Red Cat (NASDAQ:RCAT) Trading Up 12.9% – Still a Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT) was up 12.9% during mid-day trading on Tuesday . The stock traded as high as $13.28 and last traded at $13.09. Approximately 14,298,314 shares traded hands during trading, a decline of 14% from the average daily volume of 16,662,281 shares. The stock had previously closed at $11.59.

Key Headlines Impacting Red Cat

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

• Positive Sentiment: Closed acquisition of Apium Swarm Robotics strengthens Red Cat’s autonomy and swarming capabilities, positioning the company to capture rising U.S. and allied demand for small, distributed drone systems that can win defense contracts and drive revenue growth. Red Cat Closes Acquisition of Apium Swarm Robotics
• Positive Sentiment: Strategic partnership (MOU) with Ukraine’s Spetstechnoexport (STE) aims to accelerate joint development and scaling of air, land and maritime unmanned systems — a potential commercial and technical lever that could broaden international market access and co‑development opportunities. Red Cat Announces Strategic Partnership with Ukraine’s Spetstechnoexport
• Neutral Sentiment: Press coverage highlights the combo of Apium and the STE partnership as a coordinated strategy to recast Red Cat’s defense growth story — supportive strategically, but execution and contract wins will be the real drivers. Red Cat Taps Ukraine And Swarm Robotics To Recast Defense Growth Story
• Negative Sentiment: Agreement to acquire Quaze Technologies in a stock deal raises dilution and integration concerns; some investors and commentators have responded negatively, pressuring sentiment despite the strategic rationale. Red Cat to Acquire Quaze Technologies in Stock Deal
• Negative Sentiment: Recent coverage flagged bearish reactions to the company’s acquisition-heavy cadence; investors are weighing execution risk, regulatory/geopolitical exposure from working with a Ukrainian state entity, and Red Cat’s still-loss-making financials (recent EPS misses and negative margins). Why Red Cat Stock Was Dogged by the Bears Today

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. LADENBURG THALM/SH SH lifted their target price on shares of Red Cat from $15.00 to $20.00 and gave the stock a “buy” rating in a research report on Tuesday, March 3rd. Northland Securities set a $22.00 price target on shares of Red Cat in a research report on Tuesday, January 20th. Needham & Company LLC raised their price objective on shares of Red Cat from $16.00 to $20.00 and gave the stock a “buy” rating in a research note on Thursday, March 19th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research report on Thursday, January 22nd. Finally, Wall Street Zen raised shares of Red Cat from a “sell” rating to a “hold” rating in a research note on Saturday, March 21st. Two analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $20.67.

Red Cat Trading Up 12.9%

The stock has a 50-day simple moving average of $14.00 and a 200 day simple moving average of $11.41. The stock has a market capitalization of $1.59 billion, a price-to-earnings ratio of -17.45 and a beta of 1.53.

Red Cat (NASDAQ:RCAT) last issued 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 business had revenue of $26.24 million during the quarter, compared to analyst estimates of $24.50 million. Red Cat had a negative net margin of 176.96% and a negative return on equity of 38.86%. Sell-side analysts expect that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in RCAT. IFP Advisors Inc lifted its position in Red Cat by 181.1% in the 3rd quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock worth $28,000 after buying an additional 1,720 shares in the last quarter. Montag A & Associates Inc. grew its holdings in shares of Red Cat by 552.0% during the 3rd quarter. Montag A & Associates Inc. now owns 3,260 shares of the company’s stock valued at $34,000 after acquiring an additional 2,760 shares in the last quarter. California State Teachers Retirement System acquired a new position in shares of Red Cat in the second quarter worth $34,000. Global Retirement Partners LLC acquired a new position in shares of Red Cat in the third quarter worth $36,000. Finally, N.E.W. Advisory Services LLC raised its holdings in shares of Red Cat by 163.5% during the fourth quarter. N.E.W. Advisory Services LLC now owns 5,356 shares of the company’s stock worth $42,000 after acquiring an additional 3,323 shares in the last quarter. Institutional investors and hedge funds own 37.97% of the company’s stock.

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.