DroneShield share price higher on major US government order

The DroneShield Ltd (ASX: DRO) share price is on the move again on Thursday.

In morning trade, the counter drone technology company’s shares were up as much as 9% to 75.5 cents.

However, its shares have since pulled back and are now trading only a touch higher.

What’s going on with the DroneShield share price?

Investors were bidding the company’s shares higher this morning after it announced another major contract win.

According to the release, DroneShield has received a repeat order of $4.3 million from a U.S. Government customer for a number of its handheld C-UAS systems.

The company is moving quickly and expects the delivery to be complete over the next 15 days, using available stock on hand.

It highlights that it has been working with this customer for several years, with a number of smaller preceding orders. However, this is the first material contract from the customer.

The even better news is that “subsequent material larger orders are expected in near term.”

Though, the exact timing and quantum of future orders will be advised to market as further information becomes available.

DroneShield’s US CEO, Matt McCrann, commented:

DroneShield products have undergone extensive evaluations from a number of U.S. Government agencies in the last several years, and we’re honored by the customer relationship we have and pleased to start seeing the results of these efforts.

In addition to market leading product performance, the ability for us to rapidly deliver DroneShield solutions was important to the customer. We’re proud to be able to do so in support of their urgent operational requirements, as drone threats continue to rapidly escalate.

While this is great news, it seems that a touch of market volatility has started to overshadow it, causing the DroneShield share price to give back its gains.

The post DroneShield share price higher on major US government order appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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 no position in any of the stocks mentioned. 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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