Red Cat (NASDAQ:RCAT) Trading Down 2% – Time to Sell?

Posted by Brian Himes on Sep 6th, 2026

Red Cat Holdings, Inc. (NASDAQ:RCAT – Get Free Report)’s stock price was down 2% during trading on Friday . The company traded as low as $8.24 and last traded at $8.37. Approximately 5,067,935 shares were traded during mid-day trading, a decline of 62% from the average session volume of 13,281,207 shares. The stock had previously closed at $8.54.

Analysts Set New Price Targets

Several brokerages have weighed in on RCAT. Needham & Company LLC dropped their price target on shares of Red Cat from $20.00 to $15.00 and set a “buy” rating for the company in a research report on Friday, August 7th. Piper Sandler started coverage on Red Cat in a research report on Wednesday. They set a “neutral” rating and a $9.00 price objective for the company. Evercore began coverage on shares of Red Cat in a research note on Monday, August 31st. They set an “outperform” rating and a $15.00 price objective on the stock. Weiss Ratings restated a “sell (d-)” rating on shares of Red Cat in a report on Friday, July 17th. Finally, Roth Capital started coverage on shares of Red Cat in a research note on Monday, June 1st. They set a “buy” rating and a $25.00 target price for the company. Two equities research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Red Cat presently has a consensus rating of “Moderate Buy” and a consensus target price of $18.00.

Get Our Latest Stock Analysis on RCAT

Red Cat Price Performance

The company has a 50 day moving average price of $8.98 and a two-hundred day moving average price of $11.21. The stock has a market cap of $1.03 billion, a PE ratio of -10.33 and a beta of 1.35.

Red Cat (NASDAQ:RCAT – Get Free Report) last posted its 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 company had revenue of $20.20 million for the quarter, compared to the consensus estimate of $22.65 million. As a group, equities analysts predict that Red Cat Holdings, Inc. will post -0.77 earnings per share for the current fiscal year.

Insider Activity at Red Cat

In related news, Director Christopher Moe sold 20,000 shares of the stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total transaction of $210,200.00. Following the transaction, the director owned 200,502 shares in the company, valued at $2,107,276.02. This represents a 9.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Paul Funk, II sold 165,028 shares of Red Cat 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 disclosure for this sale is available in the SEC filing. Insiders have sold a total of 240,028 shares of company stock worth $2,692,672 over the last quarter. Company insiders own 12.50% of the company’s stock.

Institutional Trading of Red Cat

A number of hedge funds have recently bought and sold shares of RCAT. Allworth Financial LP purchased a new position in Red Cat in the second quarter worth about $28,000. IFP Advisors Inc increased its position in shares of Red Cat by 181.1% during the 3rd quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock valued at $28,000 after purchasing an additional 1,720 shares during the last quarter. Fifth Third Bancorp purchased a new stake in shares of Red Cat during the 1st quarter valued at about $33,000. California State Teachers Retirement System bought a new position in shares of Red Cat in the 2nd quarter worth approximately $34,000. Finally, NFSG Corp lifted its stake in shares of 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 during the period. Hedge funds and other institutional investors own 37.97% of the company’s stock.

About Red Cat

(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.