AeroVironment (NASDAQ:AVAV) Stock Price Up 8.3% – Here’s Why

AeroVironment, Inc. (NASDAQ:AVAV) shares shot up 8.3% during mid-day trading on Thursday . The stock traded as high as $371.40 and last traded at $344.96. 3,208,860 shares were traded during mid-day trading, an increase of 53% from the average session volume of 2,093,186 shares. The stock had previously closed at $318.48.

AeroVironment News Roundup

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Major U.S. Army drone award flow and contract wins are being cited as the primary catalyst lifting sentiment and volumes; media coverage highlights a cluster of Army awards that materially improve AVAV’s addressable backlog and growth outlook. AeroVironment (AVAV) Is Up 31.7% After Major U.S. Army Drone Awards Has The Bull Case Changed?
• Positive Sentiment: Piper Sandler reaffirmed its Buy rating on AVAV, supporting investor confidence and reinforcing the bullish narrative from sell‑side coverage. Piper Sandler Reaffirms Their Buy Rating on AeroVironment (AVAV)
• Positive Sentiment: Partner win: Parry Labs will integrate MOSA-aligned mission systems into AV’s P550 UAS for the Army’s Long Range Reconnaissance program, strengthening AVAV’s product competitiveness on key military programs. Parry Labs Advances Modular Mission Systems in AV’s P550™ for Army LRR Program
• Positive Sentiment: Recent Wall Street starts and upgrades (e.g., KeyBanc/other coverage) underline continued institutional interest in AVAV’s defense/leverage story. Where is AeroVironment (AVAV) Headed According to Wall Street?
• Neutral Sentiment: Market conversation on valuation: several commentaries ask whether the run (roughly +100% over 1 year) leaves AVAV overvalued, prompting some profit‑taking and debate about upside from here. Is It Too Late To Consider AeroVironment (AVAV) After A 111% One-Year Surge?
• Neutral Sentiment: Unusually large call-option activity was reported, indicating speculative or hedged bullish positioning that likely amplified intraday moves.
• Negative Sentiment: Analyst caution and downgrades: at least one note argued AVAV is “flying too high” and trimmed ratings/targets, which could cap near-term upside if revisions accelerate. AeroVironment: This Drone Stock Is Flying Too High (Rating Downgrade)
• Negative Sentiment: Legal/investor risk: Pomerantz launched an investor investigation into AVAV, adding regulatory/legal overhang that could pressure sentiment if it develops. INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Aerovironment, Inc. – AVAV
• Negative Sentiment: Fundamental caution: AVAV’s Dec. quarterly report missed EPS expectations (though revenue grew sharply) and the company trimmed prior guidance, a backdrop that some investors cite when judging sustainability of the rally.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on AVAV. The Goldman Sachs Group cut their price objective on shares of AeroVironment from $486.00 to $429.00 and set a “buy” rating for the company in a research note on Friday, December 12th. Weiss Ratings reissued a “sell (d+)” rating on shares of AeroVironment in a research note on Monday, December 29th. Zacks Research upgraded shares of AeroVironment from a “strong sell” rating to a “hold” rating in a research report on Tuesday, December 2nd. Royal Bank Of Canada reduced their price objective on AeroVironment from $440.00 to $400.00 and set an “outperform” rating on the stock in a research note on Monday, December 8th. Finally, BTIG Research reissued a “buy” rating and issued a $415.00 target price on shares of AeroVironment in a research note on Monday, November 24th. Two analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $375.41.

AeroVironment Trading Up 5.8%

The firm has a market cap of $18.22 billion, a PE ratio of -291.99, a PEG ratio of 5.09 and a beta of 1.16. The firm has a fifty day simple moving average of $282.00 and a two-hundred day simple moving average of $285.49. The company has a current ratio of 5.08, a quick ratio of 4.29 and a debt-to-equity ratio of 0.16.

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

Insider Transactions at AeroVironment

In related news, CFO Kevin Patrick Mcdonnell sold 513 shares of the stock in a transaction dated Monday, November 10th. The shares were sold at an average price of $331.46, for a total value of $170,038.98. Following the completion of the transaction, the chief financial officer directly owned 18,811 shares of the company’s stock, valued at $6,235,094.06. This represents a 2.65% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CAO Brian Charles Shackley sold 200 shares of the company’s stock in a transaction that occurred on Tuesday, December 30th. The stock was sold at an average price of $250.92, for a total value of $50,184.00. Following the transaction, the chief accounting officer owned 5,994 shares in the company, valued at $1,504,014.48. This trade represents a 3.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 1,224 shares of company stock valued at $347,651. 0.81% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of AVAV. N.E.W. Advisory Services LLC grew its stake in shares of AeroVironment by 60.0% in the third quarter. N.E.W. Advisory Services LLC now owns 80 shares of the aerospace company’s stock worth $25,000 after acquiring an additional 30 shares during the period. TD Waterhouse Canada Inc. grew its holdings in shares of AeroVironment by 100.0% in the third quarter. TD Waterhouse Canada Inc. now owns 80 shares of the aerospace company’s stock worth $28,000 after acquiring an additional 40 shares during the period. AlphaQuest LLC bought a new position in shares of AeroVironment in the 3rd quarter worth approximately $25,000. ORG Partners LLC increased its holdings in AeroVironment by 296.0% during the second quarter. ORG Partners LLC now owns 99 shares of the aerospace company’s stock valued at $27,000 after buying an additional 74 shares during the last quarter. Finally, RMG Wealth Management LLC bought a new stake in shares of AeroVironment during the 2nd quarter valued at $28,000. Hedge funds and other 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.