DroneShield (ASX:DRO) share price has rocketed today

The Droneshield share price is up more than 23% after the company announced a deal with the US Department of Defence.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The DroneShield Ltd (ASX: DRO) share price blasted up by 26.67% today within minutes of announcing it had obtained funding from the United States Department of Defense (DoD). DroneShield manufactures systems to detect and disrupt drone activity. This range of non-ballistic technologies includes base stations and field use weapons. 

What moved the DroneShield share price?

The company announced targeted funding for the development of its DroneShieldComplete Command-and-Control (C2) system. This is an intuitive and feature rich C2. It provides real time alerting, tracking and reporting information. The DoD is working with the company to provide funding for an agreed list of feature  enhancements. In addition, the project is expected to span over several months. Accordingly, the DoD is expected to make multiple purchases of DroneShield products to run on the enhanced control system.

Investors have seen a lot of good news that has impacted the DroneShield share price in recent time. Specifically, orders from 2 European countries, including one new client. As well as a successful deployment of its DroneSentinel system at a medium-sized European Airport. 

Some of the companies other recent deployments during CY20 include EU Police 4-year framework agreement for DroneGun Tactical units, European Ministry of Defence purchase of DroneShield command and control systems, as well as several other orders for anti-drone technology.

What did management say?

DroneShield CEO Oleg Vornik said the project underscored the company's leadership not only as a product/sensor manufacturer, but also as an integrator of fixed site and mobile C-UAS systems. He said:

We are proud to be working with the United States Department of Defense, one of most demanding defence customers globally, on this project to ensure our DroneShieldComplete C2 stays at the cutting edge of customer requirements.

This contract is a material milestone in cementing our close working relationship with the largest defence customer globally. In addition to expected purchases associated with this paid development contract, further orders for other DroneShield solutions are expected as part of developing a trusted supplier relationship with this customer.

Droneshield share summary

The Droneshield share price is up by 23.33% at the time of writing. Over the past month it has risen by 43.4%. The company achieved revenue from customers of $3.07 million for the 1H20 half-year period, an increase of 29% relative to the prior half-year. Moreover, it continues to progress a formal contract in relation to the previously announced $70–$85 million Middle Eastern bid.

Motley Fool contributor Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Three guys in shirts and ties give the thumbs down.
Broker Notes

Experts name 3 popular 200 ASX shares to sell now

Let's find out why analysts are feeling bearish about these shares.

Read more »

Five happy miners standing next to each other representing ASX coal mining shares which some brokers say could pay big dividends this year
Broker Notes

7 ASX mining shares to buy for Christmas amid upgrades from Macquarie

Macquarie has boosted its outlook for these seven ASX mining stocks. Let’s see why.

Read more »

A man in a business suit scratches his head looking at a graph that started high then dips, then starts to go up again like a rollercoaster.
Healthcare Shares

Is Sigma Healthcare share a healthy buy, after hitting new lows?

The Chemist Warehouse merger and ageing population might boost this stock's appeal.

Read more »

A male ASX 200 broker wearing a blue shirt and black tie holds one hand to his chin with the other arm crossed across his body as he watches stock prices on a digital screen while deep in thought
Share Market News

5 things to watch on the ASX 200 on Tuesday

Here's what to expect on the Australian share market today.

Read more »

Man looking at digital holograms of graphs, charts, and data.
Share Market News

This new ASX stock has returned 70% since January

This new stock might get a lot of attention...

Read more »

A female CSL investor looking happy holds a big fan of Australian cash notes in her hand representing strong dividends being paid to her
Opinions

2 strong Australian stocks to buy now with $10,000

These businesses have a strong outlook for long-term growth.

Read more »

A neon sign says 'Top Ten'.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a Garfield kind of Monday for investors.

Read more »

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements
Broker Notes

Buy, hold, sell: Catapult, Step One, WiseTech Global shares

Morgans has given its verdict on these shares. Are they buys, holds, or sells?

Read more »