Why has the Electro Optic Systems share price soared 16% in 2 days?

The Electro Optic Systems Holdings Limited (ASX: EOS) share price has surged so far this trading week.

Shares in the defence and space technology company closed today’s session at $1.105 each, a gain of 10.5% on the day. Yesterday, Electro Optic shares gained 5.26%.

Let’s look into why investors are buying the stock this week.

What happened?

Electro Optic System’s subsidiary Spacelink announced that it had entered a cooperative research and development agreement with the US Army Space and Missile Defense Command Technical Centre on Monday.

The terms of the agreement include cooperation in developing alternative space communications pathways for Spacelink’s satellite relay system. 

This agreement will allow SpaceLink to gain a deeper insight into the US Army’s concept of operations and give the army the data it needs to support its interagency requirements.

Spacelink CEO Dave Bittinger said:

We are honored to work with USASMDC-TC to assure that our development efforts meet the Army’s needs. Sharing facilities, intellectual property, and expertise will elevate solutions for both the warfighter and industry, ultimately enhancing national security and U.S. dominance in space.

Electro Optic Systems share price snapshot

Even with this week’s rise, Electro Optic Systems shares are down almost 54% year to date and 74% over the past 12 months.

The company’s market capitalisation is currently $177 million.

The post Why has the Electro Optic Systems share price soared 16% in 2 days? appeared first on The Motley Fool Australia.

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More reading

• Top ASX shares to buy in August 2022
• Electro Optic Systems share price dips amid shock CEO resignation

Motley Fool contributor Matthew Farley has positions in Electro Optic Systems Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings Limited. 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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