Jim Cramer on AEVEX: “I Still Think the Fundamental Story Here is Terrific”

AEVEX Corp. (NYSE:AVEX) was among Jim Cramer’s stock calls on Mad Money, as he highlighted worthy space players and reviewed several of this year’s IPOs. Cramer highlighted his previous recommendation on the stock, as he remarked:

Fifth, on April 17th, I recommended a stock called AEVEX, which is a private equity-backed drone maker that has a big contract with the US military. While the drones are clearly the future of warfare, this stock’s been more of a rollercoaster. It was trading at $26 when I talked about it. Then it zoomed to $40 at its highs in late May. But unfortunately, AEVEX used that rally to sell another 8 million shares, which is a big chunk of stock given that they only sold 16 million shares in the IPO. Notice the theme of all these secondaries. People are just kind of bailing, right? Now, all of that new supply has pulled this one down to 20 bucks and change as of today. I still think the fundamental story here is terrific. AEVEX reported a great quarter last month, but the flood of new supply makes it harder for the stock to rally like crazy.

A stock market graph. Photo by energepic.com

AEVEX Corp. (NYSE:AVEX) manufactures autonomous systems, including modular uncrewed aircraft and surface vehicles, as well as AI-driven navigation technologies. In addition, the company provides specialized engineering services, including aircraft modification and airborne intelligence solutions for mission-specific needs.

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