AEVEX shares fell to $20 after selling 8 million additional shares, diluting upside despite strong fundamentals and military contracts.
Jim Cramer reiterated his positive outlook on AEVEX Corp. (AVEX), citing its strong fundamental story and U.S. military contracts. The stock, previously recommended at $26, surged to $40 in late May before retreating to around $20 following an 8 million-share secondary offering.
AEVEX, which provides AI-driven drone and autonomous systems, sold 16 million shares in its IPO. The additional 8 million shares introduced significant supply, pressuring the stock despite a recently reported strong quarter. Cramer noted the pattern of secondary offerings limiting upside across similar stocks.
The company’s technology and defense contracts remain a key driver, though near-term share dilution has tempered momentum.