AeroVironment (NASDAQ:AVAV) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded AeroVironment from “hold” to “sell,” adding to a mixed analyst picture even though the broader consensus still sits at “Moderate Buy” with a $318.78 average price target.
• The company’s latest earnings missed expectations. AeroVironment reported $0.64 EPS versus the $0.68 estimate and revenue of $408.05 million versus $487.94 million expected, though revenue was still up 143.4% year over year.
• Recent defense contract wins and drone-sector optimism are supporting sentiment. The company announced a $20 million Air Force/Space Force contract and a $43 million SkyRange-related contract, even as securities class-action claims and insider selling create some overhang.

AeroVironment (NASDAQ:AVAV - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Saturday.

Other research analysts have also issued reports about the company. Canaccord Genuity Group decreased their price objective on AeroVironment from $330.00 to $300.00 and set a "buy" rating on the stock in a report on Thursday, March 12th. Piper Sandler reduced their target price on AeroVironment from $391.00 to $290.00 and set an "overweight" rating on the stock in a report on Tuesday, March 3rd. Stifel Nicolaus reduced their target price on AeroVironment from $389.00 to $315.00 and set a "buy" rating on the stock in a report on Wednesday, March 11th. Zacks Research raised AeroVironment from a "strong sell" rating to a "hold" rating in a report on Monday, May 4th. Finally, Jefferies Financial Group reduced their target price on AeroVironment from $390.00 to $305.00 and set a "buy" rating on the stock in a report on Thursday, March 12th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $318.78.

AeroVironment Stock Performance

Shares of NASDAQ AVAV opened at $207.24 on Friday. 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 stock's fifty day moving average price is $185.32 and its two-hundred day moving average price is $242.53. AeroVironment has a one year low of $156.00 and a one year high of $417.86. The firm has a market cap of $10.35 billion, a price-to-earnings ratio of -47.75, a P/E/G ratio of 2.94 and a beta of 1.35.

AeroVironment (NASDAQ:AVAV - Get Free Report) last issued its quarterly earnings data on Tuesday, March 10th. The aerospace company reported $0.64 EPS 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 during the quarter, compared to analyst estimates of $487.94 million. During the same period in the prior year, the company earned $0.30 earnings per share. The business's quarterly revenue was up 143.4% compared to the same quarter last year. AeroVironment has set its FY 2026 guidance at 2.750-3.100 EPS. On average, equities analysts forecast that AeroVironment will post 2.94 EPS for the current year.

Insider Buying and Selling at AeroVironment

In other AeroVironment news, CFO Kevin Patrick Mcdonnell sold 396 shares of the stock in a transaction dated Tuesday, March 10th. The stock was sold at an average price of $224.55, for a total value of $88,921.80. Following the completion of the transaction, the chief financial officer directly owned 16,026 shares in the company, valued at approximately $3,598,638.30. This trade represents a 2.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Stephen F. Page sold 250 shares of the stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $212.52, for a total value of $53,130.00. Following the completion of the transaction, the director owned 49,751 shares of the company's stock, valued at $10,573,082.52. This represents a 0.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 1,596 shares of company stock worth $349,456. 0.81% of the stock is currently owned by insiders.

Hedge Funds Weigh In On AeroVironment

A number of hedge funds have recently made changes to their positions in AVAV. United Services Automobile Association bought a new position in shares of AeroVironment during the first quarter worth about $225,000. Schnieders Capital Management LLC. bought a new position in shares of AeroVironment during the second quarter worth about $285,000. American Century Companies Inc. bought a new position in shares of AeroVironment during the second quarter worth about $633,000. EverSource Wealth Advisors LLC raised its position in shares of AeroVironment by 5,200.0% during the second quarter. EverSource Wealth Advisors LLC now owns 159 shares of the aerospace company's stock worth $45,000 after acquiring an additional 156 shares during the last quarter. Finally, Marshall Wace LLP raised its position in shares of AeroVironment by 0.4% during the second quarter. Marshall Wace LLP now owns 24,188 shares of the aerospace company's stock worth $6,892,000 after acquiring an additional 108 shares during the last quarter. 86.38% of the stock is currently owned by institutional investors.

Key AeroVironment News

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: AVAV is benefiting from renewed investor enthusiasm for U.S. drone stocks after reports said the Trump administration is exploring funding deals, and possibly deeper government support, for domestic drone manufacturers. Drone Stocks Surge As Unusual Machines Jumps 57% On Funding Talks
• Positive Sentiment: The company announced a $20 million U.S. Air Force and Space Force contract, reinforcing demand for its defense technology and helping drive the recent rally. AV Awarded $20 Million Contract to Advance Ceramic Materials Research for the U.S. Air Force and Space Force
• Positive Sentiment: Investors also reacted to another government-backed win: a $43 million contract to integrate AVAV’s PANTHER antenna onto SkyRange platforms, adding to confidence in future contract momentum. AeroVironment (AVAV) Secures $43M Contract to Integrate PANTHER Antenna onto SkyRange Platforms
• Neutral Sentiment: Traders are also watching unusual options activity and strong volume, suggesting elevated speculation around the stock’s move. Traders Purchase Large Volume of AeroVironment Call Options NASDAQ: AVAV
• Negative Sentiment: Multiple law firms announced or promoted securities class-action claims tied to AVAV, creating a legal overhang that could pressure sentiment despite the operational positives. AVAV Investors Have Opportunity to Lead AeroVironment, Inc. Securities Fraud Lawsuit

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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