DroneShield Limited (ASX:DRO), once a standout performer on the Australian Securities Exchange (ASX), has become a cautionary tale of how governance issues can derail even the most promising momentum stocks. As of 2 December 2025, the counter-drone specialist’s share price hovers just under A$2, specifically around A$1.96–A$1.97, after closing at A$1.965 on 1 December. This price represents more than a twofold increase from its 52-week low of approximately A$0.585, but it is still roughly 70–75% below its early-October peak near A$6.70. Despite a brutal November crash, the stock remains up over 150% in 2025, with analysts’ 12-month targets suggesting potential upside of more than 150% from current levels. However, governance controversies, insider selling, and extreme volatility now dominate the narrative.
Multiple real-time data providers confirm DroneShield’s share price just under A$2. StockInvest.us shows a 1 December close of A$1.97, down 0.76% on the day, with a 52-week range of A$0.585 to A$6.71 and a market capitalisation of about A$1.72 billion. Intelligentinvestor’s historical table also records a 1 December close at A$1.965 after an intraday range of A$1.945–A$2.07. Investing.com quotes a current price around A$1.965 and a market cap in the A$1.6–1.7 billion range. Volatility remains extreme, with StockInvest calculating average daily moves around 10%, and the last session swinging over 6% intraday, with the stock down approximately 24% over the past 10 trading days.
The Motley Fool lists DroneShield as one of the five most traded Australian shares last week, noting that the company and Pilbara Minerals topped the list, with about 66% of DroneShield trades being on the buy side following the share price collapse.
The backstory is crucial, as almost all current research and commentary on 2 December 2025 is framed around the last eight weeks. In early October, DroneShield’s share price surged to around A$6.70, up roughly 800% year-to-date, as investors latched onto its role in the booming counter-drone and electronic warfare market. A feature in the Financial Times described the company’s journey from a mosquito-zapping concept to “Australia’s most valuable listed defence company,” highlighting record Q3 2025 revenue of A$92.9 million, up from A$7.8 million a year earlier, driven by global demand for its AI-enabled “drone gun” jammers and detection systems.
The rally began to unravel in November. Between 6–12 November, the CEO, chairman, and another director collectively sold around A$70 million of stock as long-dated performance options vested and were exercised. On 10 November, DroneShield released an ASX announcement claiming A$7.6 million in new US government contracts, only to withdraw it the same day, later admitting the contracts were not new orders but re-issued versions of existing deals following regulatory changes. The combination of large insider sales and the contract miscommunication shattered confidence, leading to a 31.4% single-session plunge on 13 November, the biggest fall on the S&P/ASX 200 that day. Economic Times coverage explicitly linked the drop to director share sales. By 21 November, DroneShield shares were down roughly 75% from their October peak, wiping out about A$4.3 billion in market value, with short interest jumping 62%.
Leadership turmoil and a new share issue further compounded the governance story. Around 19 November, the company announced the abrupt resignation of its US CEO, Matt McCrann, leading to a nearly 20% stock slump. Australian media and ABC Radio’s RN Breakfast programme highlighted investor anger at the timing and scale of the insider trades, prompting DroneShield’s board to commit to an independent review of its continuous disclosure and securities-trading policies. An ASX Appendix 2A filing on 28 November recorded a fresh issue of 3,136,127 fully paid ordinary shares, tied to performance options, further stoking concerns.
Despite the governance storm,