Bank of America Issues Pessimistic Forecast for AeroVironment (NASDAQ:AVAV) Stock Price

AeroVironment (NASDAQ:AVAV) had its target price cut by stock analysts at Bank of America from $225.00 to $185.00 in a research report issued to clients and investors on Friday, Benzinga reports. The firm currently has a “buy” rating on the aerospace company’s stock. Bank of America‘s target price points to a potential upside of 27.36% from the stock’s current price.

AVAV has been the topic of several other reports. Needham & Company LLC restated a “buy” rating and set a $225.00 target price on shares of AeroVironment in a report on Thursday. Citigroup reiterated a “market outperform” rating on shares of AeroVironment in a report on Thursday. Weiss Ratings reissued a “sell (d)” rating on shares of AeroVironment in a research report on Friday, September 4th. Royal Bank Of Canada lowered shares of AeroVironment from an “outperform” rating to a “sector perform” rating and dropped their price objective for the stock from $210.00 to $180.00 in a report on Thursday, July 9th. Finally, Jefferies Financial Group cut their price objective on shares of 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 assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $247.79.

AeroVironment Trading Down 1.2%

AeroVironment stock traded down $1.81 during mid-day trading on Friday, hitting $145.26. 734,255 shares of the company’s stock were exchanged, compared to its average volume of 1,655,794. AeroVironment has a fifty-two week low of $135.20 and a fifty-two week high of $417.86. 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 firm has a market capitalization of $7.38 billion, a P/E ratio of -62.01, a PEG ratio of 4.87 and a beta of 1.41. The company’s 50 day simple moving average is $158.30 and its 200-day simple moving average is $179.00.

AeroVironment (NASDAQ:AVAV) last announced its quarterly earnings results on Wednesday, September 9th. The aerospace company reported $0.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.22 by $0.37. AeroVironment had a positive return on equity of 4.06% and a negative net margin of 5.77%.The company had revenue of $480.49 million during the quarter, compared to the consensus estimate of $451.95 million. During the same period in the prior year, the company earned $0.32 earnings per share. The company’s revenue for the quarter 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, equities analysts anticipate that AeroVironment will post 3.2 earnings per share for the current year.

Insider Activity at AeroVironment

In other AeroVironment news, CAO Brian Shackley sold 205 shares of the company’s stock in a transaction that occurred 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 completion of the transaction, the chief accounting officer owned 7,888 shares of the company’s stock, valued at $1,592,271.68. This represents a 2.53% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen Page sold 250 shares of the company’s stock in a transaction that occurred 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 transaction, the director directly owned 48,503 shares of the company’s stock, valued at approximately $9,311,605.94. This trade represents 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. Insiders sold a total of 705 shares of company stock worth $132,979 in the last 90 days. Company insiders own 0.79% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in AVAV. NewEdge Wealth LLC grew its stake in AeroVironment by 1.1% in the 4th quarter. NewEdge Wealth LLC now owns 3,709 shares of the aerospace company’s stock valued at $897,000 after buying an additional 39 shares in the last quarter. J.W. Cole Advisors Inc. lifted its position in shares of AeroVironment by 3.7% during the fourth quarter. J.W. Cole Advisors Inc. now owns 1,081 shares of the aerospace company’s stock worth $261,000 after acquiring an additional 39 shares in the last quarter. Parkside Financial Bank & Trust boosted its holdings in shares of AeroVironment by 29.7% in the fourth quarter. Parkside Financial Bank & Trust now owns 188 shares of the aerospace company’s stock worth $45,000 after acquiring an additional 43 shares during the period. Vanguard Personalized Indexing Management LLC boosted its holdings in shares of AeroVironment by 2.3% in the fourth quarter. Vanguard Personalized Indexing Management LLC now owns 2,667 shares of the aerospace company’s stock worth $645,000 after acquiring an additional 60 shares during the period. Finally, Hazlett Burt & Watson Inc. grew its position in shares of AeroVironment by 90.0% in the fourth quarter. Hazlett Burt & Watson Inc. now owns 133 shares of the aerospace company’s stock valued at $32,000 after purchasing an additional 63 shares in the last quarter. Institutional investors and hedge funds own 86.38% of the company’s stock.

AeroVironment News Roundup

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Quarterly results exceeded expectations. Revenue reached a record $480.5 million, up 5.7% year over year and above the roughly $452 million consensus. Non-GAAP EPS of $0.59 substantially surpassed the $0.22 analyst estimate, while the prior-year quarter produced $0.32 per share. Why AeroVironment Stock Is Up Today
• Positive Sentiment: Backlog and bookings strengthened visibility. Funded backlog rose 37% year over year to a record $1.5 billion, bookings totaled approximately $700 million and the book-to-bill ratio was 1.4. Management said fiscal 2027 started strongly, supported by demand for drones, counter-drone systems and other defense technologies. AeroVironment Fiscal 2027 Results
• Positive Sentiment: LOCUST secured an important international foothold. AeroVironment received its first international commercial order for its LOCUST directed-energy counter-drone system, valued at more than $50 million. The contract supports the company’s strategy of building laser weapons into a major growth franchise. International LOCUST Order
• Positive Sentiment: Analyst support improved. JPMorgan raised its price target to $210 and maintained an Overweight rating, while Citizens JMP, Needham and BTIG reiterated bullish ratings with targets ranging from $205 to $230. Analyst Forecasts
• Neutral Sentiment: Guidance was maintained but remains a watchpoint. Fiscal 2027 revenue guidance of $2.1 billion to $2.2 billion has a midpoint slightly below analyst expectations, while EPS guidance of $3.02 to $3.34 brackets the consensus estimate of $3.21.
• Negative Sentiment: Some analysts cautioned that revenue growth is slowing, profitability remains pressured and execution must improve. AeroVironment reported a GAAP net loss, and its elevated valuation leaves the stock sensitive to any backlog-conversion or margin disappointment. AeroVironment Earnings Risks

About AeroVironment

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.