Red Cat Shares Surge 40% on Variant 7 USV Production and Robotics Integration
RCAT•Red Cat shares surged 40%, its largest one-day gain in over four years, breached the 100-day moving average and extended a six-day rally adding about 68%. The jump followed full-rate production of the Variant 7 customizable uncrewed surface vessel and integration of Apium Swarm Robotics software, boosting defense revenue prospects.
1. Market Reaction
Shares of Red Cat jumped 40% in a single session, marking the biggest one-day gain in over four years. The rally breached the 100-day moving average for the first time in more than a month and extended a six-day winning streak that has added about 68% to the stock’s value.
2. Variant 7 Production
Red Cat’s maritime division, Blue Ops, has entered full-rate production of the Variant 7 uncrewed surface vessel. The USV is designed for surveillance, harbor security, logistics and force protection, with modular payload bays for sensors and communication systems.
3. Robotics Integration
The company integrated software from its recent Apium Swarm Robotics acquisition to enhance autonomous coordination between drones and maritime platforms. This addition aims to improve real-time swarm operations and bolster mission versatility.
4. Defense Funding Outlook
Investor enthusiasm was further fueled by reports that the U.S. government may provide financial support to domestic defense technology firms, a move expected to benefit drone and unmanned systems manufacturers like Red Cat.
