Here's why the Ava Risk (ASX:AVA) share price is edging higher today

The Ava Risk Group (ASX: AVA) share price is edging higher after a multi-site rail contract award win. Here are the details.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Ava Risk Group Ltd (ASX: AVA) share price is edging higher today after the company announced that it has won a multi-site rail contract award.

At the time of writing, shares in the risk management services and technologies company are up 2.9% to 52.5 cents.

A row of padlocks on a chain, indicating a share price for an ASX security company

Image source: Getty Images

Ava Risk's latest contract

Investors are pushing the Ava Risk share price higher following the company's latest contract win.

In this morning's release, Ava Risk announced it has secured a $1.84 million deal to deploy its Aura Ai sensing solution to a number of major rail facilities in South America.

Aura Ai-2, developed by Future Fibre Technologies (FFT), is an advanced and versatile perimeter intrusion detection system. The product platform applies artificial intelligence to detect and locate intruders who climb, cut or lift perimeter fences.

The company's Aura Ai sensing product will be installed across a multi-site program to upgrade security systems. This will be completed by fully-integrating the package with the customer's existing video management software and CCTV system.

Ava Risk noted that its first purchase order has already been received, valued at $0.61 million. The initial rollout is scheduled for early Q4 FY21, with the remaining sites completed before the end of the quarter.

Word from the manager

Ava group CEO Rob Broomfield welcomed the deal, saying:

FFT Aura Ai-2 was the solution selected to protect the rail sites, due to our exceptional event classification capability, extended sensing distance, and cut resilience capability.

A further key factor in the contract win was FFT's previous success in protecting railway infrastructure and the company's strong reputation across the broader transportation sector.

Ava Risk share price summary

The Ava Risk share price has jumped to more than 400% over the past 12 months. However, its shares are down around 10% year-to-date.

Based on the current share price, Ava Risk has a market capitalisation of $123.2 million, with 241.6 million shares outstanding.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A man rests his chin in his hands, pondering what is the answer?
Opinions

Is that the end of the ASX share market crash?

The stock market looks like it has started to recover.

Read more »

Frustrated man at computer desk.
Share Market News

5 most traded ASX 200 shares since the war began

Only one of them is an energy stock.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Opinions

3 reasons to buy NAB shares today

Here's why I think the ASX bank stock is still a buy.

Read more »

Excited couple celebrating success while looking at smartphone.
Broker Notes

Up 222% in a year, why this ASX energy share is forecast to more than double your money again

A leading broker forecasts more outsized gains to come from this rocketing ASX energy share. But why?

Read more »

A man holds his head in his hands after seeing bad news on his laptop screen.
Broker Notes

3 massively popular ASX 200 shares experts say to sell (inc. CBA)

Let's see why they are bearish on these names this week.

Read more »

Two workers working with a large copper coil in a factory.
Broker Notes

Should you buy this $8 billion ASX 200 copper stock amid surging global demand?

A leading analyst drills into the outlook for this $8 billion ASX copper miner.

Read more »

Woman with an amazed expression has her hands and arms out with a laptop in front of her.
Share Gainers

Why BHP, EchoIQ, Life360, and Qantas shares are racing higher today

These shares are having a solid session on Tuesday. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why DroneShield, Guzman Y Gomez, IAG, and Myer shares are falling today

These shares are out of form on Tuesday. But why?

Read more »