Red Cat (NASDAQ:RCAT) Trading Up 10% Following Analyst Upgrade

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price rose 10% during mid-day trading on Tuesday after Needham & Company LLC raised their price target on the stock from $12.00 to $16.00. Needham & Company LLC currently has a buy rating on the stock. Red Cat traded as high as $13.28 and last traded at $13.1390. Approximately 16,381,553 shares traded hands during mid-day trading, an increase of 12% from the average daily volume of 14,652,831 shares. The stock had previously closed at $11.94.

Several other equities analysts have also recently weighed in on the stock. LADENBURG THALM/SH SH upgraded shares of Red Cat to a “strong-buy” rating in a research note on Thursday, December 18th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research report on Wednesday, October 8th. Finally, Wall Street Zen cut shares of Red Cat from a “hold” rating to a “sell” rating in a research note on Saturday, October 4th. Two analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Buy” and an average target price of $16.00.

Key Red Cat News

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

• Positive Sentiment: Red Cat reported preliminary, unaudited Q4 2025 revenue of $24.0M–$26.5M, an ~1,842% increase vs. Q4 2024 ($1.3M). This large revenue swing suggests meaningful new contracts or ramping deliveries and is the primary driver behind the share move. Red Cat Holdings Announces Preliminary Revenue Results for the Fourth Quarter and Full Year 2025
• Positive Sentiment: Financial media amplified the revenue surprise (headlines describe an >1,800% Q4 revenue surge), increasing investor attention and trading volume. Coverage likely magnified the rally as traders reacted to the scope of the beat. Red Cat stock soars after preliminary revenue surge of over 1,800%
• Positive Sentiment: Needham upgraded/raised its price target on RCAT from $12.00 to $16.00 and kept a Buy rating — signaling incremental analyst conviction and providing visible upside from current levels. That formal upgrade supports momentum and may attract more institutional interest. Benzinga
• Positive Sentiment: Brokerage/consensus coverage shows a Buy consensus across analysts, which can reinforce positive flows after the revenue surprise. Red Cat Holdings, Inc. (NASDAQ:RCAT) Given Consensus Rating of “Buy” by Analysts
• Neutral Sentiment: Red Cat said it updated Q4 and FY2025 EPS guidance in recent filings/announcements, but the provided items here show no numeric EPS values — creating uncertainty until the company files full audited results or a detailed release. (Monitor the formal 10-K/earnings release for finalized guidance.)
• Neutral Sentiment: Short-interest data in the feed appears unreliable (reported as 0 shares with NaN changes). That makes it hard to read into short-covering dynamics from these reports; check official exchange short-interest releases for clarity.

Institutional Trading of Red Cat

Several institutional investors and hedge funds have recently modified their holdings of the company. Bank of America Corp DE raised its position 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 last quarter. Royal Bank of Canada grew its stake in Red Cat by 76.4% during 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. increased its holdings in Red Cat by 63.6% in the 1st 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 during the last quarter. Goldman Sachs Group Inc. lifted its stake in Red Cat by 28.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 266,099 shares of the company’s stock worth $1,565,000 after purchasing an additional 59,334 shares in the last quarter. Finally, Post Resch Tallon Group Inc. purchased a new stake in Red Cat in the 2nd quarter worth $154,000. 37.97% of the stock is currently owned by institutional investors.

Red Cat Stock Performance

The firm has a market cap of $1.56 billion, a P/E ratio of -29.68 and a beta of 1.48. The firm’s fifty day simple moving average is $8.42 and its 200 day simple moving average is $9.49.

Red Cat (NASDAQ:RCAT) last issued its earnings results on Thursday, November 13th. The company reported ($0.16) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.07) by ($0.09). The firm had revenue of $9.65 million during the quarter, compared to analysts’ expectations of $8.18 million. On average, equities research analysts predict that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

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.