Royal Bank of Canada Grows Position in Red Cat Holdings, Inc. $RCAT

Royal Bank of Canada raised its stake in shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) by 74.1% during the 1st quarter, Holdings Channel.com reports. The fund owned 432,005 shares of the company’s stock after acquiring an additional 183,905 shares during the period. Royal Bank of Canada’s holdings in Red Cat were worth $5,655,000 as of its most recent SEC filing.

Other hedge funds have also recently bought and sold shares of the company. Arizona State Retirement System grew its stake in shares of Red Cat by 3.0% in the 4th quarter. Arizona State Retirement System now owns 29,311 shares of the company’s stock worth $232,000 after acquiring an additional 855 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. lifted its position in shares of Red Cat by 0.7% during the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 167,084 shares of the company’s stock valued at $1,325,000 after purchasing an additional 1,147 shares in the last quarter. Advisory Services Network LLC lifted its position in shares of Red Cat by 5.3% during the third quarter. Advisory Services Network LLC now owns 30,200 shares of the company’s stock valued at $313,000 after purchasing an additional 1,507 shares in the last quarter. IFP Advisors Inc boosted its holdings in Red Cat by 181.1% during the third quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock worth $28,000 after purchasing an additional 1,720 shares during the last quarter. Finally, Wealthfront Advisers LLC boosted its holdings in Red Cat by 15.7% during the first quarter. Wealthfront Advisers LLC now owns 12,959 shares of the company’s stock worth $170,000 after purchasing an additional 1,754 shares during the last quarter. 37.97% of the stock is owned by hedge funds and other institutional investors.

Red Cat Stock Performance

RCAT opened at $10.32 on Thursday. Red Cat Holdings, Inc. has a fifty-two week low of $5.77 and a fifty-two week high of $18.78. The firm has a 50-day moving average of $9.64 and a 200 day moving average of $11.70. The firm has a market cap of $1.27 billion, a P/E ratio of -12.74 and a beta of 1.31.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings data on Thursday, August 6th. The company reported ($0.26) EPS for the quarter, missing the consensus estimate of ($0.21) by ($0.05). The company had revenue of $20.20 million during the quarter, compared to the consensus estimate of $22.65 million. Red Cat had a negative return on equity of 39.64% and a negative net margin of 136.26%. Equities research analysts predict that Red Cat Holdings, Inc. will post -0.76 earnings per share for the current fiscal year.

Key Headlines Impacting Red Cat

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

• Positive Sentiment: Red Cat promoted Mitch McDonald to Divisional CEO of its unmanned aircraft systems operations. He will oversee Teal Drones and FlightWave Aerospace under one leadership structure, which the company says should improve coordination, manufacturing scale and operational efficiency as demand from U.S. and allied defense customers grows. Red Cat Promotes Mitch McDonald to Divisional CEO of its UAS Operations
• Positive Sentiment: HC Wainwright maintained a Buy rating and a $20 price target, substantially above the recent trading level, despite reducing several earnings forecasts. Institutional ownership trends were also broadly favorable, with State Street and other funds reporting sizable additions to their positions.
• Neutral Sentiment: Red Cat experienced unusually heavy options activity, suggesting elevated trading interest and potentially higher short-term volatility, but the available report did not identify a clear bullish or bearish directional signal. Red Cat Sees Unusually Large Options Volume
• Negative Sentiment: Northland Securities and HC Wainwright lowered EPS estimates across 2026-2030. Northland cut its FY2026 forecast to a $0.84 loss per share from $0.73 and FY2027 to a $0.70 loss from $0.49. HC Wainwright reduced its FY2026 estimate to a $0.89 loss and FY2027 to a $0.90 loss, indicating expectations for prolonged losses.
• Negative Sentiment: The revisions follow Red Cat’s latest quarterly results, which missed analyst expectations on both earnings and revenue: an EPS loss of $0.26 versus an expected $0.21 loss, and revenue of $20.2 million versus a $22.65 million estimate. The company remains unprofitable, with a negative net margin and return on equity.
• Negative Sentiment: Reported insider activity showed two open-market sales totaling roughly 315,000 shares and no purchases during the past six months, a potential signal of reduced insider conviction.

Insider Activity

In other news, Director Paul Funk II sold 165,028 shares of the firm’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 document filed with the Securities & Exchange Commission, which is available at this hyperlink. 12.50% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the stock. LADENBURG THALM/SH SH upgraded shares of Red Cat to a “strong-buy” rating in a research note on Wednesday, May 6th. Needham & Company LLC cut their target price on Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a research note on Friday, August 7th. Clear Str raised Red Cat to a “strong-buy” rating in a report on Wednesday, April 29th. Roth Capital started coverage on Red Cat in a research report on Monday, June 1st. They set a “buy” rating and a $25.00 price target for the company. Finally, Wall Street Zen lowered Red Cat from a “sell” rating to a “strong sell” rating in a report on Saturday, July 18th. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Buy” and an average price target of $20.40.

Red Cat 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.