AeroVironment (NASDAQ:AVAV) Shares Down 1.7% – Here’s Why

AeroVironment, Inc. (NASDAQ:AVAV) traded down 1.7% during trading on Friday . The company traded as low as $143.30 and last traded at $144.65. 1,519,972 shares were traded during trading, a decline of 5% from the average daily volume of 1,599,706 shares. The stock had previously closed at $147.21.

More AeroVironment News

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Historic $464.8 million laser contract: The U.S. Army selected AeroVironment to produce dozens of LOCUST X3 high-energy laser systems under its Enduring-High Energy Laser program. The award is reportedly the first U.S. production contract for directed-energy weapons, moving the technology from testing into battlefield deployment. AV’s LOCUST Selected for Nearly $500 million Army Counter-UAS Contract
• Positive Sentiment: Expands the counter-drone opportunity: The 30-kilowatt, vehicle-compatible LOCUST X3 system strengthens AeroVironment’s position in counter-UAS defense, an area of growing military demand. The multiyear program could add a new revenue platform alongside the company’s Switchblade and unmanned-aircraft businesses. AeroVironment’s $465 Million Army Laser Win Expands Its Counter-Drone Opportunity
• Positive Sentiment: Analyst support remains favorable: BTIG maintained a Buy rating and a $205 price target, while other coverage described the contract as supportive of scalable growth and potential multiyear margin expansion. The award also builds on AeroVironment’s approximately $1.2 billion backlog. AeroVironment’s New $465M LOCUST Laser Contract Reinforces Buy Rating
• Neutral Sentiment: Execution and earnings are next: AeroVironment is scheduled to report fiscal first-quarter 2027 results on September 9 after the market closes. Investors will likely focus on contract timing, production capacity and whether the laser award changes revenue and profit expectations.
• Negative Sentiment: Valuation and profitability remain concerns: Despite strong recent revenue growth, the company remains unprofitable on a trailing basis and trades at a demanding forward earnings multiple. Production will also require investment, including a previously announced $30 million Albuquerque facility expansion, leaving limited room for execution delays or weaker margins.

Analyst Ratings Changes

Several equities analysts have issued reports on AVAV shares. Citizens Jmp cut their price objective on AeroVironment from $350.00 to $230.00 and set a “market outperform” rating for the company in a research report on Friday, July 10th. Wedbush began coverage on AeroVironment in a research note on Tuesday, June 30th. They issued an “outperform” rating and a $250.00 target price for the company. Wolfe Research cut AeroVironment to a “buy” rating in a report on Tuesday, June 30th. Needham & Company LLC reiterated a “buy” rating and set a $225.00 price target on shares of AeroVironment in a research report on Thursday, July 9th. Finally, Royal Bank Of Canada downgraded shares of AeroVironment from an “outperform” rating to a “sector perform” rating and reduced their price target for the stock from $210.00 to $180.00 in a research report on Thursday, July 9th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $266.68.

AeroVironment Stock Down 1.7%

The company has a debt-to-equity ratio of 0.17, a quick ratio of 3.59 and a current ratio of 4.30. The firm’s 50-day moving average is $159.88 and its two-hundred day moving average is $183.18. The stock has a market cap of $7.35 billion, a P/E ratio of -39.31, a PEG ratio of 4.96 and a beta of 1.41.

AeroVironment (NASDAQ:AVAV) last posted its quarterly earnings data on Monday, June 29th. The aerospace company reported $1.84 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.47 by $0.37. The firm had revenue of $641.62 million for the quarter, compared to the consensus estimate of $555.97 million. AeroVironment had a positive return on equity of 3.71% and a negative net margin of 9.00%.The business’s revenue for the quarter was up 133.3% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.61 EPS. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. On average, equities research analysts anticipate that AeroVironment, Inc. will post 3.25 earnings per share for the current year.

Insiders Place Their Bets

In related news, CAO Brian Shackley sold 205 shares of the firm’s stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $201.86, for a total value of $41,381.30. Following the transaction, the chief accounting officer owned 7,888 shares in the company, valued at $1,592,271.68. This trade represents a 2.53% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen F. Page sold 250 shares of AeroVironment stock in a transaction dated 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 owned 48,503 shares of the company’s stock, valued at approximately $9,311,605.94. The trade was a 0.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 705 shares of company stock valued at $132,979. 0.79% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Hilton Head Capital Partners LLC bought a new stake in shares of AeroVironment during the fourth quarter worth approximately $26,000. National Bank of Canada FI boosted its stake in AeroVironment by 230.3% in the third quarter. National Bank of Canada FI now owns 109 shares of the aerospace company’s stock valued at $34,000 after acquiring an additional 76 shares during the last quarter. Hazlett Burt & Watson Inc. grew its holdings in AeroVironment by 90.0% during the 4th quarter. Hazlett Burt & Watson Inc. now owns 133 shares of the aerospace company’s stock worth $32,000 after acquiring an additional 63 shares during the period. Sunbelt Securities Inc. acquired a new stake in AeroVironment during the 1st quarter worth $25,000. Finally, Banque Cantonale Vaudoise bought a new stake in shares of AeroVironment during the 3rd quarter valued at $44,000. 86.38% of the stock is currently owned by institutional investors and hedge funds.

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.