NEW YORK, May 28, 2026, 19:06 (EDT)
- Red Cat shares last traded at $14.15 in late trading, up roughly 32% from the previous close.
- The company said it’s taking Blue Ops’ U.S.-built Variant 7 uncrewed surface vessel to full-rate production.
- Drone stocks jumped after a report said the Trump administration is in talks to provide funding for certain U.S. drone companies.
Red Cat Holdings traded sharply higher Thursday, adding to a two-day surge after the company said it would ramp up maritime robotics production and drone stocks rallied in the U.S.
The Nasdaq stock traded at $14.15 as of 6:50 p.m. EDT, up around 32% from the last close. More than 77 million shares changed hands. That price came in after Nasdaq’s normal 9:30 a.m. to 4 p.m. hours, during after-hours trading.
Red Cat’s in focus now as its sector turns into a policy play. According to Reuters, which cited the Wall Street Journal, the Trump administration is discussing funding for some U.S. drone companies. That could mean debt or equity proposals. Reuters said it couldn’t confirm the story.
Red Cat didn’t get named by Reuters as being in those funding talks. Still, shares moved with the sector after Reuters said Red Cat, Kratos Defense, and AeroVironment were among U.S. drone stocks up in premarket trade on Thursday.
Red Cat gave investors a reason to pay attention later in the session. The company announced its Blue Ops maritime unit is scaling up Variant 7, or V7, for full-rate production. V7 is an uncrewed surface vessel built for U.S. and allied military work.
Blue Ops is going to full-rate production on Variant 7, company president Barry Hinckley said in a statement. “The mission demand is here now,” Hinckley said. He said the vessel is made for scale and can be set up for different customer missions. Red Cat Holdings, Inc.
Red Cat said the V7 is designed and made in Maine, as well as in Valdosta, Georgia, with research, development and testing handled in West Palm Beach, Florida. The company said the platform can be used for intelligence, surveillance and reconnaissance, and for military scouting and monitoring. It also listed force protection, harbor and coastal security, contested logistics, and payload-adaptable operations as supported uses.
Unusual Machines jumped 57% and AeroVironment added 18%. Kratos Defense was up almost 14% as other drone and defense tech stocks rallied. The S&P 500 and Nasdaq Composite both finished at new highs, with risk appetite strong across the U.S. market.
Red Cat picked up analyst coverage Wednesday as H.C. Wainwright’s Amit Dayal started the stock at Buy with a $20 target. Investing.com reported the call, saying the analyst pointed to Red Cat’s defense drone and all-domain robotics operations.
Red Cat had an active spring. The defense tech firm posted first-quarter revenue of $15.5 million, jumping 849% from the same period last year, and said it’s aiming for annual revenue of $150 million to $180 million in the near term. Net loss for the quarter came to $26.6 million, or 22 cents per share.
Red Cat sold around 23.9 million shares at $9.40 apiece, raising close to $225 million before fees, according to a May 14 filing. The company said it plans to use the new cash for general corporate and growth moves.
The trade isn’t without execution or policy risk. Government funding talks might leave out Red Cat, or deals might fall through. The company is still posting losses and flagged material weaknesses in its internal controls, plus legal and business risks in its latest quarterly filing. Drone sentiment could shift, defense orders may get pushed, or another stock sale could all hit the shares quickly.
Related articles: NASDAQ:RCAT
