AeroVironment (NASDAQ:AVAV) Rating Lowered to "Hold" at Zacks Research

Key Points

• AeroVironment was downgraded from a "strong-buy" to a "hold" rating by Zacks Research, indicating a shift in investment sentiment.
• Despite the downgrade, the company has a consensus buy rating and a target price of $292.92 from analysts, with two strong buys and sixteen buy ratings.
• AeroVironment's recent quarterly results showed a 140% annual revenue increase, although it reported earnings per share below analysts' expectations, missing by $0.02.

AeroVironment (NASDAQ:AVAV - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued on Tuesday,Zacks.com reports.

A number of other equities research analysts also recently issued reports on AVAV. Wall Street Zen raised shares of AeroVironment from a "sell" rating to a "hold" rating in a research note on Sunday, June 22nd. Citizens Jmp assumed coverage on shares of AeroVironment in a report on Monday, August 4th. They issued a "strong-buy" rating and a $325.00 target price on the stock. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $300.00 price target on shares of AeroVironment in a report on Tuesday, September 9th. Stifel Nicolaus began coverage on AeroVironment in a research report on Tuesday, June 24th. They issued a "buy" rating and a $240.00 price target for the company. Finally, JMP Securities restated a "market outperform" rating and set a $325.00 price objective on shares of AeroVironment in a research report on Monday, August 18th. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and a consensus target price of $292.92.

AeroVironment Trading Up 1.0%

Shares of AVAV stock opened at $301.52 on Tuesday. The company has a current ratio of 5.96, a quick ratio of 5.12 and a debt-to-equity ratio of 0.16. The stock has a market capitalization of $15.05 billion, a price-to-earnings ratio of -471.12, a price-to-earnings-growth ratio of 5.07 and a beta of 1.02. AeroVironment has a 12-month low of $102.25 and a 12-month high of $307.11. The stock's 50-day moving average price is $256.27 and its 200-day moving average price is $200.51.

AeroVironment (NASDAQ:AVAV - Get Free Report) last announced its quarterly earnings results on Tuesday, September 9th. The aerospace company reported $0.32 EPS for the quarter, missing analysts' consensus estimates of $0.34 by ($0.02). AeroVironment had a negative net margin of 4.14% and a positive return on equity of 4.67%. The firm had revenue of $454.68 million for the quarter, compared to the consensus estimate of $446.16 million. During the same period in the previous year, the company posted $0.89 earnings per share. AeroVironment's quarterly revenue was up 140.0% on a year-over-year basis. AeroVironment has set its FY 2026 guidance at 3.600-3.70 EPS. Equities research analysts predict that AeroVironment will post 3.38 EPS for the current fiscal year.

Insider Activity

In other news, CEO Wahid Nawabi sold 17,300 shares of the company's stock in a transaction that occurred on Wednesday, July 16th. The stock was sold at an average price of $263.05, for a total transaction of $4,550,765.00. Following the transaction, the chief executive officer owned 122,233 shares of the company's stock, valued at approximately $32,153,390.65. This represents a 12.40% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 0.81% of the stock is owned by company insiders.

Hedge Funds Weigh In On AeroVironment

Several hedge funds have recently bought and sold shares of AVAV. ORG Partners LLC lifted its position in shares of AeroVironment by 296.0% during the second quarter. ORG Partners LLC now owns 99 shares of the aerospace company's stock worth $27,000 after purchasing an additional 74 shares during the last quarter. RMG Wealth Management LLC purchased a new position in AeroVironment in the 2nd quarter worth about $28,000. MassMutual Private Wealth & Trust FSB lifted its holdings in AeroVironment by 171.1% during the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 244 shares of the aerospace company's stock valued at $29,000 after buying an additional 154 shares in the last quarter. Bessemer Group Inc. boosted its position in AeroVironment by 60.3% in the 2nd quarter. Bessemer Group Inc. now owns 117 shares of the aerospace company's stock valued at $33,000 after buying an additional 44 shares during the period. Finally, Spirit of America Management Corp NY bought a new position in AeroVironment in the 1st quarter worth about $36,000. Institutional investors own 86.38% of the company's stock.

About AeroVironment

AeroVironment, Inc designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses in the United States and internationally. It operates through Small Unmanned Aircraft Systems (SUAS), Tactical Missile System (TMS), Medium Unmanned Aircraft Systems (MUAS), and High Altitude Pseudo-Satellite Systems (HAPS) segments.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.