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.

drone technology, drone defence, woman operating drone

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

Share Market News

Testing again

Read more »

Share Market News

Aaron Test 2

Read more »

Share Market News

Aaron Test

Read more »

Share Market News

JP Test

Read more »

Share Market News

JP Test

Read more »

Portrait of Discovery Fund portfolio managers Mark Devcich and Chris Bainbridge
Share Market News

Test

Portfolio managers Mark Devcich (left) and Chris Bainbridge. Image source: Discovery Fund test test

Read more »

a man in a hoodie grins slyly as he sits with his hands poised on a keyboard. He is superimposed with a graphic image of a computer screen asking for a password, suggesting he is a hacker.
Share Market News

Another ASX 200 company has been hit with a cyber incident. Here's what we know

Hackers have breached the systems of this ASX 200 company.

Read more »

a woman
Broker Notes

5 ASX 200 shares that inflation can't touch: expert

Regardless of whether you're a bull or a bear, cost pressures are a factor when buying stocks at the moment.

Read more »