RCAT Stock Records Biggest Single Day Gains In More Than Four Years – And It’s Not Just Due To A Drone Play

• The vessel can be customized with different sensors, payloads, and communication systems based on mission needs, the company said.
• RCAT stock breached its 100-DMA for the first time in over a month.
• Drone stocks have seen strong gains after The Wall Street Journal reported that the U.S. government is considering financial support for domestic defense technology firms.

Shares of Red Cat (RCAT) soared around 40% on Thursday, breaching their 100-day moving average for the first time in over a month, as a fresh production update from its maritime division added to broader market enthusiasm surrounding drone stocks. 

RCAT shares clocked their biggest single-day gains in more than four years. The stock is also on track to end a sixth straight session in the green, having already added around 68% during the rally.

RCAT’s Latest Surface Vessel Moves To Production

On Thursday, Red Cat said that its maritime division, Blue Ops, is moving into full-rate production of the Variant 7 (V7), an uncrewed surface vessel (USV) designed for U.S. and allied forces. The autonomous maritime platform is designed for operations such as surveillance, harbor security, logistics, and force protection.

The vessel can be customized with different sensors, payloads, and communication systems based on mission needs, the company added.

Red Cat said that its recently acquired Apium Swarm Robotics will strengthen the V7’s autonomous capabilities. Apium Swarm Robotics develops software enabling drones and robotic systems to operate together in real time.

Drone Stocks Surge On Funding Report

Shares of several drone companies jumped on Wednesday after The Wall Street Journal reported that President Trump’s administration is considering financial support for domestic defense technology firms to boost U.S. drone manufacturing.

The discussions involve the Pentagon and private drone companies and could include loans and government ownership stakes in selected firms, the report added. Red Cat manufactures a type of short-range reconnaissance drone called the Black Widow.

Retail Says RCAT Is Undervalued

Retail sentiment surrounding RCAT on Stocktwits turned ‘extremely bullish’ from ‘bullish’ a day earlier, while message volumes were ‘extremely high.’

One user highlighted areas where the USV could offer advantages and called the stock undervalued.

Another user said momentum will take it to $20. It’s currently trading around $15

The stock has gained around 84% this year.

Read also: AKTX Stock Shoots 50% Higher To Head Toward Best Month In Nearly 11 Years – What’s Fueling This Super Rally?

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