AeroVironment (NASDAQ:AVAV) Shares Down 9.8% - Should You Sell?

Key Points

• AeroVironment shares fell 9.8% intraday to $257.30 from $285.41 on elevated volume, slipping below its 50- and 200-day moving averages ($288.74 and $294.98), indicating short-term technical weakness.
• The company missed quarterly EPS ($0.44 vs. $0.87 expected) despite revenue beating estimates and rising 150.7% year-over-year; management set FY2026 guidance of 3.40–3.55 EPS, roughly in line with analyst forecasts (~3.38).
• Analysts remain broadly positive with a MarketBeat consensus "Buy" and an average price target of $378.06, though some firms trimmed targets, and insiders recently sold ~3,223 shares (~$1.09M), leaving insiders with 0.81% ownership.

AeroVironment, Inc. (NASDAQ:AVAV - Get Free Report) fell 9.8% during trading on Wednesday . The stock traded as low as $246.02 and last traded at $257.30. 1,805,924 shares were traded during trading, an increase of 1% from the average session volume of 1,796,380 shares. The stock had previously closed at $285.41.

Analysts Set New Price Targets

Several research analysts have weighed in on AVAV shares. Cantor Fitzgerald lowered their target price on shares of AeroVironment from $335.00 to $315.00 and set an "overweight" rating on the stock in a research report on Wednesday, December 10th. Citizens Jmp restated a "market outperform" rating and issued a $400.00 price target on shares of AeroVironment in a report on Wednesday, December 10th. Canaccord Genuity Group set a $400.00 price objective on AeroVironment in a research note on Wednesday, December 10th. BNP Paribas Exane started coverage on AeroVironment in a research report on Tuesday, November 18th. They set an "outperform" rating and a $355.00 target price on the stock. Finally, Jefferies Financial Group reissued a "buy" rating and issued a $390.00 target price on shares of AeroVironment in a report on Thursday, December 11th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Buy" and a consensus price target of $378.06.

AeroVironment Stock Down 9.8%

The company has a market cap of $12.85 billion, a PE ratio of -205.84, a P/E/G ratio of 3.99 and a beta of 1.23. The firm has a 50-day simple moving average of $288.74 and a two-hundred day simple moving average of $294.98. The company has a debt-to-equity ratio of 0.16, a current ratio of 5.08 and a quick ratio of 4.29.

AeroVironment (NASDAQ:AVAV - Get Free Report) last issued its quarterly earnings data on Tuesday, December 9th. The aerospace company reported $0.44 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.87 by ($0.43). The company had revenue of $472.51 million during the quarter, compared to analysts' expectations of $466.16 million. AeroVironment had a negative net margin of 5.08% and a positive return on equity of 3.42%. The firm's revenue was up 150.7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.47 earnings per share. AeroVironment has set its FY 2026 guidance at 3.400-3.550 EPS. Research analysts anticipate that AeroVironment, Inc. will post 3.38 earnings per share for the current fiscal year.

Insider Transactions at AeroVironment

In other news, Director Stephen F. Page sold 1,000 shares of the business's stock in a transaction that occurred on Thursday, January 15th. The shares were sold at an average price of $377.62, for a total value of $377,620.00. Following the completion of the transaction, the director owned 51,001 shares of the company's stock, valued at $19,258,997.62. The trade was a 1.92% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Kevin Patrick Mcdonnell sold 999 shares of the company's stock in a transaction that occurred on Monday, January 12th. The shares were sold at an average price of $367.60, for a total transaction of $367,232.40. Following the transaction, the chief financial officer directly owned 17,301 shares in the company, valued at $6,359,847.60. The trade was a 5.46% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 3,223 shares of company stock worth $1,092,503 over the last ninety days. 0.81% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On AeroVironment

Several hedge funds have recently made changes to their positions in AVAV. Purkiss Capital Advisors LLC increased its stake in AeroVironment by 82.4% in the fourth quarter. Purkiss Capital Advisors LLC now owns 2,313 shares of the aerospace company's stock valued at $559,000 after purchasing an additional 1,045 shares during the last quarter. Family Legacy Inc. boosted its stake in AeroVironment by 2.2% in the 4th quarter. Family Legacy Inc. now owns 2,326 shares of the aerospace company's stock worth $563,000 after buying an additional 51 shares during the last quarter. Nwam LLC purchased a new stake in AeroVironment in the 4th quarter valued at about $579,000. American Assets Inc. purchased a new stake in AeroVironment in the 4th quarter valued at about $605,000. Finally, NewEdge Wealth LLC increased its stake in shares of AeroVironment by 1.1% during the 4th quarter. NewEdge Wealth LLC now owns 3,709 shares of the aerospace company's stock valued at $897,000 after acquiring an additional 39 shares during the last quarter. Institutional investors and hedge funds own 86.38% of the company's stock.

AeroVironment Company Profile

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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