Q3 EPS Estimates for Red Cat Reduced by Northland Securities

Red Cat Holdings, Inc. (NASDAQ:RCAT) – Investment analysts at Northland Securities decreased their Q3 2026 earnings per share (EPS) estimates for shares of Red Cat in a research report issued on Friday, August 7th. Northland Securities analyst M. Latimore now anticipates that the company will post earnings of ($0.22) per share for the quarter, down from their prior forecast of ($0.15). 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 FY2026 earnings at ($0.84) EPS, Q1 2027 earnings at ($0.22) EPS, Q2 2027 earnings at ($0.18) EPS, Q3 2027 earnings at ($0.19) EPS, Q4 2027 earnings at ($0.11) EPS and FY2027 earnings at ($0.70) EPS.

A number of other equities research analysts have also recently commented on the company. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a research note on Friday, July 17th. UBS Group began coverage on shares of Red Cat in a research note on Wednesday, May 27th. They issued a “buy” rating on the stock. Clear Str upgraded shares of Red Cat to a “strong-buy” rating in a research note on Wednesday, April 29th. Roth Capital initiated coverage on Red Cat in a research report on Monday, June 1st. They issued a “buy” rating and a $25.00 price objective on the stock. Finally, Needham & Company LLC decreased their price objective on shares of Red Cat from $20.00 to $15.00 and set a “buy” rating for the company in a report on Friday. Two investment analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Red Cat presently has a consensus rating of “Buy” and a consensus target price of $20.40.

Red Cat Stock Up 8.6%

Shares of RCAT stock opened at $10.00 on Tuesday. The business’s fifty day moving average is $9.79 and its 200 day moving average is $11.79. The stock has a market cap of $1.23 billion, a price-to-earnings ratio of -12.35 and a beta of 1.32. Red Cat has a twelve month low of $5.77 and a twelve month high of $18.78.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.26) earnings per share for the quarter, missing the consensus estimate of ($0.21) by ($0.05). The business had revenue of $20.20 million during the quarter, compared to analysts’ expectations of $22.65 million. Red Cat had a negative return on equity of 39.64% and a negative net margin of 136.26%.

Insider Buying and Selling

In other Red Cat news, Director Paul Funk II sold 165,028 shares of the firm’s stock in a transaction that occurred on 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 Securities & Exchange Commission, which is available at this link. Insiders own 12.50% of the company’s stock.

Hedge Funds Weigh In On Red Cat

Several institutional investors have recently bought and sold shares of RCAT. Csenge Advisory Group purchased a new position in shares of Red Cat in the 2nd quarter worth $256,000. Wealthfront Advisers LLC bought a new position in shares of Red Cat in the 2nd quarter valued at about $210,000. Main Street Financial Solutions LLC bought a new position in shares of Red Cat in the 2nd quarter valued at about $109,000. BlackRock Inc. purchased a new position in Red Cat in the second quarter worth about $119,610,000. Finally, Pallas Capital Advisors LLC bought a new stake in Red Cat during the second quarter worth approximately $166,000. 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: Red Cat announced a multiyear partnership with the Washington Commanders focused on military appreciation initiatives, community events and NFL-season marketing. The agreement could improve brand awareness and reinforce Red Cat’s defense-oriented identity, although it does not include disclosed financial terms. Red Cat Announces Multiyear Partnership with Washington Commanders
• Positive Sentiment: Analyst sentiment remains favorable: Red Cat received an average “Buy” rating, while HC Wainwright reiterated its “Buy” recommendation. Previously reported analyst price targets were materially above the stock’s recent trading level, supporting the rebound narrative. Red Cat Receives Average Rating of Buy Red Cat Buy Rating Reiterated at HC Wainwright
• Positive Sentiment: Unusually high options activity may be adding speculative buying pressure. Traders purchased 52,096 call options, roughly 92% above typical daily call volume, signaling increased bullish interest but not guaranteed future gains.
• Neutral Sentiment: Strength in peer Unusual Machines and broader drone-stock momentum suggests RCAT is benefiting from a sector-wide trade rather than company-specific fundamentals alone. Unusual Machines Stock Is Climbing
• Negative Sentiment: Recent earnings remain a fundamental risk. Red Cat missed quarterly EPS and revenue expectations, with a negative net margin and analysts forecasting a full-year loss, making the rally vulnerable if growth or defense bookings disappoint. Red Cat Stock May Stay Stretched Despite Strong Revenue Growth
• Negative Sentiment: The stock may remain stretched after its post-earnings rebound, while reported insider activity showed sales and no purchases during the past six months—signals that could temper investor confidence.

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.