AeroVironment (NASDAQ:AVAV) Trading 1.3% Higher – Still a Buy?

AeroVironment, Inc. (NASDAQ:AVAV)’s stock price rose 1.3% during mid-day trading on Thursday . The company traded as high as $151.95 and last traded at $147.21. 2,367,773 shares changed hands during mid-day trading, an increase of 48% from the average session volume of 1,600,043 shares. The stock had previously closed at $145.39.

Key Stories Impacting AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Historic $464.8 million Army contract: AeroVironment will deliver dozens of LOCUST X3 high-energy laser systems over the next several years under the Army’s Enduring-High Energy Laser program. The award is described as the first U.S. production contract for directed-energy systems, validating AeroVironment’s laser-defense technology and potentially adding a scalable growth platform. AV’s LOCUST Selected for Nearly $500 million Army Counter-UAS Contract
• Positive Sentiment: Counter-UAS opportunity expands: The 30-kilowatt, platform-agnostic LOCUST X3 is designed to defend against small drones and complements AeroVironment’s existing unmanned systems and loitering-munitions portfolio. The contract strengthens visibility for a company that reportedly has an approximately $1.2 billion backlog. AeroVironment’s $465 Million Army Laser Win Expands Its Counter-Drone Opportunity
• Positive Sentiment: Analyst support remains favorable: BTIG maintained a Buy rating and a $205 price target following the award, suggesting the contract reinforces confidence in AeroVironment’s long-term growth potential. AeroVironment’s New $465M LOCUST Laser Contract Reinforces Buy Rating
• Neutral Sentiment: Upcoming earnings could add volatility: AeroVironment is scheduled to report fiscal first-quarter results on September 9. Investors will be watching revenue, profitability, execution and whether management provides additional details on the timing and economics of the laser program. AeroVironment Earnings Date
• Negative Sentiment: Valuation and profitability remain risks: AeroVironment has reported trailing losses and faces the challenge of converting the contract win into profitable production. Its elevated forward valuation leaves limited room for disappointing results, while some market commentators remain cautious about the stock’s upside and competitive pressures. Commentary on AeroVironment’s Upside

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the company. Weiss Ratings restated a “sell (d)” rating on shares of AeroVironment in a research report on Monday, June 8th. UBS Group reiterated a “buy” rating on shares of AeroVironment in a research report on Thursday, July 9th. BTIG Research reissued a “buy” rating and issued a $205.00 price objective on shares of AeroVironment in a research note on Thursday, July 9th. William Blair restated an “outperform” rating on shares of AeroVironment in a report on Wednesday, July 15th. Finally, KeyCorp restated an “overweight” rating on shares of AeroVironment in a report on Tuesday, July 28th. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, AeroVironment has an average rating of “Moderate Buy” and a consensus price target of $266.68.

AeroVironment Price Performance

The stock’s 50-day moving average price is $159.67 and its 200-day moving average price is $183.86. The company has a market capitalization of $7.48 billion, a price-to-earnings ratio of -40.00, a price-to-earnings-growth ratio of 4.92 and a beta of 1.41. The company has a quick ratio of 3.59, a current ratio of 4.30 and a debt-to-equity ratio of 0.17.

AeroVironment (NASDAQ:AVAV) last released its quarterly earnings results on Monday, June 29th. The aerospace company reported $1.84 EPS for the quarter, beating the consensus estimate of $1.47 by $0.37. The business had revenue of $641.62 million for the quarter, compared to analysts’ expectations of $555.97 million. AeroVironment had a negative net margin of 9.00% and a positive return on equity of 3.71%. AeroVironment’s revenue was up 133.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.61 earnings per share. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. Equities research analysts anticipate that AeroVironment, Inc. will post 3.25 earnings per share for the current year.

Insider Buying and Selling at AeroVironment

In other news, CAO Brian Shackley sold 205 shares of AeroVironment stock in a transaction on Friday, August 14th. The stock was sold at an average price of $201.86, for a total value of $41,381.30. Following the completion of the sale, the chief accounting officer directly owned 7,888 shares of the company’s stock, valued at approximately $1,592,271.68. This trade represents a 2.53% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen F. Page sold 250 shares of the business’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $174.41, for a total value of $43,602.50. Following the sale, the director owned 49,001 shares of the company’s stock, valued at approximately $8,546,264.41. The trade was a 0.51% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 705 shares of company stock worth $132,979. Company insiders own 0.79% of the company’s stock.

Hedge Funds Weigh In On AeroVironment

Several hedge funds have recently added to or reduced their stakes in the company. NewEdge Wealth LLC raised its holdings in AeroVironment by 1.1% during 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 last quarter. J.W. Cole Advisors Inc. lifted its position in AeroVironment by 3.7% during the 4th quarter. J.W. Cole Advisors Inc. now owns 1,081 shares of the aerospace company’s stock valued at $261,000 after purchasing an additional 39 shares during the period. Parkside Financial Bank & Trust grew its position in shares of AeroVironment by 29.7% during the 4th quarter. Parkside Financial Bank & Trust now owns 188 shares of the aerospace company’s stock worth $45,000 after buying an additional 43 shares during the period. Family Legacy Inc. grew its holdings in AeroVironment by 2.2% during the 4th quarter. Family Legacy Inc. now owns 2,326 shares of the aerospace company’s stock worth $563,000 after acquiring an additional 51 shares during the period. Finally, Vanguard Personalized Indexing Management LLC increased its holdings in AeroVironment by 2.3% in the fourth quarter. Vanguard Personalized Indexing Management LLC now owns 2,667 shares of the aerospace company’s stock valued at $645,000 after purchasing an additional 60 shares during the last quarter. Institutional investors own 86.38% of the company’s stock.

About AeroVironment

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.