The shares of AgEagle Aerial Systems (UAVS), a leading provider of commercial drones, have surged in price recently on news that one of its wholly-owned subsidiaries is joining the Blue sUAS 2.0 list. But given that the company is still struggling to grow organically is the stock a safe bet now? Read more to find out.Commercial drone technology company AgEagle Aerial Systems, Inc. (UAVS), which is headquartered in Wichita, Kansas, designs and manufactures drones for the precision agriculture industry in the United States and internationally. Its shares have soared 4.9% in price over the past five days thanks to its wholly-owned subsidiary, senseFly’s, inclusion in the Blue sUAS 2.0 List of Drone Suppliers, which was published by the U.S. Defense Innovation Unit earlier last month. However, UAVS’ stock price has tumbled 21.8% over the past three months and 47.7% over the past six months to close the last trading session at $2.87.
Although this leading drone solutions provider’s strategic acquisition of award-winning aerial intelligence solutions company, Measure, has helped improve its revenue in its last reported quarter, its high operational losses have reduced investor interest in the stock. The stock is currently trading below its $3.05 and $5.55 respective 50-day and 200-day moving averages, which indicates a downtrend.
In addition, the company’s share issuances to fund its growth could be worrisome for investors.