Why Voyager Technologies Stock Zoomed 8% Higher on Wednesday
Key Points
The space and defense company was awarded a contract by a research arm of the U.S. Air Force.
This arrangement is worth $21 million.
Voyager Technologies (NYSE: VOYG) took its investors on the kind of voyage they enjoy on Wednesday. The space and defense company's stock took off that day, closing the trading session more than 8% higher in price. This was almost entirely due to a new contract from an arm of the U.S. military.
Business in the air
Voyager announced that morning that it had been contracted by the Air Force Research Laboratory to develop state-of-the-art intelligence, surveillance, and reconnaissance (ISR) systems enhanced by artificial intelligence (AI). The contract is worth $21 million.
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Image source: Getty Images.
The work will see Voyager focus on developing signal processing capabilities for multi-domain operations. The company said it will also deliver situational awareness tools that draw information from multiple sources to present a single picture to users.
In the press release touting the arrangement, the company wrote that it cements "Voyager's position at the forefront of defense innovation, developing airborne ISR technologies that scale seamlessly from tactical small Unmanned Aircraft Systems to high-altitude platforms while ensuring future-ready adaptability."
A difference maker
Voyager's booked under $40 million in net sales in its last-reported quarter, so this latest award is hardly a drop in the bucket. It's heartening to see the company secure a major win with a client that is essentially guaranteed to pay for the work without issues. I believe investors were justified in cheering the news and subsequently buying shares of the company.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.