Velodyne Lidar (NASDAQ:VLDR) stock is rising after the company announced a new partnership on Thursday morning.
Velodyne is a company that specializes in the manufacturing of LiDAR sensors. LiDAR, or light detection and ranging sensors, process data by projecting a series of lasers. The lasers reflect light off of surfaces, and the sensors creates a 3D scan of their surroundings using the information.
The good news for Velodyne today comes from its announced partnership with AGM Systems. AGM is a tech company based in Russia whose expertise lies in surveying.
The company will be utilizing one of Velodyne’s LiDAR sensors in its new generation of unmanned aerial vehicles (UAVs), a method for terrain mapping which has grown in popularity in recent years. AGM markets its UAVs to groups ranging from universities to construction firms.
This news is great for Velodyne as it looks to turn around a pretty up-and-down fiscal year. The company had only signed three contracts through 2020, but the beginning of this year has signaled a sea change for Velodyne as it has inked a whopping 26 new contracts since January.
Moreover, the company is looking like it will be a great play for the autonomous driving market. The lowering of its prices has made it an attractive option for LiDAR sensors, and many of those contracts it has secured have been with driverless vehicle manufacturers. Namely, companies like Baidu (NASDAQ:BIDU) have been working out dealings with Velodyne.
The Bottom Line for VLDR Stock
InvestorPlace contributors have made clear the case for VLDR stock in the past. The company has been struggling through the last year in terms of contracts and earnings. However, one should not be dissuaded from the stock entirely.
The AGM partnership could be a big deal for Velodyne. The company is turning the difficult 2020 into a (so far) quite prosperous 2021. The dealings it has done show its promise across multiple different sectors too, whether it be driverless cars or UAVs.
VLDR stock has gained 15% so far today.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.