Northland Securities Forecasts Stronger Earnings for Red Cat

Red Cat Holdings, Inc. (NASDAQ:RCAT) – Stock analysts at Northland Securities lifted their Q3 2026 earnings per share estimates for shares of Red Cat in a research report issued to clients and investors on Thursday, March 19th. Northland Securities analyst M. Latimore now forecasts that the company will post earnings per share of ($0.09) for the quarter, up from their previous estimate of ($0.10). The consensus estimate for Red Cat’s current full-year earnings is ($0.50) per share. Northland Securities also issued estimates for Red Cat’s Q4 2026 earnings at ($0.05) EPS and FY2026 earnings at ($0.41) EPS.

A number of other brokerages also recently commented on RCAT. Needham & Company LLC increased their price objective on shares of Red Cat from $16.00 to $20.00 and gave the company a “buy” rating in a research report on Thursday. Wall Street Zen upgraded shares of Red Cat from a “sell” rating to a “hold” rating in a research note on Saturday. LADENBURG THALM/SH SH increased their target price on Red Cat from $15.00 to $20.00 and gave the company a “buy” rating in a report on Tuesday, March 3rd. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Red Cat in a research note on Thursday, January 22nd. Two investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $20.67.

Red Cat Stock Down 12.5%

Shares of Red Cat stock opened at $13.25 on Monday. Red Cat has a 52-week low of $4.60 and a 52-week high of $18.78. The company has a market capitalization of $1.61 billion, a P/E ratio of -17.67 and a beta of 1.53. The company has a 50 day moving average of $13.90 and a 200 day moving average of $11.19.

Red Cat (NASDAQ:RCAT) last released its earnings results on Wednesday, March 18th. The company reported ($0.17) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.14) by ($0.03). The firm had revenue of $26.24 million for the quarter, compared to analysts’ expectations of $24.50 million. Red Cat had a negative return on equity of 38.86% and a negative net margin of 176.96%.

Institutional Trading of Red Cat

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. State Street Corp lifted its position in shares of Red Cat by 136.4% during the 4th quarter. State Street Corp now owns 6,612,153 shares of the company’s stock worth $52,434,000 after buying an additional 3,815,310 shares during the last quarter. Vanguard Group Inc. raised its stake in 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 acquiring an additional 493,660 shares in the last quarter. Geode Capital Management LLC raised its stake in Red Cat by 13.4% during the 4th quarter. Geode Capital Management LLC now owns 2,520,524 shares of the company’s stock worth $19,991,000 after acquiring an additional 297,967 shares in the last quarter. AWM Investment Company Inc. lifted its position in Red Cat by 15.3% in the second quarter. AWM Investment Company Inc. now owns 2,037,616 shares of the company’s stock valued at $14,834,000 after acquiring an additional 269,942 shares during the last quarter. Finally, Brevan Howard Capital Management LP purchased a new stake in Red Cat in the third quarter valued at $19,739,000. Institutional investors and hedge funds own 37.97% of the company’s stock.

More Red Cat News

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

• Positive Sentiment: Needham & Company raised its price target to $20 and maintained a “buy” rating, signaling upside potential from institutional coverage and contributing to investor optimism. Needham Price Target Raise
• Positive Sentiment: Northland Securities issued a buy on RCAT, adding another bullish broker stance that can support further interest from buy‑side investors. Red Cat Gets a Buy from Northland
• Positive Sentiment: Company reports record Q4 revenue and a 161% full‑year revenue increase, and says production capacity was expanded ~520%, which supports a growth narrative if the company can convert scale into margin improvement. Red Cat Reports Record Q4 Revenue
• Positive Sentiment: Recent sharp share moves have created momentum — RCAT showed strong 30‑day returns despite intra‑day selling, attracting momentum traders. Valuation Check After Sharp Swings
• Neutral Sentiment: Management has not provided formal FY26 guidance yet but says it’s comfortable in the top half of Street estimates; the timing of formal guidance (linked to a contract finalization) is a near‑term catalyst but remains uncertain. No Formal Guidance
• Neutral Sentiment: Unusually high options activity and elevated share volume suggest speculative positioning and increased short‑term volatility, which can amplify price moves in either direction. Unusually High Options Trading
• Neutral Sentiment: Recent earnings call and transcripts highlight product expansion (e.g., Black Widow, Maritime USVs) and production ramp efforts — strategic positives, but execution risk remains. Earnings Call Transcript
• Negative Sentiment: Q4 EPS missed estimates (reported -$0.17 vs. -$0.14 consensus) and the company shows a deeply negative net margin and ROE, stoking concerns that revenue growth has not yet translated into profitability. Earnings Details & EPS Miss
• Negative Sentiment: Analysts and commentators note Red Cat is still burning cash and in some cases selling units near cost to drive share, which pressures margins and raises questions about near‑term free cash flow. Revenue Jumps But Still Bleeds Cash
• Negative Sentiment: Coverage pieces pointed to a pullback after the big run — margin pressure and profit‑taking helped drive the stock lower today amid heavy volume. Why Red Cat Stock Got Declawed

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.