Yes! My 9 year old Kona has been doing the same thing for years with her stuffed bunny. She carries it around in her mouth while walking around the house. And she makes a meow that sounds like a long, drawn-out call, which is muffled by the bunny of course.

I always thought that she was acting like a momma cat with a kitten, but she never had a litter. Maybe it's instinct?