The DroneShield Ltd (ASX: DRO) share price has plunged 29% following a decision by management.
DroneShield says it provides AI-based platforms for protection against advanced threats such as drones and autonomous systems. Customers include military, intelligence community, government, law enforcement, critical infrastructure and airports.
DroneShield share price sinks
It was only earlier this week that the company announced a positive update that it had won another contract. But, today investors have learned that management has reportedly sold some shares.
The decline was seemingly spurred by reporting from Bloomberg that the DroneShield chief executive officer Oleg Vornik has reportedly sold A$49.5 million of DroneShield shares.
Considering the company has a market capitalisation of $3 billion, according to the ASX, it’s a noticeable sale.
There’s a saying in the investment world that leadership figures only buy shares on the market for one reason – they think the share price is good value for the long-term.
However, it can be a worrying sign when management sell shares.
Sometimes reasons are given such as to pay a tax bill, pay for a property or to diversify their wealth. But, a sale can raise questions. Why sell now at this valuation?
Investors in DroneShield shares don’t appear to want to wait around to find out.
For a high-flying ASX stock like DroneShield, it’s normal for there to be volatility. But, a fall of around 30% is very painful considering and it’s now down 60% in the last month.
Is the DroneShield share price a buy?
It’s very difficult to judge what good value for this business is.
The company is still up more than 200% in 2025 to date, but new investors are nursing a big decline. It’s more interesting at this lower level – the business continues to win contracts and it’s reaching profitability.
I’m not looking to buy shares today, but it’s an interesting business to keep an eye on.
