Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) are trading higher Monday after the joint U.S.-Israel attack on Iran over the weekend. Also, an autonomous precision robotics joined a consortium organized by Red Cat.
Defense Stocks Jump After Iran Conflict
U.S. and Israel launched attacks on Iran over the weekend that killed Iranian Supreme Leader Khamenei. This action led to retaliatory attacks in the region, which continued into Monday. According to the New York Times, Trump said on Sunday that the attacks could last four to five weeks.
Several defense stocks, including Lockheed Martin, Palantir and Northrop Grumman are rising due to the conflict. Oil stocks are also sensitive to military activity in the region.
Allen Control Systems Joins Red Cat Futures Initiative
Allen Control Systems joined the Red Cat Futures Initiative, the company’s industry-wide consortium accelerating advanced autonomous systems for modern warfare. ACS will collaborate with Red Cat to evaluate integration opportunities between its Bullfrog autonomous counter-drone system and Red Cat’s secure ISR platforms and command and control architecture.
The first Bullfrog integration will be with Blue Ops, Red Cat’s maritime division, equipping its Uncrewed Surface Vessels (USVs).
“The rapid proliferation of small unmanned systems has reshaped the modern battlefield and requires equally advanced countermeasures,” said Jason Gunter, VP of Tech & Innovation at Red Cat. “Allen Control Systems brings innovative autonomous precision technology that complements our Family of Systems approach,”
The Futures Initiative connects leading robotics and autonomy innovators to accelerate the deployment of advanced capabilities, including artificial intelligence, computer vision, target acquisition, swarming, and resilient control systems. The initiative is designed to reduce integration friction and speed time to fielding.
“U.S. and allied nations are seeking cost-effective and scalable counter-drone systems to provide a new layer of protection on the move and at the edge,” said Mike Wior, co-founder and CEO, ACS.
Stock Trades Higher In Regular Hours
RCAT Price Action: Red shares are climbing with a 19.57% increase at $13.93 at the time of publication on Monday. The stock has reached as high as $15.35 and dipped to a low of $12.60. Trading volume is bustling with 25.6 million shares changing hands. The stock is 17.9% below its 52-week high.
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