Northland Securities Forecasts Stronger Earnings for Red Cat

Red Cat Holdings, Inc. (NASDAQ:RCAT) – Analysts at Northland Securities upped their Q2 2026 EPS estimates for Red Cat in a research note issued on Thursday, July 2nd. Northland Securities analyst M. Latimore now expects that the company will post earnings of ($0.19) per share for the quarter, up from their previous estimate of ($0.21). 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 ($0.13) EPS, Q4 2026 earnings at ($0.12) EPS, FY2026 earnings at ($0.67) EPS, Q1 2027 earnings at ($0.16) EPS, Q2 2027 earnings at ($0.14) EPS, Q3 2027 earnings at ($0.09) EPS, Q4 2027 earnings at ($0.03) EPS and FY2027 earnings at ($0.42) EPS.

Red Cat (NASDAQ:RCAT) last announced its earnings results on Thursday, May 7th. The company reported ($0.22) 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 analysts’ expectations of $17.63 million. Red Cat had a negative net margin of 138.36% and a negative return on equity of 35.86%. The firm’s quarterly revenue was up 849.1% compared to the same quarter last year.

A number of other brokerages have also recently commented on RCAT. Roth Mkm initiated coverage on Red Cat in a report on Monday, June 1st. They issued a “buy” rating and a $25.00 target price on the stock. LADENBURG THALM/SH SH raised Red Cat to a “strong-buy” rating in a report on Wednesday, May 6th. UBS Group started coverage on Red Cat in a research report on Wednesday, May 27th. They issued a “buy” rating for the company. Wall Street Zen raised Red Cat from a “strong sell” rating to a “sell” rating in a research note on Saturday, June 27th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Red Cat in a research report on Tuesday, April 21st. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Buy” and a consensus price target of $21.40.

Red Cat Price Performance

Shares of RCAT stock opened at $9.93 on Tuesday. Red Cat has a 1 year low of $5.77 and a 1 year high of $18.78. The firm has a fifty day moving average price of $11.01 and a 200-day moving average price of $12.14. The company has a market cap of $1.22 billion, a price-to-earnings ratio of -14.02 and a beta of 1.29.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. IFP Advisors Inc lifted its holdings in shares of Red Cat by 181.1% in the third quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock worth $28,000 after buying an additional 1,720 shares in the last quarter. Fifth Third Bancorp purchased a new position in Red Cat during the first quarter valued at $33,000. California State Teachers Retirement System bought a new stake in Red Cat in the 2nd quarter valued at $34,000. NFSG Corp lifted its stake in Red Cat by 200.0% in the 1st quarter. NFSG Corp now owns 3,000 shares of the company’s stock worth $39,000 after purchasing an additional 2,000 shares in the last quarter. Finally, PNC Financial Services Group Inc. boosted its holdings in shares of Red Cat by 294.6% during the 1st 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 last quarter. 37.97% of the stock is currently owned by institutional investors.

Insider Transactions at Red Cat

In other Red Cat news, Director Paul Funk II sold 165,028 shares of the firm’s 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 transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 12.50% of the company’s stock.

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.