Q3 EPS Estimates for Red Cat Lowered by Northland Securities

Red Cat Holdings, Inc. (NASDAQ:RCAT) – Research analysts at Northland Securities decreased their Q3 2026 earnings per share estimates for shares of Red Cat in a research note issued on Wednesday, September 16th. Northland Securities analyst M. Latimore now forecasts that the company will earn ($0.28) per share for the quarter, down from their previous estimate of ($0.22). The consensus estimate for Red Cat’s current full-year earnings is ($0.77) per share. Northland Securities also issued estimates for Red Cat’s Q4 2026 earnings at ($0.19) EPS, FY2026 earnings at ($0.95) EPS, Q1 2027 earnings at ($0.21) EPS, Q2 2027 earnings at ($0.20) EPS, Q4 2027 earnings at ($0.14) EPS and FY2027 earnings at ($0.73) EPS.

A number of other equities analysts also recently weighed in on 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. Piper Sandler assumed coverage on shares of Red Cat in a report on Wednesday, September 2nd. They set a “neutral” rating and a $9.00 target price for the company. Needham & Company LLC dropped their target price on Red Cat from $20.00 to $15.00 and set a “buy” rating for the company in a report on Friday, August 7th. Evercore started coverage on shares of Red Cat in a research report on Monday, August 31st. They issued an “outperform” rating and a $15.00 target price for the company. Finally, UBS Group assumed coverage on shares of Red Cat in a research note on Wednesday, May 27th. They issued a “buy” rating on the stock. Two research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Red Cat currently has an average rating of “Moderate Buy” and an average target price of $16.71.

Red Cat Price Performance

Red Cat stock opened at $7.09 on Friday. The company’s 50-day moving average is $8.60 and its 200-day moving average is $10.93. The firm has a market capitalization of $870.24 million, a PE ratio of -8.75 and a beta of 1.35. Red Cat has a fifty-two week low of $5.77 and a fifty-two week high of $18.78.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.21) by ($0.05). The firm had revenue of $20.20 million for the quarter, compared to the consensus estimate of $22.65 million. Red Cat had a negative return on equity of 32.25% and a negative net margin of 136.26%.

Institutional Trading of Red Cat

Several large investors have recently made changes to their positions in RCAT. CoreCap Advisors LLC raised its position in Red Cat by 13.8% in the second quarter. CoreCap Advisors LLC now owns 9,039 shares of the company’s stock valued at $96,000 after purchasing an additional 1,095 shares during the last quarter. Western Wealth Management LLC grew its holdings in Red Cat by 4.5% during the 1st quarter. Western Wealth Management LLC now owns 36,722 shares of the company’s stock worth $481,000 after acquiring an additional 1,570 shares during the last quarter. Cambridge Investment Research Advisors Inc. increased its position in Red Cat by 1.2% in the 2nd quarter. Cambridge Investment Research Advisors Inc. now owns 140,804 shares of the company’s stock valued at $1,500,000 after acquiring an additional 1,608 shares during the period. Wealthfront Advisers LLC raised its stake in shares of Red Cat by 15.7% during the first quarter. Wealthfront Advisers LLC now owns 12,959 shares of the company’s stock valued at $170,000 after acquiring an additional 1,754 shares during the last quarter. Finally, The Manufacturers Life Insurance Company lifted its holdings in shares of Red Cat by 4.2% during the second quarter. The Manufacturers Life Insurance Company now owns 49,008 shares of the company’s stock worth $522,000 after purchasing an additional 1,961 shares during the period. Institutional investors and hedge funds own 37.97% of the company’s stock.

Insider Transactions at Red Cat

In other Red Cat news, Director Christopher R. Moe sold 20,000 shares of the stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total transaction of $210,200.00. Following the sale, the director directly owned 200,502 shares in the company, valued at $2,107,276.02. This represents a 9.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Jeffrey M. Thompson sold 150,000 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $7.74, for a total transaction of $1,161,000.00. Following the completion of the transaction, the chief executive officer directly owned 11,712,202 shares in the company, valued at approximately $90,652,443.48. This represents a 1.26% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 225,000 shares of company stock valued at $1,955,850. 12.50% of the stock is owned by corporate insiders.

More Red Cat News

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

• Positive Sentiment: Red Cat continues to attract bullish analyst coverage: the consensus rating remains “Moderate Buy,” with an average price target of $16.71 versus the current share price. Some analysts cite potential upside from the company’s AI-enabled defense and drone businesses. Red Cat Holdings Faces a 65% Undervalued View
• Neutral Sentiment: CEO Jeffrey Thompson sold 150,000 shares for approximately $1.16 million at an average price of $7.74. The sale reduced his direct stake by about 1.26% and was executed under a pre-arranged Rule 10b5-1 plan, making it a less significant bearish signal; he still owns more than 11.7 million shares. SEC Insider Transaction Filing
• Negative Sentiment: Northland Securities reduced its FY2026 EPS forecast to a loss of $0.95 from $0.84 and its FY2027 forecast to a loss of $0.73 from $0.70. The firm also lowered estimates for Q3 and Q4 2026 and Q2 and Q4 2027, although it modestly improved its Q1 2027 estimate to a $0.21 loss from $0.22.
• Negative Sentiment: Recent coverage highlights execution risk during Red Cat’s ambitious AI-defense ramp-up. That concern is particularly important because the company’s latest reported quarter missed both EPS and revenue expectations, while analysts currently expect another full-year loss of approximately $0.77 per share. Red Cat Is Down After Mixed Results on AI-Defense Ramp-Up Plans

Red Cat Company Profile

Red Cat Holdings, Inc is a drone technology company that develops and supplies small unmanned aircraft systems for military, government, public safety and commercial applications. Its solutions are designed to support intelligence, surveillance and reconnaissance, situational awareness, and other missions requiring portable and rapidly deployable aerial systems.

Through its Teal Drones business, Red Cat offers the Teal 2 and related Black Widow systems, compact drones designed for defense and public-safety users.