Why the DroneShield (ASX:DRO) share price is soaring 7% today

The company's shares are nearing its 52-week highs.

| 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 is flying higher today following a positive release by the drone technology company.

During early afternoon trade, DroneShield shares are up 7.32% to 22 cents. In comparison, the All Ordinaries Index (ASX: XAO) is marginally up 0.1% to 7,864 points.

Woman operates drone flying overhead.

Image source: Getty Images

What did DroneShield announce?

Investors appear upbeat about the company's prospects, sending DroneShield shares higher.

According to its release, DroneShield said that it had received a $1.1 million grant award from the Australian government. The cash payment is recognised as a research and development tax incentive for its activities undertaken in 2020.

DroneShield CEO, Oleg Vornik touched on the award, saying:

DroneShield appreciates the substantial support it receives from the Australian Government at Federal and State level. We are a high-tech defence and homeland security business, employing over 30 engineers in Australia presently, and rapidly growing. This grant reflects the world-class cutting-edge R&D work done here in Australia.

The company noted that the grant will be reflected in the cash receipts for its third-quarter report. This is expected to be released sometime in October 2021.

Quick take on DroneShield

A global leader in drone security technology, DroneShield designs and develops detection systems that use specialised technology to protect people, organisations and critical infrastructure from drones.

Its multi-layered drone countermeasures include detection and disruption products which are much needed in the current environment.

DroneShield share price snapshot

It has been a positive 12 months for DroneShield shareholders, with the company's shares up 60%. However, during this time, the DroneShield share price has been volatile, moving between 13 cents and 25 cents.

Recently, its shares were trading for as little as 15 cents in early July and are now 22 cents. This reflects a gain of almost 50% in the space of just over a month.

DroneShield presides a market capitalisation of roughly $87.7 million, with approximately 400 million shares on its registry.

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 recommended DroneShield Ltd. The Motley Fool Australia has recommended DroneShield Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A man looking at his laptop and thinking.
Materials Shares

Core Lithium shares tumble after $120m capital raising for Finniss restart

It won't be long until the company is producing lithium again.

Read more »

A stopwatch ticking close to the 12 where the words on the face say 'Time to Buy'.
Cheap Shares

3 quality ASX shares to buy and hold until 2036

These aren’t struggling stocks and brokers remain highly bullish.

Read more »

A businesswoman exhales a deep sigh after receiving bad news, and gets on with it.
Share Market News

5 things to watch on the ASX 200 on Thursday

It looks set to be a tough session for Aussie investors today.

Read more »

Three young people in business attire sit around a desk and discuss.
Opinions

Top 3 ASX 200 shares I'd buy today with $12,000

These are the shares I'd be buying right now.

Read more »

A young boy reaches up to touch the raindrops on his umbrella, as the sun comes out in the sky behind him.
Share Market News

Why these ASX shares could be buys in today's volatile market

This solid trio could help investors earn income and weather uncertainty.

Read more »

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 »