AeroVironment (NASDAQ:AVAV) Shares Down 5.4% – What’s Next?

AeroVironment, Inc. (NASDAQ:AVAV) fell 5.4% during mid-day trading on Wednesday . The company traded as low as $139.77 and last traded at $140.80. 4,430,739 shares traded hands during mid-day trading, an increase of 175% from the average daily volume of 1,613,943 shares. The stock had previously closed at $148.78.

Trending Headlines about AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: AeroVironment reported record first-quarter revenue of $480.5 million, up 6% year over year, while adjusted EPS of $0.59 substantially exceeded analyst expectations. Funded backlog rose 37% to a record $1.5 billion, and the 1.4 book-to-bill ratio indicated solid order momentum. AeroVironment Announces Fiscal 2027 First Quarter Results
• Positive Sentiment: The company received its first international LOCUST directed-energy counter-drone order, valued at more than $50 million. Management believes the laser-weapons business could become a major franchise, expanding AeroVironment’s addressable market beyond traditional drones. AV Secures First International Order for LOCUST Directed Energy Counter-Drone Systems
• Positive Sentiment: Several analysts remain bullish: JPMorgan raised its target to $210, while Needham and BTIG reaffirmed Buy ratings with targets of $225 and $205, respectively.
• Neutral Sentiment: AeroVironment maintained fiscal 2027 guidance, calling for revenue of approximately $2.1 billion to $2.2 billion and EPS of $3.02 to $3.34. However, the revenue midpoint is slightly below consensus, tempering the earnings beat.
• Negative Sentiment: Bank of America kept a Buy rating but reduced its price target from $225 to $185, citing weaker near-term fundamentals and execution risks. Investors are also concerned that revenue growth is slowing, profitability remains limited, and the stock’s valuation is demanding.
• Negative Sentiment: Recent reports highlight insider selling and substantial institutional position reductions, adding to sentiment concerns. The stock’s decline from its prior high also reflects skepticism about whether backlog and new laser contracts can translate into sustained earnings growth.

Analyst Ratings Changes

A number of research analysts recently weighed in on AVAV shares. KeyCorp restated an “overweight” rating on shares of AeroVironment in a research note on Tuesday, July 28th. Stifel Nicolaus decreased their price target on AeroVironment from $315.00 to $220.00 and set a “buy” rating on the stock in a report on Tuesday, June 30th. Needham & Company LLC restated a “buy” rating and issued a $225.00 price objective on shares of AeroVironment in a research report on Thursday. Weiss Ratings reaffirmed a “sell (d)” rating on shares of AeroVironment in a research note on Friday, September 4th. Finally, JPMorgan Chase & Co. increased their target price on AeroVironment from $200.00 to $210.00 and gave the stock an “overweight” rating in a research report on Thursday. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $247.79.

AeroVironment Stock Down 0.4%

The company has a quick ratio of 3.59, a current ratio of 4.30 and a debt-to-equity ratio of 0.17. The company has a market capitalization of $7.45 billion, a PE ratio of -62.14, a PEG ratio of 4.87 and a beta of 1.41. The company’s 50 day moving average is $158.30 and its two-hundred day moving average is $179.00.

AeroVironment (NASDAQ:AVAV) last announced its earnings results on Wednesday, September 9th. The aerospace company reported $0.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.22 by $0.37. AeroVironment had a negative net margin of 5.77% and a positive return on equity of 4.06%. The firm had revenue of $480.49 million for the quarter, compared to analysts’ expectations of $451.95 million. During the same period in the prior year, the company earned $0.32 EPS. The business’s revenue was up 5.7% compared to the same quarter last year. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. On average, analysts anticipate that AeroVironment, Inc. will post 3.2 earnings per share for the current year.

Insider Buying and Selling at AeroVironment

In related news, Director Stephen Page sold 250 shares of the firm’s stock in a transaction on Monday, August 17th. The stock was sold at an average price of $191.98, for a total value of $47,995.00. Following the completion of the sale, the director directly owned 48,503 shares in the company, valued at $9,311,605.94. This trade represents a 0.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 transaction of $41,381.30. Following the transaction, the chief accounting officer directly owned 7,888 shares of the company’s stock, valued at $1,592,271.68. The trade was a 2.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 705 shares of company stock worth $132,979 in the last 90 days. 0.79% of the stock is currently owned by insiders.

Institutional Investors Weigh In On AeroVironment

A number of institutional investors and hedge funds have recently bought and sold shares of the company. California State Teachers Retirement System raised its holdings in shares of AeroVironment by 16,307.2% in the 2nd quarter. California State Teachers Retirement System now owns 6,215,051 shares of the aerospace company’s stock valued at $1,025,918,000 after purchasing an additional 6,177,171 shares in the last quarter. BlackRock Inc. bought a new position in shares of AeroVironment during the second quarter valued at approximately $574,566,000. American Capital Management Inc. bought a new position in shares of AeroVironment during the second quarter valued at approximately $69,745,000. Bank of America Corp DE purchased a new position in AeroVironment during the second quarter valued at approximately $67,549,000. Finally, Norges Bank bought a new position in AeroVironment in the fourth quarter worth approximately $94,655,000. 86.38% of the stock is owned by institutional investors.

AeroVironment Company Profile

AeroVironment, Inc is a defense technology company that develops and produces unmanned aircraft systems, loitering munitions, counter-unmanned aircraft systems and related robotic technologies. Its products are designed for intelligence, surveillance and reconnaissance, precision strike, force protection and tactical communications applications.

The company’s portfolio includes the Raven, Puma and Wasp small unmanned aircraft systems; the JUMP 20 vertical takeoff and landing aircraft; and the Switchblade family of loitering munitions.