1,325,000 after purchasing an additional 1,147 shares during the last quarter. Advisory Services Network LLC boosted its holdings in Red Cat by 5.3% in the third quarter. Advisory Services Network LLC now owns 30,200 shares of the company’s stock valued at $313,000 after purchasing an additional 1,507 shares during the last quarter. Finally, Western Wealth Management LLC grew its position in Red Cat by 4.5% during the 1st quarter. Western Wealth Management LLC now owns 36,722 shares of the company’s stock worth $481,000 after purchasing an additional 1,570 shares during the period. 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: Red Cat announced it completed integration of its Black Widow™ drone with C3A Solutions’ OBERON-enabled tactical fires networks, expanding Black Widow’s role as a forward ISR sensor for defense customers and reinforcing the company’s military interoperability story. Article Title
• Neutral Sentiment: Short interest data showed no meaningful change in reported short interest, suggesting the latest trading pressure is being driven more by fundamentals and company-specific headlines than by a clear short-selling shift.
• Neutral Sentiment: Several recent write-ups argued that RCAT may still be overvalued after a strong multi-year run, with valuation models suggesting much of the upside could already be priced in. Article Title
• Negative Sentiment: Investor sentiment was hurt by news that Red Cat terminated Chief Revenue Officer Geoffrey Hitchcock for cause, followed by a civil complaint alleging retaliatory termination and contract breaches, raising governance and internal-control concerns. Article Title
• Negative Sentiment: Recent commentary also pointed to insider selling, a weak recent share-price trend, and uncertainty ahead of earnings, all of which can weigh on near-term sentiment toward RCAT. Article Title

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.