Red Cat Holdings, Inc. (RCAT) Stock Analysis
Industrials · Aerospace & Defense
Sell if holding. Engine safety override at $8.98: Quality below floor (1.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.4/10 and A.R:R 7.8:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 27%; Below-average business quality; Negative price momentum.
Red Cat Holdings is a U.S.-based provider of drone and robotic systems for defense and public safety, with products including the Black Widow/Teal 2 sUAS (selected for U.S. Army's Short Range Reconnaissance Program of Record in Nov 2024), the FANG FPV drone, FlightWave VTOL... Read more
Sell if holding. Engine safety override at $8.98: Quality below floor (1.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.4/10 and A.R:R 7.8:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 27%; 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 4.4/10, moderate confidence.
Passes 7/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 85d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: aggressive.
Recent Developments — Red Cat Holdings, Inc.
Latest news
- Here's How Much $1000 Invested In Red Cat Holdings 5 Years Ago Would Be Worth Today — benzinga May 19, 2026 positive
- Stock Market Today: Dow Jones Futures Fall, Nasdaq Gains As Trump Takes Big Tech Leaders To China— Nvidia, Nextpower, Re — benzinga May 13, 2026 neutral
- Why Is Red Cat Stock Tumbling Today? — benzinga May 13, 2026 negative
- 12 Industrials Stocks Moving In Wednesday's Pre-Market Session — benzinga May 13, 2026 neutral
- QuickLogic Posts Downbeat Q1 Results, Joins Resideo Technologies And Other Big Stocks Moving Lower In Wednesday's Pre-Ma — benzinga May 13, 2026 negative
Generated 2026-05-20T21:06:21Z.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomerU.S. Federal Government military agencies10-K Item 1: 'Our sales and marketing efforts have been focused on developing relationships with the military agencies of the U.S. Federal Government.'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
3 floor-breakers
Unprofitable operations — net margin -138.4%. Quality floor flags this regardless of sector context.static
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.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 $8.98: Quality below floor (1.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.4/10 and A.R:R 7.8:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 27%; 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 $8.11. Score 4.4/10, moderate confidence.
Take-profit target: $18.49 (+116.3% upside). Prior stop was $8.11. Stop-loss: $8.11.
Concentration risk — Customer: U.S. Federal Government military agencies; Quality below floor (1.8 < 4.0).
Red Cat Holdings, Inc. trades at a P/E of N/A (forward -23.8). TrendMatrix value score: 5.4/10. Verdict: Sell.
11 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 is a U.S.-based provider of drone and robotic systems for defense and public safety, with products...
Red Cat Holdings is a U.S.-based provider of drone and robotic systems for defense and public safety, with products including the Black Widow/Teal 2 sUAS (selected for U.S. Army's Short Range Reconnaissance Program of Record in Nov 2024), the FANG FPV drone, FlightWave VTOL fixed-wing ISR aircraft, and Blue Ops uncrewed surface vessels. Sales are primarily to U.S. military agencies; the company had 244 employees as of December 31, 2025 and an accumulated deficit of $196.8M. Revenue is transactional with no long-term purchase commitments.