RAVN Stock: Why Raven Industries Has Been Trending Higher

Slowly but surely, Raven Industries (NASDAQ:RAVN) has been trending higher. Over the last month, RAVN stock is up nearly 40%, and shares closed out Thursday in the green. But what about the agricultural technology company stands out now? And what else do investors need to know?

Tractor cultivating field

Source: Shutterstock

To start, what is Raven Industries? Well, the company has been around since 1953, and it has its hands in a variety of markets. Raven manufactures tech products for industrial, agricultural, construction and defense uses. Currently, its agriculture products are behind the recent move in RAVN stock.

So what are those products? Importantly, Raven Industries just launched preorders for its Driverless Ag Technology AutoCart. This autonomous grain cart solution will be available during the 2021 harvest season, and according to the company, bridges a big gap in agriculture. AutoCart is a driverless tractor setup — the tractor pulls the grain cart, synching with the combine. Additionally, the AutoCart helps farmers set field plans, stage locations, adjust speeds and monitor location activities.

As Raven Industries tells it, this is a huge milestone for the agriculture industry, as it represents a big step toward incorporating autonomous technology. Importantly, after acquiring Smart Ag in 2019, Raven has been working on a handful of driverless agriculture products. And in the press release for the AutoCart, it promises to deliver more in the near future.

So why should investors care about RAVN stock? One reason is that the AutoCart promises to help farmers get more out of their working hours. But there are likely other reasons investors have been chasing shares up in recent weeks…

Why RAVN Stock Is Climbing This Month

Just as Raven Industries has seen its share price climb slowly but surely, one popular exchange-traded fund has been building a stake in RAVN stock. As many individual investors have noted, the Ark Autonomous Technology & Robotics ETF (BATS:ARKQ) has taken a stake in RAVN.

As of yesterday, the fund held 395,217 shares, representing just 1% of its portfolio. However, it appears as if ARKQ has continued to gradually add to its position. Could RAVN stock soon represent more of the ETF?

Even beyond this sign of institutional support, many investors may be interested in RAVN stock because of the trends in agriculture technology.

According to industry experts, much agtech spending came to a halt at the start of the pandemic. Facing demand uncertainties and all sorts of setbacks, many farmers lost their budgets for new gadgets. But with so many on Wall Street betting for a return to normal in 2021, the AutoCart could regain its shine. Plus, as Raven preps to deliver its cart in time for the harvest, it may just benefit from a turnaround story.

Keep your eye on RAVN stock, and do your own research. With lots of autonomous vehicle plays gaining ground, self-driving products for agriculture could continue to captivate investor interest.

On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

Sarah Smith is a Web Content Producer with InvestorPlace.com.