Why did the Droneshield share price charge 10% higher today?

The Droneshield Ltd (ASX: DRO) share price surged on Wednesday amid the company securing a deal with a US government agency.

The company’s share price gained 9.59% to close at 20 cents. For perspective, the  S&P/ASX 200 Index (ASX: XJO) closed 0.3% higher today.

Let’s take a look at what went on with the Droneshield share price today.

$500,000 US Government agency repeat order

Investors bought up Droneshield’s shares after the company secured a new deal in the US.

The company advised the market it has received a repeat order worth $500,000 for its counter-drone defence system.

Droneshield expects to receive payment for the deal in the September quarter.

CEO Oleg Vornik said DronesShield is now at an “inflection point”. He also noted the company has multiple high-profile customers.

Vormik added the “next step” for the company will be achieving orders regularly in the multimillion dollars which he expects “to commence through 2H22”.

He added:

This repeat order from a customer with some of the most demanding and complex Government agency requirements globally, shows the industry leading capabilities of DroneShield products.

Droneshield provides artificial intelligence technology for unmanned aircraft systems (UAS) threats.

Share snapshot

The Droneshield share price is up more than 14% year to date, gaining 5% in the past week.

For perspective, the benchmark ASX 200 Index has shed about 8% in the last year.

Droneshield has a market capitalisation of nearly $86.5 million based on its current share price.

The post Why did the Droneshield share price charge 10% higher today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield Ltd. The Motley Fool Australia has recommended DroneShield Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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