AeroVironment (NASDAQ:AVAV) Shares Down 3.1% - Here's Why

Key Points

• AeroVironment's stock price dropped 3.1% during trading, closing at $230.93 and seeing a significant decline in trading volume compared to its average.
• Analysts remain optimistic, with multiple upgrades and price targets ranging from $225.00 to $325.00, indicating a general consensus rating of "Buy."
• In its latest earnings report, AeroVironment reported an EPS of $1.61, surpassing expectations and showing a year-over-year revenue increase of 39.6%.

AeroVironment, Inc. (NASDAQ:AVAV - Get Free Report)'s stock price dropped 3.1% during trading on Thursday . The stock traded as low as $228.10 and last traded at $230.93. Approximately 213,827 shares traded hands during mid-day trading, a decline of 74% from the average daily volume of 817,641 shares. The stock had previously closed at $238.23.

Wall Street Analysts Forecast Growth

AVAV has been the subject of a number of analyst reports. Wedbush upgraded shares of AeroVironment to an "outperform" rating in a research note on Wednesday, June 25th. Raymond James Financial set a $225.00 price objective on shares of AeroVironment and gave the company a "strong-buy" rating in a research note on Wednesday, June 25th. BTIG Research raised their price objective on shares of AeroVironment from $225.00 to $300.00 and gave the company a "buy" rating in a research note on Tuesday, June 24th. Needham & Company LLC started coverage on shares of AeroVironment in a research note on Tuesday, August 19th. They set a "buy" rating and a $300.00 price objective for the company. Finally, Citizens Jmp started 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. Three research analysts have rated the stock with a Strong Buy rating and fifteen have issued a Buy rating to the stock. According to data from MarketBeat.com, AeroVironment has an average rating of "Buy" and an average price target of $292.33.

AeroVironment Price Performance

The firm has a 50-day simple moving average of $255.22 and a two-hundred day simple moving average of $189.06. The company has a market capitalization of $11.32 billion, a price-to-earnings ratio of 146.30 and a beta of 1.02. The company has a current ratio of 3.52, a quick ratio of 2.69 and a debt-to-equity ratio of 0.03.

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

Insider Buying and Selling at AeroVironment

In other news, CEO Wahid Nawabi sold 17,300 shares of the firm's stock in a transaction on Wednesday, July 16th. The stock was sold at an average price of $263.05, for a total value of $4,550,765.00. Following the completion of the transaction, the chief executive officer owned 122,233 shares in the company, valued at $32,153,390.65. This trade represents a 12.40% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 0.81% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On AeroVironment

A number of institutional investors have recently modified their holdings of the company. Northern Trust Corp raised its holdings in AeroVironment by 11.9% in the 4th quarter. Northern Trust Corp now owns 299,588 shares of the aerospace company's stock valued at $46,104,000 after acquiring an additional 31,789 shares during the last quarter. BNP Paribas Financial Markets raised its position in shares of AeroVironment by 3.1% during the 4th quarter. BNP Paribas Financial Markets now owns 30,746 shares of the aerospace company's stock valued at $4,732,000 after acquiring an additional 932 shares in the last quarter. Benjamin Edwards Inc. increased its position in AeroVironment by 6.2% in the fourth quarter. Benjamin Edwards Inc. now owns 3,486 shares of the aerospace company's stock worth $536,000 after buying an additional 205 shares during the period. Bank of America Corp DE increased its holdings in shares of AeroVironment by 17.0% during the fourth quarter. Bank of America Corp DE now owns 45,272 shares of the aerospace company's stock valued at $6,967,000 after purchasing an additional 6,589 shares during the period. Finally, Baird Financial Group Inc. acquired a new position in shares of AeroVironment during the fourth quarter valued at $2,019,000. Institutional investors and hedge funds 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.