AeroVironment (NASDAQ:AVAV) Stock Price Down 9.1% – Time to Sell?

AeroVironment, Inc. (NASDAQ:AVAV) shares fell 9.1% during mid-day trading on Wednesday . The company traded as low as $141.68 and last traded at $142.12. Approximately 1,278,037 shares changed hands during mid-day trading, a decline of 23% from the average daily volume of 1,666,593 shares. The stock had previously closed at $156.35.

More AeroVironment News

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Strategic AI collaboration: AeroVironment and Applied Intuition agreed to integrate Applied Intuition’s Acuity ISR/Strike software into AV’s Mayhem™ 10 launched-effects system. The partnership is intended to improve uncrewed teaming for the U.S. military and its allies, potentially strengthening AVAV’s technology position and future defense prospects. AV and Applied Intuition Establish Strategic Collaboration to Advance Uncrewed Teaming
• Positive Sentiment: Analyst support remains intact: Clear Street reaffirmed its Buy rating on AeroVironment, providing a positive signal despite the recent pullback and heightened volatility. The report did not indicate a change to the firm’s investment stance. Clear Street Keeps Their Buy Rating on AeroVironment
• Positive Sentiment: Recent Army contract adds support: A previously reported $117.3 million U.S. Army contract for P550 eVTOL drones provides potential revenue visibility and reinforces demand for AV’s unmanned systems. Is AeroVironment Cheap After Its Army Contract And Legal Headlines?
• Neutral Sentiment: Board transition planned: Director Stephen F. Page plans to retire from AeroVironment’s board, with succession planning underway. The announcement appears orderly and contains no indication of an immediate operational change. AeroVironment Announces Planned Retirement of Stephen F. Page from Board of Directors
• Negative Sentiment: Production concerns weigh on sentiment: A report that the Pentagon’s drone expansion is facing a significant U.S. production gap raises questions about the industry’s ability to scale quickly and could temper expectations for near-term contract execution.
• Negative Sentiment: Legal and valuation risks remain: Recent securities class-action notices add uncertainty, while valuation measures remain mixed and the stock is well below its 52-week high. These factors may be offsetting optimism from contracts and new technology partnerships.

Analysts Set New Price Targets

A number of research firms have commented on AVAV. KeyCorp reiterated an “overweight” rating on shares of AeroVironment in a research report on Tuesday. Weiss Ratings reaffirmed a “sell (d)” rating on shares of AeroVironment in a research report on Monday, June 8th. Royal Bank Of Canada downgraded AeroVironment from an “outperform” rating to a “sector perform” rating and decreased their price target for the stock from $210.00 to $180.00 in a report on Thursday, July 9th. Citigroup reissued a “market outperform” rating on shares of AeroVironment in a research note on Tuesday. Finally, Jefferies Financial Group cut their target price on AeroVironment from $305.00 to $229.00 and set a “buy” rating on the stock in a research report on Wednesday, July 1st. Two research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $266.68.

AeroVironment Stock Performance

The company has a debt-to-equity ratio of 0.17, a current ratio of 4.30 and a quick ratio of 3.59. The company has a fifty day moving average price of $166.56 and a 200 day moving average price of $210.57. The stock has a market cap of $7.19 billion, a P/E ratio of -38.62, a P/E/G ratio of 5.25 and a beta of 1.39.

AeroVironment (NASDAQ:AVAV) last released its quarterly earnings data on Monday, June 29th. The aerospace company reported $1.84 earnings per share for the quarter, beating analysts’ consensus estimates of $1.47 by $0.37. AeroVironment had a negative net margin of 9.00% and a positive return on equity of 3.71%. The firm had revenue of $641.62 million for the quarter, compared to analyst estimates of $555.97 million. During the same period last year, the firm earned $1.61 earnings per share. The business’s quarterly revenue was up 133.3% compared to the same quarter last year. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. On average, equities analysts expect that AeroVironment, Inc. will post 3.26 EPS for the current year.

Insider Buying and Selling

In other AeroVironment news, Director Stephen F. Page sold 250 shares of the firm’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $174.41, for a total transaction of $43,602.50. Following the transaction, the director directly owned 49,001 shares in the company, valued at approximately $8,546,264.41. This trade represents a 0.51% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.81% of the company’s stock.

Hedge Funds Weigh In On AeroVironment

Several hedge funds have recently modified their holdings of AVAV. Legacy Bridge LLC increased its stake in AeroVironment by 1.0% in the 4th quarter. Legacy Bridge LLC now owns 4,046 shares of the aerospace company’s stock worth $979,000 after purchasing an additional 39 shares during the period. NewEdge Wealth LLC lifted its position in shares of AeroVironment by 1.1% in the 4th quarter. NewEdge Wealth LLC now owns 3,709 shares of the aerospace company’s stock worth $897,000 after purchasing an additional 39 shares during the period. J.W. Cole Advisors Inc. lifted its holdings in AeroVironment by 3.7% in the fourth quarter. J.W. Cole Advisors Inc. now owns 1,081 shares of the aerospace company’s stock worth $261,000 after buying an additional 39 shares during the period. Parkside Financial Bank & Trust boosted its position in shares of AeroVironment by 29.7% during the fourth quarter. Parkside Financial Bank & Trust now owns 188 shares of the aerospace company’s stock valued at $45,000 after purchasing an additional 43 shares in the last quarter. Finally, Signaturefd LLC boosted its holdings in shares of AeroVironment by 10.5% during the 4th quarter. Signaturefd LLC now owns 495 shares of the aerospace company’s stock valued at $120,000 after buying an additional 47 shares in the last quarter. Institutional investors own 86.38% of the company’s stock.

AeroVironment Company Profile

AeroVironment, Inc (NASDAQ:AVAV) is a technology company specializing in unmanned aerial systems (UAS), tactical missiles and precision loitering munitions, electric vehicle charging and scalable energy systems. Headquartered in Monrovia, California, the company develops solutions for defense, public safety and commercial markets. Their offerings include small UAS for intelligence, surveillance and reconnaissance, as well as advanced weapons systems designed to meet the needs of modern military operations.

The company’s unmanned aerial systems portfolio features platforms such as the Raven, Puma and Switchblade series, which are deployed by the U.S.