This ASX drone tech stock just hit a record high. Here’s why investors are piling in

Elsight Ltd (ASX: ELS) has gone from under-the-radar to one of the most talked-about tech stocks on the ASX.

The drone connectivity specialist is extending its rally today as buying momentum continues to build.

At the time of writing, Elsight shares are up 5.51% to $4.02. Earlier in the session, the stock briefly touched $4.03, the highest level it has ever traded.

The move caps off an extraordinary run. Elsight shares are up almost 45% over the past month and more than 1,032% over the past year, making it one of the strongest performers on the ASX.

What does Elsight do?

Elsight is a technology company focused on secure communications for drones and unmanned systems.

Its core product, called Halo, allows drones to stay connected over long distances by combining multiple networks, including cellular, satellite and radio links, into one stable connection.

This type of technology is critical for drones used in defence, public safety, industrial inspections and emergency services. It allows drones to fly beyond the operator’s line of sight while maintaining reliable control and live data feeds.

Strong momentum behind the scenes

Over the past year, Elsight has delivered a string of positive updates, including growing customer adoption, expanding international partnerships and improving financial performance.

The company reported record revenue in 2025 and also reached cash flow positive, marking an important milestone.

Recent contract wins, particularly in the US and Europe, have helped reinforce confidence that Elsight’s technology is gaining real commercial traction.

Management buying shares sends a clear signal

Over the past year, multiple Elsight directors have bought shares on market, often at prices well below current levels. These purchases have not been one-off trades, but a series of repeat buys across different points in the rally.

Most recently, executive director David Furstenberg and non-executive chairman Ami Shafran both bought 20,425 shares each in early February 2025 at around 36.8 cents per share. Earlier purchases were also made throughout 2024, with directors buying shares in the 30 to 50 cent range, long before the stock’s recent surge.

Non-executive director Howard Digby has also been an active buyer, adding shares on several occasions during 2024 at prices between 35 cents and 44.5 cents.

Keep in mind that this buying activity stands out given how much the share price has since risen.

What investors should keep in mind

Despite the impressive gains, Elsight remains a small, fast growing tech stock, and that comes with risk.

The share price has moved very quickly, so periods of volatility should be expected. The company is also not widely covered by major brokers, meaning sentiment can shift sharply on news flow.

Still, the broader outlook is hard to ignore. With drone usage expanding globally and secure connectivity becoming essential, Elsight appears well placed in a growing market.

The post This ASX drone tech stock just hit a record high. Here’s why investors are piling in appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.