RCAT Stock Falls 58.5% to $7.79; Wall Street Maintains $22 Target on July 27

According to StockAnalysis, Red Cat Holdings (RCAT) shares closed at $7.79 on July 27, 2026, down 58.5% from their 52-week high of $18.78, with a market capitalisation of $1.19 billion. Wall Street consensus rating remains Strong Buy with a $22.00 price target, implying 182.4% upside, despite trailing twelve-month revenue of $54.57 million and a net loss of $75.51 million.

Gross margin deteriorated to 4.2% from 6.6% in the prior quarter, while the company cut 2025 revenue guidance to $34.5–37.5 million, approximately 44% below consensus, citing government shutdown delays and the Edge 130 launch postponement. Per Needham, the firm cut its target to $12 while maintaining a Buy rating, citing delays to the US Army's Short Range Reconnaissance Tranche 2 programme, the central bull-case catalyst, which slipped to first quarter 2026.