Red Cat (NASDAQ:RCAT) Trading Down 6.4% – Time to Sell?

Posted by Brenda Bartman on Sep 9th, 2026

Red Cat Holdings, Inc. (NASDAQ:RCAT – Get Free Report)’s share price fell 6.4% on Wednesday . The company traded as low as $8.11 and last traded at $8.13. Approximately 5,514,992 shares changed hands during trading, a decline of 58% from the average daily volume of 13,190,999 shares. The stock had previously closed at $8.69.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on RCAT. Roth Capital began coverage on Red Cat in a research report on Monday, June 1st. They set a “buy” rating and a $25.00 price target for the company. Needham & Company LLC decreased their price objective on Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a report on Friday, August 7th. Evercore began coverage on shares of Red Cat in a research note on Monday, August 31st. They issued an “outperform” rating and a $15.00 price objective for the company. Piper Sandler initiated coverage on shares of Red Cat in a research note on Wednesday, September 2nd. They set a “neutral” rating and a $9.00 price objective on the stock. Finally, UBS Group assumed coverage on shares of Red Cat in a research report on Wednesday, May 27th. They issued a “buy” rating on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $18.00.

View Our Latest Report on RCAT

Red Cat Trading Down 6.4%

The company has a market cap of $997.89 million, a P/E ratio of -10.04 and a beta of 1.35. The firm has a 50-day moving average of $8.90 and a 200 day moving average of $11.17.

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 return on equity of 32.25% and a negative net margin of 136.26%.The company had revenue of $20.20 million for the quarter, compared to analysts’ expectations of $22.65 million. On average, equities analysts predict that Red Cat Holdings, Inc. will post -0.77 EPS for the current year.

Insider Activity

In other Red Cat news, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the firm’s stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $10.63, for a total value of $584,650.00. Following the completion of the sale, the director directly owned 489,874 shares of the company’s stock, valued at $5,207,360.62. This trade represents a 10.09% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Christopher R. Moe sold 20,000 shares of the firm’s 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 completion of the sale, the director directly owned 200,502 shares in the company, valued at approximately $2,107,276.02. This trade represents a 9.07% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 240,028 shares of company stock valued at $2,692,672. 12.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Red Cat

Hedge funds and other institutional investors have recently modified their holdings of the company. CoreCap Advisors LLC lifted its position in shares of Red Cat by 13.8% in the 2nd quarter. CoreCap Advisors LLC now owns 9,039 shares of the company’s stock worth $96,000 after buying an additional 1,095 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. lifted its position in shares of Red Cat by 0.7% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 167,084 shares of the company’s stock worth $1,325,000 after acquiring an additional 1,147 shares during the period. Advisory Services Network LLC grew its holdings in shares of Red Cat by 5.3% in the 3rd quarter. Advisory Services Network LLC now owns 30,200 shares of the company’s stock worth $313,000 after purchasing an additional 1,507 shares during the last quarter. Western Wealth Management LLC lifted its holdings in Red Cat by 4.5% during the 1st quarter. Western Wealth Management LLC now owns 36,722 shares of the company’s stock worth $481,000 after buying an additional 1,570 shares in the last quarter. Finally, Cambridge Investment Research Advisors Inc. boosted its holdings in Red Cat by 1.2% during the second quarter. Cambridge Investment Research Advisors Inc. now owns 140,804 shares of the company’s stock worth $1,500,000 after buying an additional 1,608 shares during the last quarter. 37.97% of the stock is owned by institutional investors and hedge funds.

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.