AeroVironment, Inc. (NASDAQ:AVAV) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts collectively rate AeroVironment “Moderate Buy”: Of 24 analysts, 18 recommend buying, two strongly recommend buying, three rate it a hold and one recommends selling. The average 12-month price target is $266.68.
• Defense demand and drone tariffs could support growth: Tariffs of up to 100% on imported drones and components may benefit U.S. manufacturers, while a $117.3 million Army contract and an autonomous-systems partnership add momentum.
• Valuation and execution remain key risks: Recent analyst price-target cuts and a reduced fair-value estimate reflect concerns about elevated valuation, heavier investment needs and execution risk, despite quarterly revenue rising 133.3% year over year and earnings beating estimates.

Shares of AeroVironment, Inc. (NASDAQ:AVAV - Get Free Report) have been given an average recommendation of "Moderate Buy" by the twenty-four analysts that are covering the firm, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, three have assigned a hold recommendation, eighteen have given a buy recommendation and two have given a strong buy recommendation to the company. The average 12 month price target among analysts that have issued ratings on the stock in the last year is $266.6842.

AVAV has been the topic of several analyst reports. Wolfe Research lowered AeroVironment to a "buy" rating in a report on Tuesday, June 30th. Jefferies Financial Group dropped their price objective on shares of AeroVironment from $305.00 to $229.00 and set a "buy" rating for the company in a report on Wednesday, July 1st. Wedbush initiated coverage on shares of AeroVironment in a research report on Tuesday, June 30th. They set an "outperform" rating and a $250.00 price objective for the company. Weiss Ratings reaffirmed a "sell (d)" rating on shares of AeroVironment in a research note on Monday, June 8th. Finally, Citizens Jmp decreased their target price on shares of AeroVironment from $350.00 to $230.00 and set a "market outperform" rating on the stock in a report on Friday, July 10th.

Key Stories Impacting AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: President Donald Trump signed a proclamation imposing tariffs of up to 100% on imported drones and critical components. The policy is intended to reduce dependence on foreign supply chains and could give U.S. manufacturers such as AeroVironment a competitive advantage, potentially increasing demand for domestic systems. Trump administration imposes sweeping tariffs on foreign drone imports
• Positive Sentiment: AVAV is participating in a wider rally among domestic drone and defense stocks, including Kratos, Red Cat and Ondas, as investors anticipate that tariff protection could shift business toward U.S.-based suppliers. AeroVironment, Ondas, and Kratos Rising as Trump Levies Tariffs on Drone Imports
• Positive Sentiment: Recent momentum has also been supported by strong defense demand, a reported $117.3 million Army contract and a new autonomous-systems partnership. These developments reinforce the view that AeroVironment could benefit from sustained military procurement. AVAV Outperforms Industry in the Past Month
• Neutral Sentiment: Analysts remain constructive, with Clear Street maintaining a Buy rating, but valuation models suggest the shares may be near fair value after substantial long-term gains. Investors may therefore require continued contract wins and execution to justify further appreciation. Clear Street Remains a Buy on AeroVironment
• Negative Sentiment: One updated valuation analysis lowered its implied fair value estimate from approximately $251.93 to $225.77 per share, citing execution risk, heavier investment needs and elevated valuation following sharply revised expectations. This could limit upside if tariff-related benefits take time to materialize. AeroVironment Stock Sees Fair Value Cut

Insider Activity at AeroVironment

In related news, CAO Brian Charles Shackley sold 205 shares of the stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $201.86, for a total value of $41,381.30. Following the completion of the transaction, the chief accounting officer directly owned 7,888 shares in the company, valued at approximately $1,592,271.68. This represents a 2.53% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen F. Page sold 250 shares of the firm's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $174.41, for a total value of $43,602.50. Following the sale, the director directly owned 49,001 shares of the company's stock, valued at approximately $8,546,264.41. 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. 0.81% of the stock is currently owned by insiders.

Hedge Funds Weigh In On AeroVironment

Hedge funds have recently modified their holdings of the business. Hilton Head Capital Partners LLC purchased a new stake in AeroVironment in the 4th quarter valued at about $26,000. National Bank of Canada FI boosted its stake in AeroVironment by 230.3% during the third quarter. National Bank of Canada FI now owns 109 shares of the aerospace company's stock worth $34,000 after buying an additional 76 shares during the period. Hazlett Burt & Watson Inc. increased its position in shares of AeroVironment by 90.0% during the fourth quarter. Hazlett Burt & Watson Inc. now owns 133 shares of the aerospace company's stock valued at $32,000 after acquiring an additional 63 shares during the last quarter. Sunbelt Securities Inc. acquired a new stake in shares of AeroVironment during the first quarter valued at about $25,000. Finally, TD Waterhouse Canada Inc. increased its position in shares of AeroVironment by 73.8% during the fourth quarter. TD Waterhouse Canada Inc. now owns 139 shares of the aerospace company's stock valued at $34,000 after acquiring an additional 59 shares during the last quarter. 86.38% of the stock is currently owned by hedge funds and other institutional investors.

AeroVironment Price Performance

NASDAQ:AVAV opened at $192.81 on Friday. AeroVironment has a one year low of $135.20 and a one year high of $417.86. 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 stock has a market cap of $9.76 billion, a PE ratio of -52.39, a P/E/G ratio of 6.56 and a beta of 1.41. The stock has a 50 day moving average price of $162.61 and a 200 day moving average price of $195.05.

AeroVironment (NASDAQ:AVAV - Get Free Report) last announced its quarterly earnings data on Monday, June 29th. The aerospace company reported $1.84 EPS for the quarter, topping analysts' consensus estimates 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 firm's revenue was up 133.3% compared to the same quarter last year. During the same quarter last year, the business posted $1.61 earnings per share. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. Equities research analysts expect that AeroVironment will post 3.26 EPS for the current fiscal year.

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.

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