Red Cat (NASDAQ:RCAT) Stock Price Up 8.8% – What’s Next?

Red Cat Holdings, Inc. (NASDAQ:RCAT) traded up 8.8% during mid-day trading on Friday . The stock traded as high as $11.76 and last traded at $11.13. Approximately 18,320,426 shares traded hands during mid-day trading, an increase of 32% from the average daily volume of 13,931,162 shares. The stock had previously closed at $10.23.

More Red Cat News

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

• Positive Sentiment: Red Cat is gaining alongside other domestic drone companies after reports that President Trump plans a 100% tariff on drones. Investors appear to view the measure as a potential boost for U.S.-based suppliers serving defense and government customers. Unusual Machines Soars, Red Cat Climbs and Ondas Gains on Trump’s Drone Tariff
• Positive Sentiment: The company promoted Mitch McDonald to divisional CEO of its unmanned aerial systems operations, bringing Teal Drones and FlightWave Aerospace under unified leadership. The move is intended to improve coordination, manufacturing scale and execution as defense demand grows. Red Cat Promotes Mitch McDonald to Divisional CEO of its UAS Operations
• Neutral Sentiment: Weakness in drone peer Ondas Holdings after its earnings report may create sector-wide volatility. However, Ondas’ Israeli defense tender win reinforces investor interest in the broader autonomous-defense market without providing direct revenue to RCAT. Ondas Drops After Earnings
• Negative Sentiment: Recent SEC-reported insider sales could temper enthusiasm. Director Christopher R. Moe sold a combined 30,000 shares, while Director Nicholas Reyland Liuzza Jr. sold 55,000 shares. The transactions reduced their reported holdings and may raise concerns about insider conviction, even though both directors retained substantial positions. Red Cat Director Stock Sale
• Negative Sentiment: Analysts reportedly reduced their third-quarter EPS expectations. That follows Red Cat’s latest quarterly miss, when it reported a loss of $0.26 per share versus an expected loss of $0.21 and revenue of $20.2 million versus $22.65 million expected. The company remains unprofitable, making execution and future defense orders important to the valuation.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on RCAT. Wall Street Zen cut shares of Red Cat from a “sell” rating to a “strong sell” rating in a research note on Saturday, July 18th. UBS Group began coverage on Red Cat in a research note on Wednesday, May 27th. They issued a “buy” rating on the stock. Roth Capital began coverage on Red Cat in a report on Monday, June 1st. They set a “buy” rating and a $25.00 target price on the stock. Clear Str upgraded Red Cat to a “strong-buy” rating in a report on Wednesday, April 29th. Finally, Needham & Company LLC dropped their price target on Red Cat from $20.00 to $15.00 and set a “buy” rating for the company in a research report on Friday, August 7th. Two investment analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Buy” and a consensus target price of $20.40.

Red Cat Price Performance

The company has a 50-day moving average of $9.51 and a two-hundred day moving average of $11.66. The stock has a market capitalization of $1.37 billion, a PE ratio of -13.74 and a beta of 1.31.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings results on Thursday, August 6th. The company reported ($0.26) EPS 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 net margin of 136.26% and a negative return on equity of 32.25%. On average, research analysts forecast that Red Cat Holdings, Inc. will post -0.78 EPS for the current fiscal year.

Insider Transactions at Red Cat

In related news, Director Paul Funk II sold 165,028 shares of the firm’s stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $11.50, for a total value of $1,897,822.00. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the business’s stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $10.63, for a total transaction of $584,650.00. Following the completion of the sale, the director owned 489,874 shares of the company’s stock, valued at approximately $5,207,360.62. The trade was a 10.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 240,028 shares of company stock worth $2,692,672 in the last three months. Company insiders own 12.50% of the company’s stock.

Institutional Trading of Red Cat

Institutional investors have recently made changes to their positions in the stock. Bank of America Corp DE increased its holdings in shares of Red Cat by 407.0% during the 4th quarter. Bank of America Corp DE now owns 3,397 shares of the company’s stock worth $44,000 after buying an additional 2,727 shares during the last quarter. Royal Bank of Canada boosted its holdings in Red Cat by 76.4% in the first quarter. Royal Bank of Canada now owns 57,800 shares of the company’s stock valued at $340,000 after acquiring an additional 25,031 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in Red Cat by 63.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 229,259 shares of the company’s stock valued at $1,348,000 after acquiring an additional 89,095 shares during the last quarter. Goldman Sachs Group Inc. grew its position in Red Cat by 28.7% during the first quarter. Goldman Sachs Group Inc. now owns 266,099 shares of the company’s stock valued at $1,565,000 after acquiring an additional 59,334 shares during the period. Finally, Cetera Investment Advisers purchased a new stake in Red Cat during the second quarter valued at about $97,000. 37.97% of the stock is owned by hedge funds and other institutional investors.

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.