Northland Securities Predicts Reduced Earnings for Red Cat

Red Cat Holdings, Inc. (NASDAQ:RCAT) – Investment analysts at Northland Securities reduced their Q2 2026 EPS estimates for Red Cat in a research report issued to clients and investors on Thursday, July 23rd. Northland Securities analyst M. Latimore now anticipates that the company will earn ($0.21) per share for the quarter, down from their previous estimate of ($0.19). 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 Q3 2026 earnings at ($0.15) EPS, Q4 2026 earnings at ($0.15) EPS, FY2026 earnings at ($0.73) EPS, Q1 2027 earnings at ($0.18) EPS, Q2 2027 earnings at ($0.17) EPS, Q3 2027 earnings at ($0.10) EPS, Q4 2027 earnings at ($0.04) EPS and FY2027 earnings at ($0.49) EPS.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings data on Thursday, May 7th. The company reported ($0.22) EPS for the quarter, missing the consensus estimate of ($0.12) by ($0.10). Red Cat had a negative net margin of 138.36% and a negative return on equity of 35.86%. The company had revenue of $15.47 million during the quarter, compared to analyst estimates of $17.63 million. The company’s quarterly revenue was up 849.1% compared to the same quarter last year.

Other equities analysts also recently issued research reports about the company. Wall Street Zen downgraded Red Cat from a “sell” rating to a “strong sell” rating in a research report on Saturday, July 18th. Clear Str raised Red Cat to a “strong-buy” rating in a report on Wednesday, April 29th. UBS Group initiated coverage on Red Cat in a research note on Wednesday, May 27th. They issued a “buy” rating for the company. LADENBURG THALM/SH SH raised Red Cat to a “strong-buy” rating in a report on Wednesday, May 6th. Finally, Roth Capital initiated coverage on Red Cat in a report on Monday, June 1st. They issued a “buy” rating and a $25.00 price objective on the stock. Two research analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Red Cat has an average rating of “Buy” and an average price target of $21.40.

Red Cat Stock Up 2.0%

Red Cat stock opened at $7.79 on Monday. The company’s 50-day moving average price is $10.32 and its two-hundred day moving average price is $12.11. The stock has a market cap of $956.14 million, a P/E ratio of -11.13 and a beta of 1.29. Red Cat has a twelve month low of $5.77 and a twelve month high of $18.78.

Insider Activity

In other Red Cat news, Director Paul Funk II sold 165,028 shares of the 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 document filed with the SEC, which is available at this hyperlink. 12.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Red Cat

Several institutional investors have recently made changes to their positions in the stock. State Street Corp raised its holdings in Red Cat by 136.4% in the 4th quarter. State Street Corp now owns 6,612,153 shares of the company’s stock valued at $52,434,000 after acquiring an additional 3,815,310 shares in the last quarter. Vanguard Group Inc. grew its holdings in shares of Red Cat by 9.0% during the 4th quarter. Vanguard Group Inc. now owns 6,000,037 shares of the company’s stock worth $47,580,000 after purchasing an additional 493,660 shares in the last quarter. Geode Capital Management LLC increased its position in shares of Red Cat by 13.4% in the fourth quarter. Geode Capital Management LLC now owns 2,520,524 shares of the company’s stock worth $19,991,000 after purchasing an additional 297,967 shares during the period. Davidson Kempner Capital Management LP bought a new position in shares of Red Cat in the third quarter worth $17,286,000. Finally, Renaissance Technologies LLC acquired a new position in Red Cat in the first quarter valued at about $18,533,000. 37.97% of the stock is currently owned by institutional investors.

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.