AeroVironment (NASDAQ:AVAV) Shares Down 1.8% - Should You Sell?

Key Points

• AeroVironment's stock price fell by 1.8% during mid-day trading, with approximately 195,671 shares traded, a significant decline compared to its average daily volume.
• Equities research analysts have a consensus rating of "Buy" for AeroVironment, with an average price target of $285.33; several analysts have set targets as high as $335.00.
• The company reported strong earnings, posting $1.61 EPS which surpassed estimates, and a year-over-year revenue increase of 39.6%.

AeroVironment, Inc. (NASDAQ:AVAV - Get Free Report)'s stock price was down 1.8% during mid-day trading on Wednesday . The company traded as low as $247.50 and last traded at $246.02. Approximately 195,671 shares were traded during mid-day trading, a decline of 77% from the average daily volume of 833,941 shares. The stock had previously closed at $250.49.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the stock. Oppenheimer reiterated an "outperform" rating on shares of AeroVironment in a report on Sunday, June 29th. Wedbush raised shares of AeroVironment to an "outperform" rating in a research note on Wednesday, June 25th. The Goldman Sachs Group started coverage on AeroVironment in a research note on Monday, June 30th. They set a "buy" rating and a $301.00 price target on the stock. Raymond James Financial set a $225.00 price objective on AeroVironment and gave the company a "strong-buy" rating in a research report on Wednesday, June 25th. Finally, Cantor Fitzgerald began coverage on shares of AeroVironment in a report on Tuesday, July 8th. They set an "overweight" rating and a $335.00 price objective on the stock. One equities research analyst has rated the stock with a hold rating, fifteen have assigned a buy rating and three have given a strong buy rating to the company. Based on data from MarketBeat, AeroVironment presently has a consensus rating of "Buy" and an average target price of $285.33.

AeroVironment Price Performance

The business's 50 day moving average price is $239.24 and its 200-day moving average price is $181.62. The company has a quick ratio of 2.69, a current ratio of 3.52 and a debt-to-equity ratio of 0.03. The company has a market cap of $12.57 billion, a PE ratio of 164.39 and a beta of 0.99.

AeroVironment (NASDAQ:AVAV - Get Free Report) last posted its quarterly earnings data on Tuesday, June 24th. The aerospace company reported $1.61 earnings per share for the quarter, beating analysts' consensus estimates of $1.41 by $0.20. AeroVironment had a net margin of 5.32% and a return on equity of 10.68%. The company had revenue of $275.05 million during the quarter, compared to analysts' expectations of $242.69 million. During the same period in the prior year, the company posted $0.43 EPS. The firm's revenue for the quarter was up 39.6% on a year-over-year basis. As a group, analysts forecast that AeroVironment, Inc. will post 3.38 earnings per share for the current year.

Insider Buying and Selling at AeroVironment

In related news, CEO Wahid Nawabi sold 17,300 shares of the company's stock in a transaction on Wednesday, July 16th. The shares were sold at an average price of $263.05, for a total value of $4,550,765.00. Following the sale, the chief executive officer directly owned 122,233 shares of the company's stock, valued at $32,153,390.65. This represents a 12.40% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 1.27% of the company's stock.

Hedge Funds Weigh In On AeroVironment

Large investors have recently modified their holdings of the stock. Vanguard Group Inc. raised its stake in AeroVironment by 14.3% during the second quarter. Vanguard Group Inc. now owns 3,478,114 shares of the aerospace company's stock valued at $991,089,000 after buying an additional 433,830 shares in the last quarter. Alyeska Investment Group L.P. boosted its holdings in AeroVironment by 48.2% in the first quarter. Alyeska Investment Group L.P. now owns 902,814 shares of the aerospace company's stock worth $107,606,000 after purchasing an additional 293,553 shares during the period. Stephens Investment Management Group LLC boosted its holdings in AeroVironment by 41.0% in the first quarter. Stephens Investment Management Group LLC now owns 763,489 shares of the aerospace company's stock worth $91,000,000 after purchasing an additional 221,948 shares during the period. Geode Capital Management LLC increased its stake in AeroVironment by 1.0% during the second quarter. Geode Capital Management LLC now owns 678,431 shares of the aerospace company's stock valued at $193,342,000 after purchasing an additional 6,475 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of AeroVironment by 7.8% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 456,486 shares of the aerospace company's stock worth $54,409,000 after purchasing an additional 33,169 shares during the period. Institutional investors own 86.38% of the company's stock.

AeroVironment Company Profile

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.

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