Why Draganfly (DPRO) Stock Is Volatile Today

Draganfly Inc. DPRO shares are trading lower by 9.9% to $0.13 during Tuesday’s session after the company announced a $2 million direct offering of 16.6 million units priced at $0.12 per share.

Each unit includes one common share (or a pre-funded warrant) and one warrant to purchase an additional share at $0.15. The warrants are immediately exercisable and expire in five years.

Maxim Group LLC is the sole placement agent. The funds will be used for general corporate purposes, including product development, marketing, and potential acquisitions. The offering is expected to close by August 21, pending regulatory approvals.

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Should I Sell My DPRO Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of Draganfly have lost 82.54% year to date. This compares to the average annual return of -62.21%, meaning the stock has underperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

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DPRO has a 52-week high of $1.04 and a 52-week low of $0.09.