AeroVironment (NASDAQ:AVAV) Trading Down 2.6% After Analyst Downgrade

Key Points

• AeroVironment shares fell 2.6% after Citizens JMP cut its price target from $350 to $230, even though the firm kept a market outperform rating.
• Other analysts also turned more cautious on valuation, with RBC downgrading the stock to Sector Perform and several firms, including Canaccord and Jefferies, lowering their price targets.
• Despite the pullback, the company recently posted better-than-expected quarterly results, with EPS and revenue both beating estimates and revenue jumping 133.3% year over year.

AeroVironment, Inc. (NASDAQ:AVAV - Get Free Report) shares traded down 2.6% during trading on Friday after Citizens Jmp lowered their price target on the stock from $350.00 to $230.00. Citizens Jmp currently has a market outperform rating on the stock. AeroVironment traded as low as $143.01 and last traded at $144.58. 1,333,867 shares were traded during mid-day trading, a decline of 21% from the average daily volume of 1,695,553 shares. The stock had previously closed at $148.40.

AVAV has been the topic of a number of other research reports. Needham & Company LLC reiterated a "buy" rating and issued a $225.00 price objective on shares of AeroVironment in a research report on Thursday. Clear Str upgraded AeroVironment to a "strong-buy" rating in a research note on Wednesday, April 29th. Canaccord Genuity Group dropped their price target on AeroVironment from $280.00 to $240.00 and set a "buy" rating for the company in a research report on Friday. Jefferies Financial Group cut their price objective on AeroVironment from $305.00 to $229.00 and set a "buy" rating for the company in a report on Wednesday, July 1st. Finally, Zacks Research upgraded shares of AeroVironment from a "strong sell" rating to a "hold" rating in a research report on Monday, May 4th. Two investment 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 stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $266.68.

Insider Buying and Selling

In other AeroVironment news, Director Stephen F. Page sold 250 shares of the firm's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $174.41, for a total transaction of $43,602.50. Following the sale, the director owned 49,001 shares in the company, valued at $8,546,264.41. This trade represents a 0.51% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 750 shares of company stock valued at $133,502 over the last quarter. 0.81% of the stock is owned by corporate insiders.

Key Headlines Impacting AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Needham reaffirmed a Buy rating, and BTIG also reiterated Buy, signaling that some analysts still see meaningful upside despite the selloff. Analyst rating updates
• Positive Sentiment: The company said it remains positioned for long-term growth, highlighting its defense technology strategy and FY2030 targets at Investor Day. Investor Day release
• Neutral Sentiment: Several law firms issued deadline reminders for a July 27 lead-plaintiff date in a securities class action tied to the June 2025–March 2026 period. These notices increase legal noise but do not by themselves prove financial damage. Securities lawsuit deadline
• Neutral Sentiment: Recent commentary noted strong Q4 revenue, healthy backlog, and a major Army contract, but also said the stock fell sharply after investors and analysts questioned whether aggressive 2030 targets are realistic. MarketBeat article
• Negative Sentiment: RBC downgraded AVAV to Sector Perform and cut its price target to $180, citing concerns about ambitious growth assumptions. RBC downgrade
• Negative Sentiment: Citizens JMP and Canaccord also lowered price targets, reinforcing the market’s view that near-term upside may be limited even though both firms kept constructive ratings. Price target cuts

Hedge Funds Weigh In On AeroVironment

A number of large investors have recently modified their holdings of AVAV. United Services Automobile Association bought a new stake in shares of AeroVironment in the 1st quarter valued at about $225,000. Schnieders Capital Management LLC. bought a new position in AeroVironment during the 2nd quarter worth approximately $285,000. American Century Companies Inc. purchased a new position in AeroVironment in the 2nd quarter worth approximately $633,000. EverSource Wealth Advisors LLC increased its stake in AeroVironment by 5,200.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 159 shares of the aerospace company's stock worth $45,000 after purchasing an additional 156 shares during the period. Finally, Marshall Wace LLP lifted its position in AeroVironment by 0.4% in the second quarter. Marshall Wace LLP now owns 24,188 shares of the aerospace company's stock valued at $6,892,000 after purchasing an additional 108 shares during the last quarter. 86.38% of the stock is owned by hedge funds and other institutional investors.

AeroVironment Stock Down 2.6%

The stock has a market cap of $7.32 billion, a P/E ratio of -39.29, a P/E/G ratio of 2.38 and a beta of 1.39. The company has a quick ratio of 3.59, a current ratio of 4.30 and a debt-to-equity ratio of 0.17. The company has a 50-day simple moving average of $172.04 and a two-hundred day simple moving average of $221.39.

AeroVironment (NASDAQ:AVAV - Get Free Report) last issued its earnings results on Monday, June 29th. The aerospace company reported $1.84 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.47 by $0.37. AeroVironment had a negative net margin of 9.00% and a positive return on equity of 3.71%. The firm had revenue of $641.62 million for the quarter, compared to analysts' expectations of $555.97 million. During the same quarter last year, the business earned $1.61 earnings per share. The business's revenue was up 133.3% on a year-over-year basis. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. On average, equities analysts forecast that AeroVironment, Inc. will post 3.39 EPS for the current year.

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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