Red Cat (NASDAQ:RCAT) Trading 6.2% Higher – What’s Next?

Posted by Stanley Muller on Aug 9th, 2026

Red Cat Holdings, Inc. (NASDAQ:RCAT – Get Free Report) shares rose 6.2% on Friday . The company traded as high as $9.31 and last traded at $9.21. Approximately 10,143,291 shares changed hands during trading, a decline of 27% from the average session volume of 13,952,317 shares. The stock had previously closed at $8.67.

Key Headlines Impacting Red Cat

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

Positive Sentiment: HC Wainwright reaffirmed its Buy rating and maintained a $20 price target, implying substantial upside from the recent share price. The endorsement suggests the firm remains confident in Red Cat’s growth prospects. Benzinga article
Positive Sentiment: Red Cat reported 527% year-over-year revenue growth for the second quarter. Gross margin rose 39% from the prior-year quarter and increased 27% sequentially, indicating improving operating performance and demand for its drone products. Business Insider article
Neutral Sentiment: Management guided for fiscal 2026 revenue of $150 million to $180 million, broadly surrounding the $155.4 million analyst consensus. The range signals continued expansion but does not clearly represent a major forecast upgrade.
Neutral Sentiment: Needham lowered its price target from $20 to $15 while retaining a Buy rating. The target reduction reflects more cautious valuation assumptions, though the firm still sees meaningful upside. The Fly article
Negative Sentiment: Second-quarter results fell short of expectations: Red Cat reported an adjusted loss of $0.26 per share versus the expected $0.21 loss, while revenue of $20.2 million missed the $22.65 million consensus. The company remains deeply unprofitable, which could pressure the stock despite its growth rate. Zacks article

Analyst Upgrades and Downgrades

Several brokerages recently commented on RCAT. HC Wainwright reissued a “buy” rating and issued a $20.00 price target on shares of Red Cat in a research note on Friday. Roth Capital started coverage on shares of Red Cat in a research report on Monday, June 1st. They set a “buy” rating and a $25.00 price objective on the stock. Needham & Company LLC reduced their target price on shares of Red Cat from $20.00 to $15.00 and set a “buy” rating for the company in a research note on Friday. UBS Group assumed coverage on shares of Red Cat in a research report on Wednesday, May 27th. They issued a “buy” rating for the company. Finally, LADENBURG THALM/SH SH upgraded shares of Red Cat to a “strong-buy” rating in a research note on Wednesday, May 6th. Two 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. Based on data from MarketBeat.com, the stock has a consensus rating of “Buy” and a consensus target price of $20.40.

Read Our Latest Report on RCAT

Red Cat Stock Up 6.2%

The company has a market cap of $1.13 billion, a price-to-earnings ratio of -11.37 and a beta of 1.31. The business has a 50-day simple moving average of $9.89 and a two-hundred day simple moving average of $11.83.

Red Cat (NASDAQ:RCAT – Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported ($0.26) EPS for the quarter, missing analysts’ consensus estimates of ($0.21) by ($0.05). Red Cat had a negative net margin of 136.26% and a negative return on equity of 39.64%. The company had revenue of $20.20 million for the quarter, compared to analyst estimates of $22.65 million. As a group, equities analysts anticipate that Red Cat Holdings, Inc. will post -0.68 earnings per share for the current year.

Insider Transactions at Red Cat

In other Red Cat news, Director Paul Funk II sold 165,028 shares of the 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 sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 12.50% of the stock is owned by insiders.

Institutional Trading of Red Cat

Large investors have recently modified their holdings of the company. Arizona State Retirement System grew its stake in Red Cat by 3.0% in the 4th quarter. Arizona State Retirement System now owns 29,311 shares of the company’s stock valued at $232,000 after buying an additional 855 shares during the last quarter. CoreCap Advisors LLC boosted its holdings in Red Cat by 13.8% during the second quarter. CoreCap Advisors LLC now owns 9,039 shares of the company’s stock valued at $96,000 after acquiring an additional 1,095 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. boosted its holdings in 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 valued at $1,325,000 after acquiring an additional 1,147 shares during the period. Advisory Services Network LLC grew its position in shares of 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 shares of Red Cat by 4.5% in the first quarter. Western Wealth Management LLC now owns 36,722 shares of the company’s stock valued at $481,000 after purchasing an additional 1,570 shares during the last quarter. 37.97% of the stock is owned by institutional investors.

Red Cat Company Profile

(Get Free Report)

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.