Here's why the Ava Risk (ASX:AVA) share price is edging higher today

The Ava Risk Group (ASX: AVA) share price is edging higher after a multi-site rail contract award win. Here are the details.

| 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 Ava Risk Group Ltd (ASX: AVA) share price is edging higher today after the company announced that it has won a multi-site rail contract award.

At the time of writing, shares in the risk management services and technologies company are up 2.9% to 52.5 cents.

A row of padlocks on a chain, indicating a share price for an ASX security company

Image source: Getty Images

Ava Risk's latest contract

Investors are pushing the Ava Risk share price higher following the company's latest contract win.

In this morning's release, Ava Risk announced it has secured a $1.84 million deal to deploy its Aura Ai sensing solution to a number of major rail facilities in South America.

Aura Ai-2, developed by Future Fibre Technologies (FFT), is an advanced and versatile perimeter intrusion detection system. The product platform applies artificial intelligence to detect and locate intruders who climb, cut or lift perimeter fences.

The company's Aura Ai sensing product will be installed across a multi-site program to upgrade security systems. This will be completed by fully-integrating the package with the customer's existing video management software and CCTV system.

Ava Risk noted that its first purchase order has already been received, valued at $0.61 million. The initial rollout is scheduled for early Q4 FY21, with the remaining sites completed before the end of the quarter.

Word from the manager

Ava group CEO Rob Broomfield welcomed the deal, saying:

FFT Aura Ai-2 was the solution selected to protect the rail sites, due to our exceptional event classification capability, extended sensing distance, and cut resilience capability.

A further key factor in the contract win was FFT's previous success in protecting railway infrastructure and the company's strong reputation across the broader transportation sector.

Ava Risk share price summary

The Ava Risk share price has jumped to more than 400% over the past 12 months. However, its shares are down around 10% year-to-date.

Based on the current share price, Ava Risk has a market capitalisation of $123.2 million, with 241.6 million shares outstanding.

Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

More on ASX Share Market News

A construction worker sits pensively at his desk with his arm propping up his chin as he looks at his laptop computer.
Gold

Down 16%, could this $2 billion activist bet wake up Northern Star shares?

A major activist investor is turning up the pressure.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Broker Notes

Morgans says these ASX shares could return 48% to 95%

The broker is recommending these shares to investors this week.

Read more »

Sad man sitting at desk and grabbing his head as he looks at a laptop.
ASX Share Market News

5 things to watch on the ASX 200 on Friday

It looks set to be a poor finish to the week for Aussie investors.

Read more »

Farmer holding grains in his hands.
Broker Notes

Why this broker thinks GrainCorp shares are a buy after yesterday's fall

This broker is expecting a rebound.

Read more »

A young man holds a small bottle of beer as he slumps sadly on one elbow in a comfortable chair with his head propped in his hand and staring into space with a dejected look on his face.
Share Gainers

Here are the top 10 ASX 200 shares today

It was not a pleasant day on the ASX...

Read more »

Doctor with stethoscope holding a tablet and smiling.
Healthcare Shares

ASX healthcare shares are 39% higher since June. Are you missing out?

Healthcare stocks endured a long slump before the sector pivoted three months ago.

Read more »

A man holds his hand to his chin with a furrowed brow, making an expression of puzzlement or confusion.
Share Fallers

Top 3 ASX 200 shares now below their 200-day moving average

Are these businesses still a buy?

Read more »

Six smiling office colleagues stand in a row and look at the camera.
Broker Notes

9 ASX 200 shares earning strengthened buy ratings this week

Brokers retained a positive view on Santos, Goodman, AMP, Telstra, and other shares this week. 

Read more »