The S&P/ASX 200 Index (ASX: XJO) gained 0.5% in June, while DroneShield Ltd (ASX: DRO) shares had a month to forget.
On 29 May, shares in the ASX 200 drone defence company closed trading for $3.39. When the closing bell rang on 30 June, shares were swapping hands for $2.42 apiece.
This saw the DroneShield share price down a painful 28.6% over the month just past.
Image source: Getty Images
Why did DroneShield shares get hammered in June?
Looking back over June, there was no single event I can pinpoint that put DroneShield shares under such heavy selling pressure.
Part of the retrace may have been driven by hopes of a successful peace deal in the Middle East, which could have a longer-term impact on demand for drone defence technologies.
It's also likely that some investors have been questioning just how much future growth is already priced into the ASX 200 defence stock. Indeed, despite the recent slide, investors who bought DroneShield shares 18 months ago will still be sitting on gains north of 217%.
Now, here's what the company was up to in June.
What's been happening with the ASX 200 drone defence stock?
After closing down 8.6% on 1 June on no fresh news, DroneShield shares gained 3.6% on 2 June after the company announced that it had received a $24.9 million contract to support the US Department of War's Joint Interagency Task Force 401.
Under the contract, DroneShield will supply the DoW with mobile and fixed site counter-drone solutions, including hardware, subscriptions, warranties, and services.
Commenting on the DoW contract, DroneShield CEO Angus Bean said:
The award builds on DroneShield's continued momentum in the US market and reinforces the company's role in supporting organisations tasked with protecting personnel, assets, infrastructure, and operations against emerging aerial threats.
On 15 June, DroneShield shares slipped 1.4% despite the company reporting on its first Counter-Unmanned Aerial System (C‑UAS) made in Europe.
Commenting on the European production milestone, DroneShield chief commercial officer Louis Gamarra said:
This is just the beginning, as DroneShield expands its production capabilities into Europe. With a strong pipeline of next-generation products coming online, European customers can have confidence that these capabilities will be built and supported within the EU.
DroneShield shares also failed to liftoff on 22 June, closing down 3.3% on the day, despite the company reporting the appointment of retired Rear Admiral Lee Goddard as an independent non-executive director.
DroneShield chairman Hamish McLennan noted, "Lee brings an exceptional combination of defence, national security, government and board experience to DroneShield."
