Red Cat (NASDAQ:RCAT) Shares Up 13.8% – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares traded up 13.8% during trading on Tuesday . The company traded as high as $13.24 and last traded at $13.1920. 10,013,273 shares were traded during mid-day trading, a decline of 40% from the average session volume of 16,582,170 shares. The stock had previously closed at $11.59.

More Red Cat News

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

• Positive Sentiment: Closed acquisition of Apium Swarm Robotics strengthens Red Cat’s autonomy and swarming capabilities, positioning the company to capture rising U.S. and allied demand for small, distributed drone systems that can win defense contracts and drive revenue growth. Red Cat Closes Acquisition of Apium Swarm Robotics
• Positive Sentiment: Strategic partnership (MOU) with Ukraine’s Spetstechnoexport (STE) aims to accelerate joint development and scaling of air, land and maritime unmanned systems — a potential commercial and technical lever that could broaden international market access and co‑development opportunities. Red Cat Announces Strategic Partnership with Ukraine’s Spetstechnoexport
• Neutral Sentiment: Press coverage highlights the combo of Apium and the STE partnership as a coordinated strategy to recast Red Cat’s defense growth story — supportive strategically, but execution and contract wins will be the real drivers. Red Cat Taps Ukraine And Swarm Robotics To Recast Defense Growth Story
• Negative Sentiment: Agreement to acquire Quaze Technologies in a stock deal raises dilution and integration concerns; some investors and commentators have responded negatively, pressuring sentiment despite the strategic rationale. Red Cat to Acquire Quaze Technologies in Stock Deal
• Negative Sentiment: Recent coverage flagged bearish reactions to the company’s acquisition-heavy cadence; investors are weighing execution risk, regulatory/geopolitical exposure from working with a Ukrainian state entity, and Red Cat’s still-loss-making financials (recent EPS misses and negative margins). Why Red Cat Stock Was Dogged by the Bears Today

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on the company. Northland Securities set a $22.00 price target on Red Cat in a research note on Tuesday, January 20th. Needham & Company LLC upped their target price on Red Cat from $16.00 to $20.00 and gave the stock a “buy” rating in a research note on Thursday, March 19th. LADENBURG THALM/SH SH increased their price target on shares of Red Cat from $15.00 to $20.00 and gave the company a “buy” rating in a research report on Tuesday, March 3rd. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a research note on Thursday, January 22nd. Finally, Wall Street Zen raised shares of Red Cat from a “sell” rating to a “hold” rating in a research note on Saturday, March 21st. Two research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Red Cat currently has an average rating of “Hold” and an average price target of $20.67.

Red Cat Trading Up 12.3%

The business’s fifty day simple moving average is $14.00 and its 200-day simple moving average is $11.41. The firm has a market cap of $1.58 billion, a P/E ratio of -17.47 and a beta of 1.53.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings data on Wednesday, March 18th. The company reported ($0.17) EPS for the quarter, missing the consensus estimate of ($0.14) by ($0.03). The firm had revenue of $26.24 million for the quarter, compared to the consensus estimate of $24.50 million. Red Cat had a negative net margin of 176.96% and a negative return on equity of 38.86%. Analysts anticipate that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Institutional Investors Weigh In On Red Cat

Several institutional investors and hedge funds have recently bought and sold shares of the business. Bank of America Corp DE increased its stake in shares of Red Cat by 407.0% during the fourth quarter. Bank of America Corp DE now owns 3,397 shares of the company’s stock valued at $44,000 after buying an additional 2,727 shares during the period. 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 in 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 in the last quarter. Goldman Sachs Group Inc. increased its position in Red Cat by 28.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 266,099 shares of the company’s stock valued at $1,565,000 after purchasing an additional 59,334 shares during the period. Finally, Geode Capital Management LLC raised its holdings in Red Cat by 142.7% in the 2nd quarter. Geode Capital Management LLC now owns 1,656,720 shares of the company’s stock worth $12,063,000 after purchasing an additional 974,121 shares in the last quarter. Hedge funds and other institutional investors own 37.97% of the company’s stock.

About Red Cat

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.