AeroVironment (NASDAQ:AVAV) Stock Price Down 5.7% - Should You Sell?

Key Points

• AeroVironment shares fell 5.7% on Friday, trading as low as $171.81 after closing at $183.69, on volume well below average.
• Investor sentiment was pressured by class-action lawsuits alleging securities-law violations, with multiple law firms announcing or repeating notices and a lead-plaintiff deadline highlighted for July 27, 2026.
• Recent fundamentals and analyst views were mixed: the company missed quarterly EPS and revenue estimates, while several analysts cut price targets but still mostly maintain Buy/Outperform-type ratings, with a consensus target of $318.78.

Shares of AeroVironment, Inc. (NASDAQ:AVAV - Get Free Report) were down 5.7% during trading on Friday . The stock traded as low as $171.81 and last traded at $173.1320. Approximately 304,651 shares changed hands during mid-day trading, a decline of 80% from the average daily volume of 1,557,145 shares. The stock had previously closed at $183.69.

More AeroVironment News

Here are the key news stories impacting AeroVironment this week:

• Negative Sentiment: Multiple law firms, including Bronstein, Schall, Rosen, Pomerantz, DJS, and others, announced or repeated class-action notices against AeroVironment over alleged securities-law violations. These actions may increase investor concern about potential damages, legal costs, and management distraction. Article: Bronstein, Gewirtz & Grossman LLC Urges AeroVironment, Inc. Investors to Act: Class Action Filed Alleging Investor Harm
• Negative Sentiment: The lawsuits focus on investors who bought AVAV shares between June 25, 2025 and March 10, 2026, and several firms highlighted a July 27, 2026 lead-plaintiff deadline. The repeated legal notices suggest the case is gaining momentum, which can weigh on sentiment in the near term. Article: Pomerantz Law Firm Announces the Filing of a Class Action Against AeroVironment, Inc. and Certain Officers - AVAV
• Neutral Sentiment: No new operating results, contracts, or guidance updates were included in these articles, so today’s move appears driven mainly by litigation overhang rather than fresh business fundamentals.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on AVAV shares. Needham & Company LLC lowered their target price on shares of AeroVironment from $450.00 to $400.00 and set a "buy" rating on the stock in a report on Wednesday, March 11th. Robert W. Baird lowered their target price on shares of AeroVironment from $260.00 to $235.00 and set an "outperform" rating on the stock in a report on Wednesday, March 11th. UBS Group lowered their target price on shares of AeroVironment from $259.00 to $236.00 and set a "neutral" rating on the stock in a report on Wednesday, March 11th. KeyCorp reduced their price target on shares of AeroVironment from $330.00 to $295.00 and set an "overweight" rating on the stock in a research report on Wednesday, March 11th. Finally, Citizens Jmp reduced their price target on shares of AeroVironment from $400.00 to $350.00 and set a "market outperform" rating on the stock in a research report on Wednesday, March 11th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $318.78.

AeroVironment Price Performance

The company has a debt-to-equity ratio of 0.17, a current ratio of 5.51 and a quick ratio of 4.54. The firm has a market cap of $8.65 billion, a P/E ratio of -39.86, a PEG ratio of 2.37 and a beta of 1.35. The stock's 50-day simple moving average is $184.46 and its two-hundred day simple moving average is $235.40.

AeroVironment (NASDAQ:AVAV - Get Free Report) last posted its quarterly earnings data on Tuesday, March 10th. The aerospace company reported $0.64 earnings per share 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 firm had revenue of $408.05 million for the quarter, compared to the consensus estimate of $487.94 million. During the same quarter last year, the firm earned $0.30 EPS. The company's revenue was up 143.4% on a year-over-year basis. Equities research analysts forecast that AeroVironment, Inc. will post 2.94 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other AeroVironment news, 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 transaction, the chief accounting officer owned 5,794 shares in the company, valued at $1,231,340.88. The trade was a 3.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Stephen F. Page sold 250 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 $53,130.00. Following the transaction, the director owned 49,751 shares in the company, valued at $10,573,082.52. This trade represents a 0.50% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 950 shares of company stock worth $185,534 in the last quarter. Company insiders own 0.81% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Rothschild Investment LLC grew its holdings in shares of AeroVironment by 7.8% in the third quarter. Rothschild Investment LLC now owns 498 shares of the aerospace company's stock worth $157,000 after purchasing an additional 36 shares during the last quarter. Legacy Bridge LLC grew its holdings in shares of AeroVironment by 1.0% in the fourth quarter. Legacy Bridge LLC now owns 4,046 shares of the aerospace company's stock worth $979,000 after purchasing an additional 39 shares during the last quarter. NewEdge Wealth LLC grew its holdings in shares of AeroVironment by 1.1% in the fourth quarter. NewEdge Wealth LLC now owns 3,709 shares of the aerospace company's stock worth $897,000 after purchasing an additional 39 shares during the last quarter. J.W. Cole Advisors Inc. grew its holdings in shares of AeroVironment by 3.7% in the fourth quarter. J.W. Cole Advisors Inc. now owns 1,081 shares of the aerospace company's stock worth $261,000 after purchasing an additional 39 shares during the last quarter. Finally, Parkside Financial Bank & Trust grew its holdings in shares of AeroVironment by 29.7% in the fourth quarter. Parkside Financial Bank & Trust now owns 188 shares of the aerospace company's stock worth $45,000 after purchasing an additional 43 shares during the last quarter. 86.38% of the stock is currently owned by institutional investors.

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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