Sei Investments Co. Takes Position in Red Cat Holdings, Inc. $RCAT

Sei Investments Co. purchased a new position in Red Cat Holdings, Inc. (NASDAQ:RCAT) in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 177,851 shares of the company’s stock, valued at approximately $2,328,000.

A number of other hedge funds and other institutional investors have also recently modified their holdings of RCAT. IFP Advisors Inc increased its holdings in Red Cat by 181.1% during the third quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock valued at $28,000 after buying an additional 1,720 shares during the period. Fifth Third Bancorp purchased a new stake in Red Cat during the first quarter worth $33,000. California State Teachers Retirement System bought a new stake in Red Cat during the 2nd quarter valued at $34,000. NFSG Corp increased its holdings in shares of Red Cat by 200.0% in the 1st quarter. NFSG Corp now owns 3,000 shares of the company’s stock valued at $39,000 after acquiring an additional 2,000 shares during the period. Finally, PNC Financial Services Group Inc. increased its holdings in shares of Red Cat by 294.6% in the 1st quarter. PNC Financial Services Group Inc. now owns 3,042 shares of the company’s stock valued at $40,000 after acquiring an additional 2,271 shares during the period. 37.97% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of brokerages recently weighed in on RCAT. Clear Str upgraded Red Cat to a “strong-buy” rating in a research note on Wednesday, April 29th. UBS Group started coverage on Red Cat in a research note on Wednesday, May 27th. They issued a “buy” rating on the stock. LADENBURG THALM/SH SH upgraded shares of Red Cat to a “strong-buy” rating in a report on Wednesday, May 6th. Needham & Company LLC decreased 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. Finally, Wall Street Zen lowered shares of Red Cat from a “sell” rating to a “strong sell” rating in a research report on Saturday, July 18th. Two investment analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average target price of $20.40.

Insider Buying and Selling at Red Cat

In other news, Director Paul Funk II sold 165,028 shares of the business’s stock in a transaction dated 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 document filed with the SEC, which is accessible through this hyperlink. Insiders own 12.50% of the company’s stock.

Red Cat Trading Up 6.2%

NASDAQ RCAT opened at $9.21 on Friday. The firm’s fifty day simple moving average is $9.89 and its two-hundred day simple moving average is $11.83. The firm has a market capitalization of $1.13 billion, a P/E ratio of -11.37 and a beta of 1.31. Red Cat Holdings, Inc. has a 12-month low of $5.77 and a 12-month high of $18.78.

Red Cat (NASDAQ:RCAT) last announced its earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share for the quarter, missing the consensus estimate of ($0.21) by ($0.05). Red Cat had a negative return on equity of 39.64% and a negative net margin of 136.26%.The business had revenue of $20.20 million for the quarter, compared to analysts’ expectations of $22.65 million. As a group, sell-side analysts predict that Red Cat Holdings, Inc. will post -0.68 earnings per share for the current fiscal year.

Key Stories 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

Red Cat Company Profile

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.