Yossi Cohen did not help: the drone company's stock continues to dive

The drone company Aerodrome is down by 3% following the announcement today (Tuesday) to the stock exchange regarding the resignation of CEO Ziv Ben Baruch, effective in two weeks. His position will be taken by Brigadier General Itzik Bilet, marking the third CEO replacement for the company in the last year.

The company's stock began the year as a standout performer on the exchange. It surged by over 2,000% within three months, reaching a market capitalization of over half a billion shekels. A significant portion of these gains was driven by the involvement of former Mossad chief Yossi Cohen as a controlling shareholder.

From an extreme surge to a rapid crash

The painful turn occurred after the Ministry of Defense announced in April a demand for compensation from Aerodrome due to the company's failure to meet the terms of a tender for drone supplies. Concurrently, financial reports were particularly disappointing, with revenues of only 3 million shekels compared to much higher expectations. Despite this, the stock remains in positive territory with a gain of over 300% since the beginning of the year.

Shortly after the incident, the then-CEO, Michel Ben Baruch, resigned. He was succeeded by the current CEO, Ziv Ben Baruch, who is now also being replaced. While this may be an attempt to signal a change in direction, it remains highly doubtful that this will restore the trust of disappointed investors. As noted, the company's stock is falling in response to the announcement.