AeroVironment (NASDAQ:AVAV) Stock Price Down 2.3% – Here’s Why

AeroVironment, Inc. (NASDAQ:AVAV) fell 2.3% during trading on Thursday . The stock traded as low as $308.53 and last traded at $312.12. 1,283,592 shares traded hands during mid-day trading, a decline of 37% from the average session volume of 2,041,058 shares. The stock had previously closed at $319.63.

Key Headlines Impacting AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Product/market development — AeroVironment launched a new mission specialist called “Wraith,” which could expand its product lineup and address new defense use cases if it wins contracts or follow‑on orders. AeroVironment (AVAV) launches mission specialist Wraith
• Neutral Sentiment: Market note — Coverage summary noting AVAV’s recent intraday decline and trading context; useful for short‑term price movement context but contains no new company‑specific catalyst. AeroVironment (AVAV) Stock Falls Amid Market Uptick: What Investors Need to Know
• Neutral Sentiment: Commentary repeat — an outlet republishing Jim Cramer commentary; restates market views but adds little new information beyond broader sentiment on valuation. Jim Cramer Considers AeroVironment “Incredibly Expensive at These Levels” (InsiderMonkey)
• Negative Sentiment: Contract/operational disruption — a stop‑work order was issued related to SCAR antennas, introducing execution risk, schedule delays and potential revenue/penalty exposure if unresolved. That type of operational hit tends to weigh on defense suppliers. Stop Work Order Issued To AeroVironment For SCAR Antennas
• Negative Sentiment: High‑profile negative commentary — Jim Cramer called AVAV “incredibly expensive,” a view that can amplify selling pressure when echoed across media and retail channels. Jim Cramer Considers AeroVironment “Incredibly Expensive at These Levels”
• Negative Sentiment: Contract uncertainty — reporting that a revised U.S. military contract prompted a share crash this week. Contract revisions can reduce near‑term revenue visibility and raise concerns about margins or delivery timing. Why Shares of AeroVironment Stock Crashed This Week
• Negative Sentiment: Investor litigation risk — Pomerantz law firm announced an investigation on behalf of AVAV investors, increasing legal and disclosure risk that can pressure shares. INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Aerovironment, Inc. – AVAV
• Negative Sentiment: Additional securities‑law probe — Kaplan Fox also alerted investors to an investigation into possible securities violations, compounding legal overhang. Kaplan Fox Alerts Investors of AeroVironment, Inc. (AVAV) to an Investigation of Possible Securities Law Violations

Analyst Ratings Changes

AVAV has been the topic of several research analyst reports. JMP Securities raised their target price on AeroVironment from $325.00 to $400.00 and gave the stock a “market outperform” rating in a research report on Friday, October 3rd. BTIG Research reaffirmed a “buy” rating and set a $415.00 price objective on shares of AeroVironment in a research report on Monday, November 24th. Cantor Fitzgerald cut their price target on shares of AeroVironment from $335.00 to $315.00 and set an “overweight” rating for the company in a report on Wednesday, December 10th. Weiss Ratings restated a “sell (d+)” rating on shares of AeroVironment in a research report on Monday, December 29th. Finally, Piper Sandler reissued an “overweight” rating on shares of AeroVironment in a report on Wednesday, December 10th. Two analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, AeroVironment presently has an average rating of “Moderate Buy” and a consensus target price of $375.41.

AeroVironment Price Performance

The firm has a market capitalization of $15.37 billion, a price-to-earnings ratio of -246.20, a price-to-earnings-growth ratio of 4.62 and a beta of 1.16. The company’s fifty day moving average price is $286.75 and its 200 day moving average price is $292.82. The company has a debt-to-equity ratio of 0.16, a quick ratio of 4.29 and a current ratio of 5.08.

AeroVironment (NASDAQ:AVAV) last issued its quarterly earnings data on Tuesday, December 9th. The aerospace company reported $0.44 earnings per share (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 the consensus estimate 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 quarterly revenue was up 150.7% compared to the same quarter last year. During the same period last year, the company earned $0.47 earnings per share. AeroVironment has set its FY 2026 guidance at 3.400-3.550 EPS. Equities research analysts expect that AeroVironment, Inc. will post 3.38 earnings per share for the current year.

Insider Activity at AeroVironment

In related news, CFO Kevin Patrick Mcdonnell sold 999 shares of the stock in a transaction dated Monday, January 12th. The shares were sold at an average price of $367.60, for a total value of $367,232.40. Following the completion of the sale, the chief financial officer owned 17,301 shares in the company, valued at approximately $6,359,847.60. This trade represents a 5.46% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Brian Charles Shackley sold 200 shares of AeroVironment stock in a transaction that occurred 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 directly owned 5,994 shares in the company, valued at $1,504,014.48. The trade was a 3.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 3,223 shares of company stock valued at $1,092,503. 0.81% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On AeroVironment

Several large investors have recently bought and sold shares of AVAV. Groupama Asset Managment acquired a new stake in AeroVironment in the third quarter worth $314,890,000. Vanguard Group Inc. lifted its holdings in AeroVironment by 14.3% during the second quarter. Vanguard Group Inc. now owns 3,478,114 shares of the aerospace company’s stock worth $991,089,000 after acquiring an additional 433,830 shares during the period. CIBC Private Wealth Group LLC boosted its holdings in shares of AeroVironment by 24,798.7% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 315,716 shares of the aerospace company’s stock worth $99,416,000 after buying an additional 314,448 shares during the last quarter. Norges Bank bought a new position in shares of AeroVironment during the 2nd quarter valued at approximately $75,690,000. Finally, Invesco Ltd. grew its holdings in AeroVironment by 75.6% during the second quarter. Invesco Ltd. now owns 609,019 shares of the aerospace company’s stock valued at $173,540,000 after purchasing an additional 262,239 shares during the period. 86.38% of the stock is currently owned by institutional investors and hedge funds.

AeroVironment Company Profile

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.