AeroVironment s fell after the defense contractor said it plans to offer $750 million in common stock and $600 million in convertible senior notes.
The drone maker said it would use the funding to pay off debt and use leftover ceeds for general purposes such as boosting manufacturing capacity.
AeroVironment s have soared 85% this year, ballooning its market value to $13 billion. In this articleAVAV your favorite stocksCREATE FREE ACCOUNTAn image of a Quantix drone made by AeroVironment.
David Mcnew | Getty Images News | Getty ImagesAeroVironment s fell 8% Tuesday after the defense contractor said it plans to offer $750 million in common stock and $600 million in convertible senior notes due in 2030 to repay debt.
The drone maker said it would use leftover funding for general purposes such as boosting manufacturing capacity. AeroVironment s have soared 85% this year, ballooning its market value to $13 billion.
Last week, s of the Arlington, Virginia-based company rallied on strong fourth-quarter results, lifting higher as CNBC's Jim Cramer called it the "next Palantir of hardware.
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Stock hits recordLast month, the company also closed its $4. 1 billion acquisition of space-related defense company Blue Halo.
Earlier this month, President Donald Trump signed an executive order int to boost drone duction in the U. And crack down on unauthorized uses.
The company also has a high short interest level, which may have contributed to some of the recent gains, creating a short squeeze.
This phenomenon occurs when a stock price surges, forcing those shorting the stock to purchase s to cover their positions and prevent losses.
Stock Chart IconStock chart iconAerovironment 1 month stock chartWATCH: AeroVironment CEO on European defense spending boost, U.
Defense spending and Trumpwatch now4:3904:39AeroVironment CEO on European defense spending boost, U. Defense spending and TrumpClosing Bell: Overtime.