AeroVironment (NASDAQ:AVAV) Shares Down 2.2% - Should You Sell?

Key Points

• AeroVironment's stock decreased by 2.2% during mid-day trading, closing at $221.68 with a significant decline in trading volume compared to its average.
• Equities analysts are generally optimistic about AeroVironment, with a consensus rating of "Buy" and a price target averaging $292.33, following several "buy" and "strong-buy" ratings from firms like Stifel Nicolaus and Goldman Sachs.
• The company's recent earnings report exceeded expectations, showing a year-over-year revenue increase of 39.6%, and it has set a FY 2026 EPS guidance of $2.800-$3.000.

AeroVironment, Inc. (NASDAQ:AVAV - Get Free Report) was down 2.2% during mid-day trading on Friday . The company traded as low as $220.88 and last traded at $221.68. Approximately 273,378 shares traded hands during trading, a decline of 67% from the average daily volume of 820,238 shares. The stock had previously closed at $226.76.

Analyst Ratings Changes

A number of equities analysts have issued reports on AVAV shares. Stifel Nicolaus assumed coverage on AeroVironment in a research note on Tuesday, June 24th. They set a "buy" rating and a $240.00 price target for the company. The Goldman Sachs Group assumed coverage on AeroVironment in a research report on Monday, June 30th. They set a "buy" rating and a $301.00 price objective for the company. Citizens Jmp began coverage on AeroVironment in a research report on Monday, August 4th. They set a "strong-buy" rating and a $325.00 price objective for the company. Oppenheimer restated an "outperform" rating on shares of AeroVironment in a report on Sunday, June 29th. Finally, Canaccord Genuity Group initiated coverage on AeroVironment in a research report on Monday, August 11th. They issued a "buy" rating and a $305.00 price target on the stock. Three research analysts have rated the stock with a Strong Buy rating and fifteen have assigned a Buy rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus price target of $292.33.

AeroVironment Stock Performance

The stock has a market cap of $11.29 billion, a P/E ratio of 145.86 and a beta of 1.02. The stock has a fifty day simple moving average of $254.31 and a 200-day simple moving average of $189.54. The company has a debt-to-equity ratio of 0.03, a quick ratio of 2.69 and a current ratio of 3.52.

AeroVironment (NASDAQ:AVAV - Get Free Report) last issued its earnings results on Tuesday, June 24th. The aerospace company reported $1.61 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.41 by $0.20. The business had revenue of $275.05 million during the quarter, compared to the consensus estimate of $242.69 million. AeroVironment had a net margin of 5.32% and a return on equity of 10.68%. AeroVironment's revenue was up 39.6% on a year-over-year basis. During the same period last year, the business posted $0.43 EPS. AeroVironment has set its FY 2026 guidance at 2.800-3.000 EPS. On average, equities analysts expect that AeroVironment, Inc. will post 3.38 earnings per share for the current year.

Insider Activity at AeroVironment

In related news, CEO Wahid Nawabi sold 17,300 shares of the business'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 transaction, the chief executive officer owned 122,233 shares in the company, valued at $32,153,390.65. The trade was a 12.40% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 0.81% of the company's stock.

Institutional Investors Weigh In On AeroVironment

Several hedge funds and other institutional investors have recently made changes to their positions in AVAV. Stephens Investment Management Group LLC grew its position in AeroVironment by 41.0% in the 1st 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 in the last quarter. Penserra Capital Management LLC lifted its stake in AeroVironment by 35.4% in the 1st quarter. Penserra Capital Management LLC now owns 17,873 shares of the aerospace company's stock worth $2,130,000 after purchasing an additional 4,669 shares in the last quarter. Stephens Inc. AR lifted its stake in AeroVironment by 94.8% in the 1st quarter. Stephens Inc. AR now owns 4,415 shares of the aerospace company's stock worth $526,000 after purchasing an additional 2,148 shares in the last quarter. Bank of America Corp DE increased its holdings in shares of AeroVironment by 17.0% in the 4th quarter. Bank of America Corp DE now owns 45,272 shares of the aerospace company's stock worth $6,967,000 after buying an additional 6,589 shares during the last quarter. Finally, Vontobel Holding Ltd. bought a new position in shares of AeroVironment in the 1st quarter worth $1,142,000. 86.38% of the stock is owned by institutional investors.

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.

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