☰
On Tuesday, the company announced that CEO and Chairman Jeffrey Thompson would serve as interim CFO until the filing of Red Cat’s annual report.
Red Cat Holdings (RCAT) shares dropped nearly 7% in morning trade on Tuesday ahead of the company’s third quarter earnings, scheduled for after the bell.
Analysts expect Red Cat to report a net loss of $0.09 per share, while revenue is projected to climb 28% year over year to $7 million, according to Koyfin data.
The decline comes amid leadership changes at the drone technology firm.
Last week, Red Cat appointed Christian Koji Ericson as its new CFO. Ericson, previously Head of Finance and Accounting at Western Steel Buildings, was initially set to assume the role on March 17.
However, on Tuesday, the company announced that CEO and Chairman Jeffrey Thompson would serve as interim CFO until the filing of Red Cat’s annual report.
Despite the stock’s recent weakness amid broad market concerns, analysts remain optimistic about its long-term potential.
Red Cat has an average price target of $13.33, implying an upside of nearly 150% from current levels.
Earlier this month, Northland analyst Michael Latimore initiated coverage with an ‘Outperform’ rating and a $13 price target, according to TheFly.
Latimore highlighted the U.S. Army’s recent short-range reconnaissance drone contract for Red Cat’s Black Widow drone, which he said triggered "an avalanche of incremental interest."
He forecasts the company will generate $80 million in revenue in 2025 and $150 million in 2026.
Red Cat is also launching a mid-range drone, the Edge 130 Blue, which he believes will further expand the company’s market opportunities.
However, on Stocktwits, retail sentiment around Red Cat dipped lower into ‘bearish’ territory, amid falling retail chatter.
Some investors expressed impatience over the lack of new contract announcements, signaling growing frustration with the company’s pace of expansion.
Red Cat shares have lost more than half their value in 2025. However, the stock remains one of the market’s top performers over the past year, surging nearly 580%.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
Read also: Nvidia Stock Slips After Amazon Reportedly Undercuts AI Chip Prices — Analysts Expect ‘Wake Up Call’ From Jensen Huang’s GTC Keynote
subscribe to Asianet Newsable WhatsApp channel by clicking here.
