AeroVironment (NASDAQ:AVAV) Shares Gap Up - Should You Buy?

Key Points

• AeroVironment shares gapped up premarket, opening at $284.24 from a $252.25 close and trading near $300.73 on about 1.14 million shares.
• Analyst consensus is a “Moderate Buy” with an average price target of $367, but estimates and ratings vary widely (from UBS’s $259 neutral to multiple buy/strong-buy calls and Goldman Sachs’ $429 target after a cut).
• The company reported revenue up 150.7% year-over-year but missed EPS ($0.44 vs. $0.87 expected); AeroVironment set FY2026 guidance of 3.400–3.550 EPS while analysts expect roughly 3.38 EPS.

AeroVironment, Inc. (NASDAQ:AVAV - Get Free Report)'s stock price gapped up prior to trading on Monday . The stock had previously closed at $252.25, but opened at $284.24. AeroVironment shares last traded at $300.7310, with a volume of 1,141,004 shares trading hands.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on AVAV shares. The Goldman Sachs Group decreased their target price on shares of AeroVironment from $486.00 to $429.00 and set a "buy" rating on the stock in a research report on Friday, December 12th. UBS Group initiated coverage on AeroVironment in a research report on Wednesday, February 18th. They issued a "neutral" rating and a $259.00 target price on the stock. Piper Sandler reissued an "overweight" rating on shares of AeroVironment in a research report on Wednesday, December 10th. BNP Paribas Exane initiated coverage on AeroVironment in a report on Tuesday, November 18th. They issued an "outperform" rating and a $355.00 price objective on the stock. Finally, Citizens Jmp reiterated a "market outperform" rating and set a $400.00 target price on shares of AeroVironment in a report on Thursday, February 12th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $367.00.

AeroVironment Stock Performance

The firm's 50 day simple moving average is $287.75 and its 200-day simple moving average is $294.15. The company has a debt-to-equity ratio of 0.16, a quick ratio of 4.29 and a current ratio of 5.08. The company has a market capitalization of $10.53 billion, a price-to-earnings ratio of -168.69, a P/E/G ratio of 3.82 and a beta of 1.26.

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

Insider Buying and Selling at AeroVironment

In other news, CAO Brian Charles Shackley sold 200 shares of AeroVironment stock in a transaction that occurred on Tuesday, December 30th. The stock was sold at an average price of $250.92, for a total transaction of $50,184.00. Following the sale, the chief accounting officer owned 5,994 shares of the company's stock, valued at approximately $1,504,014.48. This trade represents a 3.23% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Kevin Patrick Mcdonnell sold 999 shares of the business's stock in a transaction 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 completion of the sale, the chief financial officer directly owned 17,301 shares in the company, valued at $6,359,847.60. This trade represents a 5.46% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 4,339 shares of company stock valued at $1,353,910 in the last quarter. Corporate insiders own 0.81% of the company's stock.

Institutional Investors Weigh In On AeroVironment

A number of hedge funds have recently added to or reduced their stakes in the stock. United Services Automobile Association bought a new stake in shares of AeroVironment during the first quarter valued at approximately $225,000. Schnieders Capital Management LLC. acquired a new position in AeroVironment during the 2nd quarter valued at about $285,000. Nisa Investment Advisors LLC boosted its stake in shares of AeroVironment by 30.4% in the 2nd quarter. Nisa Investment Advisors LLC now owns 936 shares of the aerospace company's stock valued at $267,000 after purchasing an additional 218 shares during the last quarter. Envestnet Asset Management Inc. raised its stake in shares of AeroVironment by 14.2% during the second quarter. Envestnet Asset Management Inc. now owns 39,181 shares of the aerospace company's stock worth $11,165,000 after buying an additional 4,869 shares during the last quarter. Finally, Bessemer Group Inc. lifted its holdings in AeroVironment by 60.3% in the second quarter. Bessemer Group Inc. now owns 117 shares of the aerospace company's stock valued at $33,000 after buying an additional 44 shares during the period. 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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