AeroVironment (NASDAQ:AVAV) Downgraded by Zacks Research to “Strong Sell”

Zacks Research cut shares of AeroVironment (NASDAQ:AVAV) from a hold rating to a strong sell rating in a research note published on Wednesday morning,Zacks.com reports.

AVAV has been the topic of several other research reports. UBS Group began coverage on AeroVironment in a research note on Wednesday, February 18th. They issued a “neutral” rating and a $259.00 price objective on the stock. Piper Sandler reduced their target price on shares of AeroVironment from $391.00 to $290.00 and set an “overweight” rating for the company in a report on Tuesday. The Goldman Sachs Group lowered their price target on shares of AeroVironment from $486.00 to $429.00 and set a “buy” rating on the stock in a report on Friday, December 12th. Robert W. Baird dropped their price target on shares of AeroVironment from $350.00 to $260.00 and set an “outperform” rating for the company in a research report on Tuesday. Finally, Canaccord Genuity Group decreased their price objective on shares of AeroVironment from $400.00 to $330.00 and set a “buy” rating on the stock in a research report on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, one has issued a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $348.33.

AeroVironment Stock Performance

NASDAQ AVAV traded up $1.45 during trading hours on Wednesday, hitting $222.01. 313,964 shares of the company’s stock traded hands, compared to its average volume of 1,860,935. AeroVironment has a 52 week low of $102.25 and a 52 week high of $417.86. The firm has a market capitalization of $11.08 billion, a P/E ratio of -177.61, a P/E/G ratio of 3.58 and a beta of 1.26. The company has a current ratio of 5.08, a quick ratio of 4.29 and a debt-to-equity ratio of 0.16. The business’s fifty day moving average price is $284.65 and its two-hundred day moving average price is $292.75.

AeroVironment (NASDAQ:AVAV) last issued its quarterly earnings results on Tuesday, December 9th. The aerospace company reported $0.44 earnings per share for the quarter, missing the consensus estimate of $0.87 by ($0.43). AeroVironment had a positive return on equity of 3.42% and a negative net margin of 5.08%.The business had revenue of $472.51 million for the quarter, compared to analysts’ expectations of $466.16 million. During the same quarter in the prior year, the business earned $0.47 EPS. The company’s revenue was up 150.7% compared to the same quarter last year. AeroVironment has set its FY 2026 guidance at 3.400-3.550 EPS. Equities research analysts predict that AeroVironment will post 3.38 EPS for the current year.

Insider Transactions at AeroVironment

In other AeroVironment news, CAO Brian Charles Shackley sold 200 shares of the business’s stock in a transaction on Tuesday, December 30th. The shares were sold at an average price of $250.92, for a total value of $50,184.00. Following the sale, the chief accounting officer owned 5,994 shares in the company, valued at $1,504,014.48. The trade was a 3.23% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Stephen F. Page sold 1,000 shares of the stock in a transaction dated Thursday, January 15th. The shares were sold at an average price of $377.62, for a total transaction of $377,620.00. Following the transaction, the director directly owned 51,001 shares of the company’s stock, valued at $19,258,997.62. This trade represents a 1.92% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 4,589 shares of company stock valued at $1,428,910. 0.81% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On AeroVironment

Hedge funds have recently made changes to their positions in the company. N.E.W. Advisory Services LLC grew its holdings in AeroVironment by 60.0% during the 3rd quarter. N.E.W. Advisory Services LLC now owns 80 shares of the aerospace company’s stock valued at $25,000 after buying an additional 30 shares in the last quarter. TD Waterhouse Canada Inc. boosted its position in shares of AeroVironment by 100.0% during the 3rd quarter. TD Waterhouse Canada Inc. now owns 80 shares of the aerospace company’s stock valued at $28,000 after acquiring an additional 40 shares during the last quarter. AlphaQuest LLC purchased a new position in shares of AeroVironment in the third quarter valued at $25,000. Vermillion Wealth Management Inc. purchased a new position in shares of AeroVironment in the third quarter valued at $31,000. Finally, Steigerwald Gordon & Koch Inc. bought a new stake in AeroVironment in the third quarter worth $31,000. 86.38% of the stock is currently owned by hedge funds and other institutional investors.

AeroVironment News Summary

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Won a $97.4 million U.S. Army contract and is expanding New Mexico operations — a near-term revenue and capacity boost that supports production scale-up ahead of upcoming earnings. AeroVironment Bags $97.4M Army Contract
• Positive Sentiment: Sector tailwinds and company-level demand for unmanned systems remain strong — coverage pieces highlight AVAV’s revenue growth (>150% y/y last quarter) and planned manufacturing expansion, which underpin longer-term growth expectations. The New War Portfolio: 3 Stocks Built for a High-Tech War
• Neutral Sentiment: Management will present at the J.P. Morgan Industrials Conference (March 18), providing an opportunity for management clarity and investor Q&A ahead of earnings — could reduce uncertainty if the presentation is constructive. AeroVironment to Present at J.P. Morgan 2026 Industrials Conference
• Neutral Sentiment: Canaccord trimmed its price target (from $400 to $330) but kept a Buy rating — signal of confidence in the long-term story but concern about near-term program risk (mixed implication for the stock). Canaccord Slashes AeroVironment Target From $400 to $330 but Holds Buy
• Neutral Sentiment: Company adopted a new executive deferred-compensation plan — routine governance/compensation update with limited direct impact on operations. AeroVironment Adopts New Executive Deferred Compensation Plan
• Neutral Sentiment: Reported short-interest figures in the feed are inconsistent/zeroed out and don’t provide a reliable signal currently — treat short-interest commentary with caution until confirmed data is published.
• Negative Sentiment: Zacks downgraded AVAV from “Hold” to “Strong Sell” — a notable research house downgrade that can trigger selling pressure and influence other momentum-driven funds. Zacks Downgrades AeroVironment
• Negative Sentiment: Pomerantz has opened an investor investigation into AVAV — potential litigation risk increases uncertainty and can weigh on sentiment until resolved. Pomerantz Investigates Claims on Behalf of Investors of AeroVironment
• Negative Sentiment: Multiple sell-side shops trimmed outlooks and targets (Royal Bank of Canada cut its target to $325; Robert W. Baird and Piper Sandler flagged lower expectations) — analyst downgrades and target cuts add to near-term selling pressure. RBC Lowers AeroVironment Price Target Robert W. Baird Lowers Expectations Piper Sandler Pessimistic Forecast

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.