Red Cat Holdings, Inc. (RCAT) Stock Analysis
Industrials · Aerospace & Defense
Sell if holding. Engine safety override at $11.48: Quality below floor (1.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10 and A.R:R 4.1:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 31%; Below-average business quality; Negative price momentum.
Red Cat Holdings develops and sells advanced all-domain drone and robotic systems (sUAS and uncrewed surface vessels) for defense, national security, and commercial applications. Revenue is primarily from hardware/software sales to U.S. military and government customers;... Read more
Sell if holding. Engine safety override at $11.48: Quality below floor (1.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10 and A.R:R 4.1:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 31%; Below-average business quality; Negative price momentum. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 4.1/10, moderate confidence.
Passes 4/6 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, semi cycle peak clear). Fails on weak momentum and earnings proximity 7d<=7d. Suitability: aggressive.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHSuppliersole-source suppliers10-K Item 1A: 'We rely on third-party suppliers, some of which are sole-source suppliers, to provide components for our products'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
4 floor-breakers
Unprofitable operations — net margin -177.0%. Quality floor flags this regardless of sector context.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $11.48: Quality below floor (1.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10 and A.R:R 4.1:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 31%; Below-average business quality; Negative price momentum. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $10.65. Score 4.1/10, moderate confidence.
Take-profit target: $18.49 (+61.5% upside). Prior stop was $10.65. Stop-loss: $10.65.
Concentration risk — Supplier: sole-source suppliers; Quality below floor (1.5 < 4.0).
Red Cat Holdings, Inc. trades at a P/E of N/A (forward -36.9). TrendMatrix value score: 5.4/10. Verdict: Sell.
10 analysts cover RCAT with a consensus score of 4.2/5. Average price target: $22.
What does Red Cat Holdings, Inc. do?Red Cat Holdings develops and sells advanced all-domain drone and robotic systems (sUAS and uncrewed surface vessels)...
Red Cat Holdings develops and sells advanced all-domain drone and robotic systems (sUAS and uncrewed surface vessels) for defense, national security, and commercial applications. Revenue is primarily from hardware/software sales to U.S. military and government customers; accumulated deficit was $196.8M at December 31, 2025.