Shares of the AgEagle Aerial Systems, Inc. (UAVS) stock were falling today on May 26, 2021, amid the announcement of a sales agreement. Prior to this announcement, Shareholders Foundation, Inc. announced the lawsuit for certain investors of UAVS stock. The UAVS stock price saw a downtrend of 3.48% to drop at $4.71 a share at the time of this writing after gaining as much as 4.05% at the previous closing. Let’s understand the recent events of UAVS in detail.
UAVS stock Sales Agreement:
UAVS stock on May 25, 2021, announced the at-the-market sales agreement with Stifel and Raymond James according to which UAVS stock would sell upto $100 million in common stock over time.
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On the same day, the lawsuit was announced by the Shareholders Foundation for certain investors which were previously filed against UAVS stock due to alleged violations of securities laws. The defendants were alleged of false or misleading statements regarding the AgEagle partnership with Amazon or failed to disclose that UAVS stock had not partnered with Amazon. The defendants were accused of contributing to the rumor of AgEagle’s partnership with Amazon that resulted in misleading statements related to UAVS business and operational updates at relevant times.
Selection of New Chief Executive Officer:
On May 24, 2021, UAVS stock did announce the selection of Brandon Torres Declet as the new Chief Executive Officer of the AgEagle by the board members. Before this announcement, Mr. Brandon was serving as Chief Operating Officer of the UAVS stock and had a tremendous record in the drone industry.
Financial View of UAVS stock:
- On May 17, 2021, UAVS stock announced first quarter 2021 financial results according to which UAVS stock’s revenue for the first three months of 2021 surpassed $391,000 revenue of same period of 2020 to reach $1.7 million.
- AgEagle’s offering of higher-margin drone sensors and software solutions resulted in an improved gross profit margin from 55% to 63% in the reported quarter.
- Net loss for UAVS stock in the first quarter of 2021 was $2.9 million, or $(0.5) per share as compared to $403,000, or $(0.03) per share in the same period of the prior year.
- UAVS stock had cash of $24.2 million in its balance sheet at the end of March 2021 while this cash balance was $23.9 million at the end of December 2020.
Conclusion:
UAVS stock price is declining in response to the announcement of a recent couple of news related to it. First-quarter financial results point to the positive growth of UAVS stock over the year. In a nutshell, investors need to know the nitty-gritty of the UAVS stock before adding it to the portfolio.
