AeroVironment (NASDAQ:AVAV) Stock Price Up 8.2% - Should You Buy?

Key Points

• Shares of AeroVironment jumped 8.2% to about $194 midday on a defense-sector rally, supported by a positive BNP Paribas note, the appointment of a new CFO, and a three‑year $25M USAF contract that boosted investor sentiment.
• Recent quarterly results were mixed — revenue and EPS missed Wall Street estimates (revenue $408.1M vs. ~$488M est.; EPS $0.64 vs. $0.68 est.), though revenue was up 143% year‑over‑year and FY‑2026 guidance is 2.75–3.10 EPS versus analyst consensus ~3.38.
• Analyst views and positioning are mixed: the consensus rating is a "Moderate Buy" with a $318.78 target amid several price‑target cuts and a small number of sell ratings, while institutional ownership is high (86.4%) and insiders have recently trimmed positions.

Shares of AeroVironment, Inc. (NASDAQ:AVAV - Get Free Report) rose 8.2% during mid-day trading on Monday . The company traded as high as $194.82 and last traded at $194.39. Approximately 1,268,989 shares traded hands during trading, a decline of 29% from the average daily volume of 1,779,236 shares. The stock had previously closed at $179.72.

Key Stories Impacting AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: BNP Paribas flagged upside for AeroVironment, citing steady end-market demand for tactical unmanned systems and recurring revenue visibility — the note supports further multiple expansion and lifted sentiment among institutional investors. Read More.
• Positive Sentiment: Major defense/tech names including AeroVironment jumped in a sector-wide rally; headlines point to renewed investor interest in defense suppliers and satellite/space-related plays, which can drive multiple re-rating and short-term flows into AVAV. Read More.
• Positive Sentiment: AeroVironment named Sean T. Woodward as EVP and Chief Financial Officer effective May 1; management transitions with an experienced finance leader and an announced advisory overlap (outgoing CFO staying through July) reduce execution risk during growth and integration. Read More.
• Positive Sentiment: Coverage pieces highlight AVAV’s acquisition strategy as central to scaling capabilities, cross-selling and unlocking new revenue streams — investors view successful M&A as a path to faster growth and higher long-term margins. Read More.
• Positive Sentiment: AeroVironment won a three‑year, $25M USAF contract via its UES division to mature human performance technologies — incremental government revenue and an extended footprint in defense R&D programs strengthen backlog and credibility with defense customers. Read More.
• Positive Sentiment: Broader thematic interest tied to the Artemis II mission and space-related spending is drawing investor attention to companies with relevant tech exposure, and coverage suggests AVAV as a beneficiary of increased space/defense capital flows. Read More.
• Neutral Sentiment: Analyst consensus remains constructive but cautious — AVAV carries an average “moderate buy” rating, which supports the rally but suggests some analysts still want to see sustained revenue/earnings delivery before more upgrades. Read More.
• Negative Sentiment: Recent quarterly results included a revenue beat in year-over-year growth but missed Wall Street’s revenue and EPS expectations, and the stock still trades well below its 52‑week high; lingering execution/earnings recovery concerns remain a potential headwind until guidance is consistently met.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on AVAV shares. Zacks Research downgraded AeroVironment from a "hold" rating to a "strong sell" rating in a research note on Wednesday, March 4th. Piper Sandler dropped their price objective on AeroVironment from $391.00 to $290.00 and set an "overweight" rating for the company in a research note on Tuesday, March 3rd. JPMorgan Chase & Co. started coverage on AeroVironment in a research note on Tuesday, February 17th. They issued an "overweight" rating and a $320.00 price objective for the company. Citizens Jmp dropped their price objective on AeroVironment from $400.00 to $350.00 and set a "market outperform" rating for the company in a research note on Wednesday, March 11th. Finally, UBS Group dropped their price objective on AeroVironment from $259.00 to $236.00 and set a "neutral" rating for the company in a research note on Wednesday, March 11th. 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 issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $318.78.

AeroVironment Trading Up 8.2%

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 company has a market cap of $9.71 billion, a price-to-earnings ratio of -44.79, a PEG ratio of 3.13 and a beta of 1.38. The business's 50-day simple moving average is $224.78 and its 200-day simple moving average is $283.87.

AeroVironment (NASDAQ:AVAV - Get Free Report) last released its quarterly earnings results 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). The company had revenue of $408.05 million for the quarter, compared to analysts' expectations of $487.94 million. AeroVironment had a positive return on equity of 3.26% and a negative net margin of 13.93%.The business's quarterly revenue was up 143.4% on a year-over-year basis. During the same period in the previous year, the business posted $0.30 EPS. AeroVironment has set its FY 2026 guidance at 2.750-3.100 EPS. Research analysts predict that AeroVironment, Inc. will post 3.38 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 firm's stock in a transaction on Monday, March 16th. The stock was sold at an average price of $212.52, for a total transaction of $42,504.00. Following the completion of the transaction, the chief accounting officer owned 5,794 shares of the company's stock, valued at approximately $1,231,340.88. This trade represents a 3.34% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Kevin Patrick Mcdonnell sold 879 shares of the firm's stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $267.60, for a total value of $235,220.40. Following the transaction, the chief financial officer directly owned 16,422 shares of the company's stock, valued at $4,394,527.20. The trade was a 5.08% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 3,725 shares of company stock valued at $1,068,621. Corporate insiders own 0.81% of the company's stock.

Hedge Funds Weigh In On AeroVironment

Several hedge funds have recently bought and sold shares of AVAV. Groupama Asset Managment purchased a new position in AeroVironment during the third quarter worth $314,890,000. Norges Bank purchased a new stake in shares of AeroVironment in the fourth quarter valued at $94,655,000. CIBC Private Wealth Group LLC grew its position in shares of AeroVironment by 24,798.7% in the third quarter. CIBC Private Wealth Group LLC now owns 315,716 shares of the aerospace company's stock valued at $99,416,000 after purchasing an additional 314,448 shares during the period. Swedbank AB grew its position in shares of AeroVironment by 22,773.4% in the fourth quarter. Swedbank AB now owns 261,214 shares of the aerospace company's stock valued at $63,185,000 after purchasing an additional 260,072 shares during the period. Finally, Marshall Wace LLP grew its position in shares of AeroVironment by 4,770.1% in the fourth quarter. Marshall Wace LLP now owns 260,207 shares of the aerospace company's stock valued at $62,941,000 after purchasing an additional 254,864 shares during the period. Hedge funds and other 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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