AeroVironment (NASDAQ:AVAV) Stock Price Down 6.9% - Here's Why

Key Points

• Shares fell about 6.9% intraday to roughly $168 after AeroVironment missed quarterly estimates (EPS $0.64 vs. $0.68 consensus) and reported a negative net margin, with the stock trading well below its 50‑ and 200‑day moving averages.
• The company won a U.S. Army prototype award for the Switchblade 400 and announced expanded loitering‑munition and counter‑UAS offerings (including Halo_Shield and AI/autonomy), bolstering its addressable market amid rising Pentagon drone spending.
• Analysts have cut price targets (average target ~$318.78) but maintain a consensus "Moderate Buy"; management set FY2026 guidance of 2.75–3.10 EPS versus analysts' ~2.94 EPS estimate.

AeroVironment, Inc. (NASDAQ:AVAV - Get Free Report)'s stock price dropped 6.9% during mid-day trading on Tuesday . The company traded as low as $168.33 and last traded at $167.8750. Approximately 780,666 shares changed hands during mid-day trading, a decline of 53% from the average daily volume of 1,652,682 shares. The stock had previously closed at $180.26.

More AeroVironment News

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: AeroVironment won a U.S. Army prototype agreement for its Switchblade® 400 under the LASSO program — the award positions Switchblade 400 as a key component of the Army’s next‑generation loitering munition effort, supporting near‑term development, testing and potential follow‑on production opportunities. U.S. Army Selects AV's Switchblade 400 for LASSO Program
• Positive Sentiment: AVAV announced expanded awards and new products in the loitering‑munition / counter‑UAS category, including the Halo_Shield modular counter‑UAS system and continued emphasis on AI/autonomy — developments that enhance addressable markets (military + critical infrastructure) amid rising Pentagon drone spending. AeroVironment Expands Loitering Munition And Counter UAS Ecosystem With New Awards
• Neutral Sentiment: Market coverage notes AVAV could rebound from a short losing streak as defense budgets shift toward drones and counter‑UAS, but headlines are mixed and short‑term price moves appear sentiment‑driven. AVAV stock looks to snap 2-day losing streak on new Army deal
• Neutral Sentiment: Coverage calling AVAV a Wall Street favorite or highlighting strong secular defense themes can support longer‑term investor interest, but analyst praise is mixed and should be weighed against execution and backlog details. 1 of Wall Street’s Favorite Stock with Competitive Advantages
• Neutral Sentiment: Industry pieces tying AI/vision tech and provisional patent activity to defense spending highlight structural tailwinds; relevance to AVAV depends on product/IP overlap and timing of commercialization. AI Defense Spending Surge Puts a Premium on Proprietary Vision Tech
• Negative Sentiment: Near‑term weakness is driven by a recent quarterly earnings miss (EPS and revenue below consensus) and a negative net margin — investors may be concerned about margin recovery and timing of contract revenues.
• Negative Sentiment: Technical/valuation headwinds: AVAV is well below its 50‑ and 200‑day moving averages and has shown large volatility versus its 1‑year range, which can amplify downside on negative news.

Analyst Upgrades and Downgrades

AVAV has been the topic of a number of recent analyst reports. Citizens Jmp decreased their price objective on shares of AeroVironment from $400.00 to $350.00 and set a "market outperform" rating on the stock in a research note on Wednesday, March 11th. Piper Sandler decreased their price objective on shares of AeroVironment from $391.00 to $290.00 and set an "overweight" rating on the stock in a research note on Tuesday, March 3rd. Robert W. Baird decreased their target price on shares of AeroVironment from $260.00 to $235.00 and set an "outperform" rating on the stock in a research note on Wednesday, March 11th. UBS Group decreased their target price on shares of AeroVironment from $259.00 to $236.00 and set a "neutral" rating on the stock in a research note on Wednesday, March 11th. Finally, Stifel Nicolaus decreased their target price on shares of AeroVironment from $389.00 to $315.00 and set a "buy" rating on the stock in a research note on Wednesday, March 11th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, AeroVironment presently has a consensus rating of "Moderate Buy" and an average price target of $318.78.

AeroVironment Trading Down 7.5%

The business's 50 day simple moving average is $207.62 and its two-hundred day simple moving average is $267.39. The stock has a market cap of $8.32 billion, a P/E ratio of -38.41, a PEG ratio of 2.54 and a beta of 1.35. The company has a quick ratio of 4.54, a current ratio of 5.51 and a debt-to-equity ratio of 0.17.

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 for the quarter, missing the consensus estimate of $0.68 by ($0.04). AeroVironment had a positive return on equity of 3.26% and a negative net margin of 13.93%.The business had revenue of $408.05 million during the quarter, compared to the consensus estimate of $487.94 million. During the same period in the prior year, the firm earned $0.30 EPS. The business's revenue for the quarter was up 143.4% compared to the same quarter last year. AeroVironment has set its FY 2026 guidance at 2.750-3.100 EPS. As a group, analysts expect that AeroVironment, Inc. will post 2.94 EPS for the current year.

Insider Buying and Selling

In related 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 value of $42,504.00. Following the sale, the chief accounting officer owned 5,794 shares of the company's stock, valued at $1,231,340.88. The trade was a 3.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Stephen F. Page sold 250 shares of the business's stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $197.29, for a total transaction of $49,322.50. Following the completion of the sale, the director directly owned 49,501 shares in the company, valued at approximately $9,766,052.29. This represents a 0.50% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 2,975 shares of company stock valued at $740,324 over the last 90 days. 0.81% of the stock is owned by insiders.

Institutional Trading of AeroVironment

Several institutional investors have recently modified their holdings of the business. Harel Insurance Investments & Financial Services Ltd. grew its stake in shares of AeroVironment by 39.0% in the first quarter. Harel Insurance Investments & Financial Services Ltd. now owns 9,341 shares of the aerospace company's stock worth $1,710,000 after purchasing an additional 2,619 shares during the last quarter. Aubrey Capital Management Ltd bought a new stake in shares of AeroVironment in the first quarter worth $293,000. Canal Insurance CO grew its stake in shares of AeroVironment by 16.7% in the first quarter. Canal Insurance CO now owns 70,000 shares of the aerospace company's stock worth $12,814,000 after purchasing an additional 10,000 shares during the last quarter. Bleakley Financial Group LLC bought a new stake in shares of AeroVironment in the first quarter worth $1,900,000. Finally, State of Michigan Retirement System grew its stake in shares of AeroVironment by 2.7% in the first quarter. State of Michigan Retirement System now owns 7,700 shares of the aerospace company's stock worth $1,409,000 after purchasing an additional 200 shares during the last quarter. Institutional investors 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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