Ageagle Aerial Systems Inc (NYSEAMERICAN: UAVS) is flying early on in the trading session this morning, and for good reason. The company, focused on drone imagery and data analytics for the sustainable agriculture market, said that it has expanded an existing partnership. As you can imagine, the expanded partnership is a point of excitement for investors who are sending the stock on a run for the top. Today, we’ll talk about:
- The expanded partnership;
- why the run in UAVS stock may be far from over; and
- what we’ll be watching for ahead.
UAVS Climbs On Partnership News
As mentioned above, AgEagle Aerial Systems is having an incredibly strong start to the trading session this morning after announcing partnership news. In a press release issued early this morning, the company said that it expanded its partnership with The Climate Corporation, a subsidiary of Bayer. Under the expanded partnership, the two companies will work together to introduce advanced aerial imagery analytics to farmers.
Through the UAVS and The Climate Corporation partnership, farmers will be able to share the images from FarmLens to their FieldView account and compare the images along side other valuable farming metrics.
In a statement, Barrett Mooney, CEO at UAVS, had the following to offer:
As we continue to build upon Agribotix’s partnership with The Climate Corporation, offering seamless integration between FarmLens and the FieldView platform will provide farmers with more robust crop analytics… These analytics will allow farmers and agribusinesses to better understand yield limiting factors, further promoting supply chain visibility and sustainability for commodities down to the field level.
Why The Run Could Go Far Higher
When we see runs like this, I like to look into the chart to see if the movement will gain steam or fizzle out. This one has the potential to gain steam. The truth is that before the news UAVS was on a strong down trend. The news ultimately formed support. However, while downtrends are taking place, we can expect that short interest is high, and for this stock, that’s the case. With the positive news and short interest, we could see a short squeeze take this stock far higher.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news leads to moves in the market. In the case of AgEagle Aerial Systems, the news proved to be positive. After all, the partnership will likely expand the company’s user base, leading to stronger revenues. This, combined with the fact that short interest is high and a squeeze may be on the horizons, leads me to believe that this stock could go higher. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:04), UAVS is trading at $1.25 per share after a gain of $0.27 per share or 27.88% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on UAVS. In particular, we’re interested in following the story surrounding the partnership and the revenue growth that it brings. We’re also watching for a short squeeze that may push the stock far higher. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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