New Horizon Aircraft Ltd. (NASDAQ: HOVR) experienced a tumultuous trading day on Friday, with its stock plummeting nearly 8% during regular trading hours. However, the stock made an astonishing recovery in the afterhours session, surging by an incredible 78% within a few hours. This dramatic turnaround has captivated the market, particularly given the absence of any significant news to explain the sudden spike.
The trading volume was also notably high, with 1.6 million shares changing hands—over seventeen times the stock’s average volume. This unusual activity suggests a heightened level of market interest and speculation surrounding HOVR. Despite the concerns about a potential profit-taking dip in the coming days, bullish investors are currently riding the wave of optimism.
Horizon Background and Recent Developments
Horizon Aircraft, an innovative aerospace company founded in 2022, is developing one of the world’s first hybrid eVTOLs (electric Vertical Take-Off and Landing aircraft). The company’s flagship model, the Cavorite X7, aims to combine the operational utility of traditional aircraft with the benefits of advanced electric technology. Horizon prioritizes safety, performance, and utility in its design, hoping to complete testing and certification swiftly.
Last month, Horizon announced significant progress in its technological advancements. Brandon Robinson, Chairman and CEO, expressed confidence in the company’s direction, highlighting successful test results and technological validations. These included the validation of their patent-pending yaw control system, which enhances stability and control, particularly in strong crosswinds.
Technical Horizon Milestones
The company has commenced full-scale production of its propulsion units, marking a significant step towards building a full-scale prototype. Horizon’s large-scale prototype continues to achieve milestones in its rigorous flight-testing program under Transport Canada’s Special Flight Operations Certificate. The aircraft has demonstrated impressive stability and control, with transitional flight tests on track to be completed by mid-summer.
Robinson praised the team’s relentless pursuit of excellence, noting their significant strides in the transition flight testing program. The Cavorite X7 is expected to outperform all-electric competitors in speed and cargo capacity, utilizing a hybrid electric power system that recharges in-flight and post-landing.
Conclusion
Traders are keenly watching Horizon Aircraft’s stock as the company approaches a pivotal phase in its development. The unexpected afterhours surge has added a new layer of intrigue to HOVR’s market performance, with many anticipating further developments when the market reopens on Monday. As Horizon continues to push technological boundaries, the aerospace community remains attentive to its progress and potential impact on the Advanced Air Mobility market.
