Northland Securities Forecasts Weaker Earnings for Red Cat

Red Cat Holdings, Inc. (NASDAQ:RCAT) – Equities researchers at Northland Securities reduced their Q3 2026 EPS estimates for shares of Red Cat in a research report issued on Friday, August 7th. Northland Securities analyst M. Latimore now anticipates that the company will earn ($0.22) per share for the quarter, down from their prior forecast of ($0.15). The consensus estimate for Red Cat’s current full-year earnings is ($0.68) per share. Northland Securities also issued estimates for Red Cat’s FY2026 earnings at ($0.84) EPS, Q1 2027 earnings at ($0.22) EPS, Q2 2027 earnings at ($0.18) EPS, Q3 2027 earnings at ($0.19) EPS, Q4 2027 earnings at ($0.11) EPS and FY2027 earnings at ($0.70) EPS.

Other equities research analysts have also issued research reports about the company. Roth Capital assumed coverage on Red Cat in a report on Monday, June 1st. They issued a “buy” rating and a $25.00 price objective for the company. 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. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a research report on Friday, July 17th. Needham & Company LLC dropped their price target on shares of Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a research note on Friday. Finally, LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a report on Wednesday, May 6th. Two equities research 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 stock. According to data from MarketBeat, Red Cat presently has an average rating of “Buy” and a consensus target price of $20.40.

Red Cat Price Performance

Shares of RCAT opened at $10.00 on Tuesday. Red Cat has a 1 year low of $5.77 and a 1 year high of $18.78. The stock’s fifty day moving average price is $9.79 and its two-hundred day moving average price is $11.79. The firm has a market cap of $1.23 billion, a PE ratio of -12.35 and a beta of 1.32.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings results on Thursday, August 6th. The company reported ($0.26) EPS for the quarter, missing analysts’ consensus estimates 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 company had revenue of $20.20 million during the quarter, compared to the consensus estimate of $22.65 million.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Csenge Advisory Group purchased a new stake in shares of Red Cat in the second quarter worth $256,000. Wealthfront Advisers LLC bought a new position in Red Cat in the 2nd quarter worth about $210,000. Main Street Financial Solutions LLC bought a new position in Red Cat in the 2nd quarter worth about $109,000. BlackRock Inc. purchased a new stake in shares of Red Cat in the 2nd quarter valued at about $119,610,000. Finally, Pallas Capital Advisors LLC purchased a new stake in shares of Red Cat in the 2nd quarter valued at about $166,000. Institutional investors own 37.97% of the company’s stock.

Insider Activity at Red Cat

In related news, Director Paul Funk II sold 165,028 shares of the business’s stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $11.50, for a total transaction of $1,897,822.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 12.50% of the company’s stock.

Red Cat News Summary

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

• Positive Sentiment: Red Cat announced a multiyear partnership with the Washington Commanders focused on military appreciation initiatives, community events and NFL-season marketing. The agreement could improve brand awareness and reinforce Red Cat’s defense-oriented identity, although it does not include disclosed financial terms. Red Cat Announces Multiyear Partnership with Washington Commanders
• Positive Sentiment: Analyst sentiment remains favorable: Red Cat received an average “Buy” rating, while HC Wainwright reiterated its “Buy” recommendation. Previously reported analyst price targets were materially above the stock’s recent trading level, supporting the rebound narrative. Red Cat Receives Average Rating of Buy Red Cat Buy Rating Reiterated at HC Wainwright
• Positive Sentiment: Unusually high options activity may be adding speculative buying pressure. Traders purchased 52,096 call options, roughly 92% above typical daily call volume, signaling increased bullish interest but not guaranteed future gains.
• Neutral Sentiment: Strength in peer Unusual Machines and broader drone-stock momentum suggests RCAT is benefiting from a sector-wide trade rather than company-specific fundamentals alone. Unusual Machines Stock Is Climbing
• Negative Sentiment: Recent earnings remain a fundamental risk. Red Cat missed quarterly EPS and revenue expectations, with a negative net margin and analysts forecasting a full-year loss, making the rally vulnerable if growth or defense bookings disappoint. Red Cat Stock May Stay Stretched Despite Strong Revenue Growth
• Negative Sentiment: The stock may remain stretched after its post-earnings rebound, while reported insider activity showed sales and no purchases during the past six months—signals that could temper investor confidence.

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.