DRO -31.4%: Fell the most in five years after CEO Oleg Vornik sold $49.5 million worth of shares, his entire holding in the Australian defence company.
Vornik sold 14.8 million shares between Nov. 6 and Nov. 12 after performance rights vested. We also had Chairman Peter James and non-executive director Jethro Marks also offload shares amounting to $12.4 million and $4.9 million, respectively.
No wonder the stocks was whacked – shareholders listen to senior management espouse the great future of the business, to then them flog their shares in big quantities at the first available opportunity.
DroneShield had faced plenty of skepticism around its valuation, and the push back from management was all about the scale of the opportunity ahead – this news clearly undermines that rhetoric.
Adding to the saga, earlier in the week DRO was forced to withdraw a statement disclosing that it had secured a package of contracts worth $7.6 million, later saying that these represented previously issued orders mistakenly marked as new. The stock pared most of its 10% gain after notifying investors of the mix-up at the time.
- This felt like amateur hour at the time, it looks potentially worse now.
MM is neutral towards DRO
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