5 Penny Stocks with Upcoming Growth Catalysts

4. Red Cat Holdings, Inc. (NASDAQ:RCAT)

Number of Hedge Fund Holders: 2

Share Price as of March 14: $2.50

Red Cat Holdings, Inc. (NASDAQ:RCAT) was incorporated in 1984 and is based in Humacao, Puerto Rico, providing First Person View (FPV) video goggles and equipment to the drone industry. 

On March 14, Red Cat Holdings, Inc. (NASDAQ:RCAT) stock gained 2% in premarket trading after the company announced that its subsidiary, Teal Drones, was awarded a contract by the Department of Defense’s Defense Innovation Unit and the U.S. Army to develop a compact next-generation aerial system that can be used for surveillance and other duties. The aerial system will be focused on building advanced autonomous capabilities rather than having a pilot or controller at the helm. 

Insider Monkey’s Q4 database shows that Sabby Capital and Citadel Investment Group were the lone funds to own stakes in Red Cat Holdings, Inc. (NASDAQ:RCAT), with positions worth $2.94 million, compared to 4 funds in the prior quarter, holding stakes in the company worth close to $5 million.