Equities Analysts Offer Predictions for Red Cat Q3 Earnings

Red Cat Holdings, Inc. (NASDAQ:RCAT) – Stock analysts at Northland Securities decreased their Q3 2026 earnings estimates for Red Cat in a research report issued to clients and investors on Wednesday, September 16th. Northland Securities analyst M. Latimore now anticipates that the company will earn ($0.28) per share for the quarter, down from their prior estimate of ($0.22). The consensus estimate for Red Cat’s current full-year earnings is ($0.77) per share. Northland Securities also issued estimates for Red Cat’s Q4 2026 earnings at ($0.19) EPS, FY2026 earnings at ($0.95) EPS, Q1 2027 earnings at ($0.21) EPS, Q2 2027 earnings at ($0.20) EPS, Q4 2027 earnings at ($0.14) EPS and FY2027 earnings at ($0.73) EPS.

Several other equities analysts also recently commented on RCAT. Roth Capital assumed coverage on Red Cat in a research report on Monday, June 1st. They set a “buy” rating and a $25.00 target price for the company. Piper Sandler initiated coverage on Red Cat in a research note on Wednesday, September 2nd. They set a “neutral” rating and a $9.00 price objective for the company. UBS Group assumed coverage on shares of Red Cat in a research note on Wednesday, May 27th. They issued a “buy” rating on the stock. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Red Cat in a report on Friday, July 17th. Finally, Evercore started coverage on shares of Red Cat in a report on Monday, August 31st. They set an “outperform” rating and a $15.00 price target for the company. Two research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $16.71.

Red Cat Price Performance

Shares of RCAT opened at $7.09 on Friday. The company has a 50-day moving average price of $8.60 and a two-hundred day moving average price of $10.93. The stock has a market cap of $870.24 million, a price-to-earnings ratio of -8.75 and a beta of 1.35. 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, August 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.21) by ($0.05). Red Cat had a negative net margin of 136.26% and a negative return on equity of 32.25%. The firm had revenue of $20.20 million for the quarter, compared to the consensus estimate of $22.65 million.

Institutional Trading of Red Cat

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new position in shares of Red Cat in the 2nd quarter valued at about $119,610,000. Van ECK Associates Corp bought a new position in shares of Red Cat in the 2nd quarter worth $27,193,000. Renaissance Technologies LLC bought a new stake in Red Cat in the first quarter valued at about $18,533,000. AWM Investment Company Inc. bought a new stake in Red Cat in the second quarter valued at about $9,313,000. Finally, Bank of America Corp DE acquired a new position in Red Cat in the second quarter valued at about $9,211,000. 37.97% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other Red Cat news, Director Nicholas Liuzza, Jr. sold 55,000 shares of the company’s stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $10.63, for a total transaction of $584,650.00. Following the transaction, the director owned 489,874 shares of the company’s stock, valued at approximately $5,207,360.62. This represents a 10.09% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Christopher Moe sold 20,000 shares of Red Cat stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total value of $210,200.00. Following the completion of the sale, the director directly owned 200,502 shares of the company’s stock, valued at $2,107,276.02. This trade represents a 9.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 225,000 shares of company stock worth $1,955,850 in the last quarter. Insiders own 12.50% of the company’s stock.

Key Stories Impacting Red Cat

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

• Positive Sentiment: Red Cat continues to attract bullish analyst coverage: the consensus rating remains “Moderate Buy,” with an average price target of $16.71 versus the current share price. Some analysts cite potential upside from the company’s AI-enabled defense and drone businesses. Red Cat Holdings Faces a 65% Undervalued View
• Neutral Sentiment: CEO Jeffrey Thompson sold 150,000 shares for approximately $1.16 million at an average price of $7.74. The sale reduced his direct stake by about 1.26% and was executed under a pre-arranged Rule 10b5-1 plan, making it a less significant bearish signal; he still owns more than 11.7 million shares. SEC Insider Transaction Filing
• Negative Sentiment: Northland Securities reduced its FY2026 EPS forecast to a loss of $0.95 from $0.84 and its FY2027 forecast to a loss of $0.73 from $0.70. The firm also lowered estimates for Q3 and Q4 2026 and Q2 and Q4 2027, although it modestly improved its Q1 2027 estimate to a $0.21 loss from $0.22.
• Negative Sentiment: Recent coverage highlights execution risk during Red Cat’s ambitious AI-defense ramp-up. That concern is particularly important because the company’s latest reported quarter missed both EPS and revenue expectations, while analysts currently expect another full-year loss of approximately $0.77 per share. Red Cat Is Down After Mixed Results on AI-Defense Ramp-Up Plans

About Red Cat

Red Cat Holdings, Inc is a drone technology company that develops and supplies small unmanned aircraft systems for military, government, public safety and commercial applications. Its solutions are designed to support intelligence, surveillance and reconnaissance, situational awareness, and other missions requiring portable and rapidly deployable aerial systems.

Through its Teal Drones business, Red Cat offers the Teal 2 and related Black Widow systems, compact drones designed for defense and public-safety users.