Red Cat Holdings, Inc. (NASDAQ:RCAT) Stock Rated “Moderate Buy” by Sell-Side Brokerages

Posted by Francis Steltz on Oct 31st, 2026

Red Cat Holdings, Inc. (NASDAQ:RCAT – Get Free Report) has received an average recommendation of “Moderate Buy” from the ten analysts that are currently covering the firm, Marketbeat reports. Two equities research analysts have rated the stock with a sell recommendation, one has given a hold recommendation, five have issued a buy recommendation and two have assigned a strong buy recommendation to the company. The average 1-year target price among brokers that have issued a report on the stock in the last year is $16.29.

A number of research analysts have commented on the stock. Needham & Company LLC reaffirmed a “buy” rating and issued a $15.00 target price on shares of Red Cat in a research report on Tuesday, October 20th. Wall Street Zen cut shares of Red Cat from a “sell” rating to a “strong sell” rating in a research report on Saturday, July 18th. Zacks Research downgraded shares of Red Cat from a “hold” rating to a “strong sell” rating in a research note on Monday, October 12th. Northland Securities set a $13.00 price objective on shares of Red Cat in a report on Thursday, September 17th. Finally, Piper Sandler decreased their price objective on shares of Red Cat from $9.00 to $6.00 and set a “neutral” rating on the stock in a report on Friday, October 23rd.

Read Our Latest Report on Red Cat

Red Cat Price Performance

Shares of RCAT opened at $4.63 on Friday. The company’s fifty day moving average price is $6.68 and its 200-day moving average price is $10.52. Red Cat has a 1-year low of $4.14 and a 1-year high of $18.78. The firm has a market capitalization of $568.30 million, a PE ratio of -5.72 and a beta of 1.51.

Red Cat (NASDAQ:RCAT – Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.21) by ($0.05). The company had revenue of $20.20 million during the quarter, compared to analyst estimates of $22.65 million. Red Cat had a negative net margin of 136.26% and a negative return on equity of 32.25%. As a group, research analysts anticipate that Red Cat will post -0.79 EPS 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 dated Tuesday, August 11th. The stock was 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 of the company’s stock, valued at approximately $2,107,276.02. This represents a 9.07% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Jeffrey Thompson sold 150,000 shares of the stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $4.51, for a total value of $676,500.00. Following the transaction, the chief executive officer directly owned 11,562,202 shares in the company, valued at approximately $52,145,531.02. The trade was a 1.28% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 375,000 shares of company stock worth $2,632,350. 12.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Red Cat

A number of hedge funds have recently added to or reduced their stakes in RCAT. Integrity Alliance LLC. purchased a new position in Red Cat during the third quarter worth $142,000. ProShare Advisors LLC lifted its holdings in Red Cat by 18.8% in the 3rd quarter. ProShare Advisors LLC now owns 17,321 shares of the company’s stock valued at $112,000 after purchasing an additional 2,747 shares in the last quarter. VestGen Advisors LLC boosted its stake in shares of Red Cat by 17.6% during the 3rd quarter. VestGen Advisors LLC now owns 46,188 shares of the company’s stock worth $298,000 after purchasing an additional 6,916 shares during the last quarter. Fifth Third Wealth Advisors LLC acquired a new stake in shares of Red Cat during the 3rd quarter worth about $76,000. Finally, Sterling Capital Management LLC boosted its stake in shares of Red Cat by 1,063.9% during the 3rd quarter. Sterling Capital Management LLC now owns 4,551 shares of the company’s stock worth $29,000 after purchasing an additional 4,160 shares during the last quarter. 37.97% of the stock is currently owned by institutional investors and hedge funds.

About Red Cat

(Get Free Report)

Red Cat Holdings, Inc is a drone technology company that develops and provides unmanned aircraft systems, software, and related services for defense, public safety, and commercial applications. Its solutions are designed to support intelligence, surveillance, reconnaissance, and situational-awareness missions in demanding operating environments.

Through its Teal Drones subsidiary, Red Cat offers small unmanned aircraft systems such as the Teal 2, a compact drone designed for nighttime operations and short-range reconnaissance.