Why AgEagle Stock Tanked 36% Today

AgEagle Aerial Systems Inc UAVS stock closed over 36% lower today.

What Happened: Short seller Bonitas Research called the drone maker a “pump & dump scheme” in a report published on Thursday.

Bonitas Research termed the partnership between Amazon.com, Inc AMZN and AgEagle, a “rumor.” 

The rumor was fueled by a promotional video uploaded to AgEagle’s founder and former chairman Bret Chilcott’s daughter’s personal website and YouTube account, as per the short seller.

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The report also referred to an Amazon spokesperson who in the fourth quarter of 2020 told Daniel McCoy, reporter of the Witchita Business Journal, that Amazon specifically does not have any dealings with AgEagle whatsoever.

Why It Matters: AgEagle stock spiked from $0.39 to $16 on the news of the Amazon partnership, said Bonitas Research.

At the same time, insider ownership fell from 44% to 0.5%, the short seller claimed.

“We are short UAVS and think that its stock is going lower,” wrote Bonitas Research. 

Price Action: AgEagle shares closed nearly 36.4% lower at $8.96 on Thursday and rose 1.56% to $9.10 in the after-hours session.