A picture of a Quantix drone made by AeroVironment.
David Mcnew | Getty Photographs Information | Getty Photographs
AeroVironment shares fell 7% Tuesday after the protection contractor said it plans to supply $750 million in widespread inventory and $600 million in convertible senior notes due in 2030 to repay debt.
The drone maker stated it could use leftover funding for common functions equivalent to boosting manufacturing capability.
AeroVironment shares have soared 85% this yr, ballooning its market worth to about $13 billion.
Final week, shares of the Arlington, Virginia-based firm rallied on sturdy fourth-quarter outcomes, lifting larger as CNBC’s Jim Cramer known as it the “subsequent Palantir of {hardware}.”
Final month, the corporate additionally closed its $4.1 billion acquisition of space-related protection tech firm Blue Halo.
Earlier this month, President Donald Trump signed an executive order supposed to spice up drone manufacturing within the U.S. and crack down on unauthorized makes use of.
The corporate additionally has a excessive brief curiosity stage, which can have contributed to a number of the current positive factors, creating a brief squeeze. This phenomenon happens when a inventory worth surges, forcing these shorting the inventory to buy shares to cowl their positions and forestall losses.
Aerovironment 1 month inventory chart
