AeroVironment (NASDAQ:AVAV) Shares Down 4.9% - Should You Sell?

Key Points

• The stock fell 4.9% to $177.70 on Thursday, trading about 30% below its average daily volume after closing at $186.94 the prior session.
• AeroVironment missed quarterly estimates (EPS $0.64 vs. $0.68; revenue $408.05M vs. $487.94M), despite revenue rising 143% year-over-year, and issued FY2026 guidance of $2.75–$3.10 EPS.
• Analysts have cut price targets recently but the consensus remains a "Moderate Buy" with an average target of $318.78; insiders have sold shares recently while institutional investors own about 86% of the stock.

AeroVironment, Inc. (NASDAQ:AVAV - Get Free Report) shares traded down 4.9% on Thursday . The stock traded as low as $175.87 and last traded at $177.70. 1,260,689 shares traded hands during trading, a decline of 30% from the average session volume of 1,800,078 shares. The stock had previously closed at $186.94.

Analyst Ratings Changes

A number of equities research analysts have commented on the stock. Wall Street Zen downgraded shares of AeroVironment from a "hold" rating to a "sell" rating in a research report on Saturday, April 4th. The Goldman Sachs Group cut their target price on shares of AeroVironment from $486.00 to $429.00 and set a "buy" rating for the company in a research report on Friday, December 12th. UBS Group cut their target price on shares of AeroVironment from $259.00 to $236.00 and set a "neutral" rating for the company in a research report on Wednesday, March 11th. Needham & Company LLC cut their target price on shares of AeroVironment from $450.00 to $400.00 and set a "buy" rating for the company in a research report on Wednesday, March 11th. Finally, Stifel Nicolaus cut their target price on shares of AeroVironment from $389.00 to $315.00 and set a "buy" rating for the company in a research report on Wednesday, March 11th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $318.78.

AeroVironment Stock Performance

The company has a debt-to-equity ratio of 0.17, a quick ratio of 4.54 and a current ratio of 5.51. The firm has a market cap of $8.87 billion, a P/E ratio of -40.94, a P/E/G ratio of 3.21 and a beta of 1.38. The business's 50-day simple moving average is $229.06 and its 200 day simple moving average is $285.60.

AeroVironment (NASDAQ:AVAV - Get Free Report) last issued its quarterly earnings data on Tuesday, March 10th. The aerospace company reported $0.64 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.68 by ($0.04). AeroVironment had a negative net margin of 13.93% and a positive return on equity of 3.26%. The business had revenue of $408.05 million for the quarter, compared to the consensus estimate of $487.94 million. During the same period in the previous year, the firm earned $0.30 EPS. The company's revenue was up 143.4% on a year-over-year basis. AeroVironment has set its FY 2026 guidance at 2.750-3.100 EPS. As a group, equities analysts predict that AeroVironment, Inc. will post 3.38 earnings per share for the current year.

Insider Activity

In other news, CFO Kevin Patrick Mcdonnell sold 396 shares of the business's stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $224.55, for a total transaction of $88,921.80. Following the completion of the sale, the chief financial officer owned 16,026 shares of the company's stock, valued at $3,598,638.30. The trade was a 2.41% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO Brian Charles Shackley sold 200 shares of the business's stock in a transaction on Monday, March 16th. The shares were sold at an average price of $212.52, for a total transaction of $42,504.00. Following the sale, the chief accounting officer directly owned 5,794 shares of the company's stock, valued at approximately $1,231,340.88. The trade was a 3.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 4,724 shares of company stock valued at $1,435,854 in the last 90 days. Company insiders own 0.81% of the company's stock.

Institutional Investors Weigh In On AeroVironment

A number of hedge funds have recently modified their holdings of the business. Hsbc Holdings PLC grew its position in shares of AeroVironment by 31.2% during the 4th quarter. Hsbc Holdings PLC now owns 5,091 shares of the aerospace company's stock valued at $1,235,000 after acquiring an additional 1,210 shares during the period. Mengis Capital Management Inc. grew its position in shares of AeroVironment by 61.2% during the 4th quarter. Mengis Capital Management Inc. now owns 1,501 shares of the aerospace company's stock valued at $363,000 after acquiring an additional 570 shares during the period. Caitong International Asset Management Co. Ltd bought a new stake in shares of AeroVironment during the 4th quarter valued at $195,000. MidFirst Bank bought a new stake in shares of AeroVironment during the 4th quarter valued at $40,000. Finally, Pacer Advisors Inc. lifted its stake in shares of AeroVironment by 45.5% during the 4th quarter. Pacer Advisors Inc. now owns 6,084 shares of the aerospace company's stock valued at $1,472,000 after buying an additional 1,902 shares in the last quarter. Institutional investors own 86.38% of the company's stock.

About AeroVironment

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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