What pushed DroneShield’s (ASX:DRO) share price up today?

3 min read | May 16, 2022 06:37 PM AEST | By Ritwika

What pushed DroneShield’s (ASX:DRO) share price up today? — Image source: © Photodynamx | Megapixl.com

Highlights

DroneShield ended today’s trading on a positive note.

Experts believe that this share price push could be due to high demands for drone technology in Ukraine.

The overall Information Technology sector also performed well on the ASX today.

The shares of DroneShield Limited (ASX:DRO) closed 7.317% higher at AU$0.22 per share on the ASX today (16 May). Approximately 1.5 million shares of DroneShield were traded during the entire trading session on the ASX today.

The share price of DroneShield has gained almost by 29% on the ASX over the past 12 months. On the other hand, DroneShield’s year-to-date share price also gained over 22% on the ASX today (16 May).

Meanwhile, the S&P/ASX 200 Information Technology sector (ASX:XIJ) closed trading 2.138% higher at 1476.1 on the ASX today.

Why did DroneShield shares jump today?

Although there is no official announcement from the company that could justify the rise in share price of DroneShield, however, we assume that the increasing demands for drones in Ukraine must have influenced the share price of DroneShield.

DroneShield is an ASX-listed drone security service provider. The company is a worldwide supplier of Drones to militaries, police forces and national defence forces and private agencies.

Oleg Vornik, the CEO of DroneShield, has stated that the company has received various enquires from government agencies of Ukraine stating their requirement for DroneShield equipment after the Russia-Ukraine war.

DroneShield has already sent the first shipment of hand-held drone detection devices and Drone Gun to Ukraine. DroneShield’s Drone Gun is built around a technology that is used to disable enemy drones by jamming their electronic frequencies.

The payment for the first shipment delivered to Ukraine was paid by an anonymous European country. Vornik believes that the Morrison government might take the initiative to help fund the next shipment to Ukraine.

This could be one probable reason for the spike in DroneShield’s share price on the ASX today.

Another reason for DroneShield’s share price gain could be the performance of the entire information technology sector on the ASX today (16 May).

Furthermore, DroneShield also reflected robust financials in its performance during H1 FY22. The company reported an operating income of AU$10.466 million and a revenue worth AU$10.908 million in the given period. It also reflected the company’s strong ability to recover its business from a global pandemic.

Read more: DroneShield (ASX:DRO) shares in focus on quarterly update

About DroneShield:

DroneShield Limited is an ASX-listed information technology company that primarily deals with Artificial Intelligence (AI) based defence technology and counter-drone threats, along with Electronic Warfare applications. The company serves mainly the military, intelligence community, and government law enforcing agencies across the world.

DroneShield was established in the year 2016 with its headquarters in Sydney, Australia. The company currently holds a market capitalisation of AU$88.67 million.

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