Droneshield (ASX:DRO) share price moving on multiple product orders

The DroneShield Ltd (ASX: DRO) share price is lifting this morning following its announcement of multiple product orders.
The post Droneshield (ASX:DRO) share price moving on multiple product orders appeared first on The Motley Fool Australia. –

The DroneShield Ltd (ASX: DRO) share price is on the move this morning after announcing it received multiple orders for its latest product, the DroneSentry-X.

At the time of writing, the DroneShield share price is trading hands 3% higher at 16.5 cents a share.

It protects, it attacks

The DroneSentry-X is an on-the-move counter unmanned aerial system (C-UAS) that can be mounted on transportation such as vehicles and ships.

Customers ordered these systems in North America and Southeast Asia regions in both detection-only and detect-and-defeat variations.

Watch the product video at: #counterdrone #UAS #UAV #detection #disruption #onthemove

— DroneShield® (ASX:DRO) (@DroneShield) February 24, 2021

According to the update, the orders totalled $500,000 and are an initial trial purchase for the systems. Additional follow-up orders are already in discussions, with amounts yet to be confirmed. Proceeds from these orders are expected to be received throughout March, June, and September quarters.

This positive development comes a week on from the company winning a government contract from a Five Eyes country. That order was valued at $1 million, exceeding the original $500,000 trial order in June 2020.

CEO commentary and recent results

Prior to jump in share price this morning, DroneShield CEO Oleg Vornik commented on the orders:

DroneSentry-X offers a truly unique capability for directional awareness of asymmetric warfare vectors such as nefarious UAS used for reconnaissance and payload delivery.

With DroneShield’s expertise in waveform design, it provides a complete bubble of surveillance around the deployed area. The devices utilise our unique AI-based RF software… We look forward to delivering these initial sales, and expanding to repeat sales, as we have recently done with our other products.

Recent contract wins add to the growth trend of the drone security company. In February, DroneShield published its full-year results for 2020, which saw a 58% increase in revenue for the period.

While recent orders have been $1 million or less, the company maintains a high conviction sales pipeline of $100 million.

DroneShield share price surveilled 

The DroneShield share price has fared exceptionally well over the past 12 months. Companies within the defence space often make more ‘defensive’ investments due to the industry’s economic-agnostic nature. Typically, governments continue to spend money on defence regardless of recessions or impacts like COVID-19.

That might explain why the DroneShield share price has returned 60% in the last year. This compares to the S&P/ASX 200 Index (ASX: XJO), which returned 42% over the same period.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Mitchell Lawler 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.

The post Droneshield (ASX:DRO) share price moving on multiple product orders appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!