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

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy hump day session for the ASX.

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

Scientists working in the laboratory and examining results.
Opinions

3 reasons to buy CSL shares today

The ASX biotech company has great growth potential this year.

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Share Fallers

Why Brightstar, EQ Resources, Novonix, and Pro Medicus shares are falling today

These shares are under pressure on hump day. But why?

Read more »

A happy family of four on holidays stand on a jetty and cheer.
Broker Notes

Down 40% in 2026, should you buy the big dip in Life360 shares?

A leading analyst offers his outlook for Life360 shares.

Read more »

Buy and sell on yellow paper with pins on them and several share price lines.
Broker Notes

Sell alert! Why this expert is calling time on Nuix and Brainchip shares

A leading analyst forecasts more pain to come for Brainchip and Nuix shares. But why?

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
Share Gainers

Why EOS, Humm, New Hope, and Sims shares are storming higher today

These shares are having a good session on hump day. But why?

Read more »

a man lies on his back on grass with his eyes shut and a contented look on his face as though he is dreaming
Broker Notes

With global populations ageing, are ResMed shares a good buy today?

A leading expert delivers his verdict on the outlook for ResMed shares.

Read more »