How has the DroneShield share price gained 90% in a month?

It’s been an extraordinary day for the DroneShield Ltd (ASX: DRO) share price this Thursday. 

Yesterday, the Droneshield share price closed the day at 68 cents a share. However, at the time of writing, those same Droneshield shares are going for 76 cents each, up a whopping 11.76% for the day.

76 cents per share happens to be a new record-high share price for the company.

Today’s gains for Droneshield shares compare against a 0.05% loss for the broader All Ordinaries Index (ASX: XAO) this Thursday thus far.

But it gets even better for Droneshield investors. Today’s move means that the Droneshield share price has now gained an eye-watering 92.3% over the past months alone.

Yep, this time in January, this company was asking just 39 cents a share. Check that out for yourself below:

The funny thing is that we haven’t heard much in the way of news or announcements from Droneshield. Not in February thus far anyway, and certainly not today.

So it’s a bit of a mystery why this counter-drone technology stock is experiencing such a dramatic surge in valuation.

Why has the DroneShield share price gained 90% in a month?

Perhaps one thing we can point to is a seeming acceptance by ASX investors that Droneshield, as my Fool colleague Bernd put it earlier this month, “finds itself offering the right suite of products at the right time”.

With conflicts raging around the world, drones are an ever-growing feature in modern warfare. And that makes the anto-drone technology that Droneshield specialises in a valuable commodity. Earlier this month, we also looked at how a major investment in combat drone technology by the Federal Government was boosting the Droneshield share price at the time.

But the company is also making tangible progress on its balance sheet. Back in January, we covered Droneshield’s announcement that the company has hit a record $48 million in customer cash receipts and grants over the three months to 31 December 2023.

As we reported at the time, this figure was five times larger than the next largest quarter on record. Additionally, Droneshield’s $73.5 million total in cash receipts and grants for the 2023 calendar year was five times more than what the company reported in 2022.

So clearly, investors are getting caught up in what looks like a compelling growth story. Let’s see where the Droneshield share price heads to next.

The post How has the DroneShield share price gained 90% in a month? appeared first on The Motley Fool Australia.

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More reading

• Why Boral, Dicker Data, Droneshield, and Novonix shares are charging higher
• Forget Fortescue shares: This ASX stock could be poised for a bull run in 2024
• Up 80% in 6 months, is a monumental earnings boom just around the corner for this tiny ASX stock?
• Why is the DroneShield share price jumping to a 52-week high today?

Motley Fool contributor Sebastian Bowen 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. The Motley Fool Australia has recommended DroneShield. 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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