Shares of AeroVironment (AVAV.US) surged nearly 10% in early trading on Thursday, extending a three-day rally that has seen the stock climb approximately 35%. The stock is currently trading at $188.42.
The significant price movement follows news that the company has secured a major defense contract. The U.S. Department of Defense announced in a statement on Wednesday evening that AeroVironment has been awarded a contract valued at $500 million. This contract is for the procurement of commercial counter-unmanned aircraft systems and counter-small unmanned aircraft system capabilities for the U.S. Army.
According to the official statement, the work related to this project is scheduled for completion by June 29, 2029.