AeroVironment (NASDAQ:AVAV) Trading Down 5.8% - Here's What Happened

Key Points

• AeroVironment shares fell 5.8% on Friday, trading as low as $149.33 before closing near $149.51, with volume below normal. The move came after the stock had previously closed at $158.73.
• The stock is facing a legal overhang, as law firms continue highlighting the upcoming July 27 lead-plaintiff deadline in an AVAV securities class action. However, a separate short-interest filing showed zero shares short, adding little new pressure.
• Despite the pullback, AeroVironment recently posted strong quarterly results, beating EPS and revenue expectations, and also landed a new Army contract. Analysts remain broadly constructive overall, with a consensus rating of Moderate Buy and an average price target of $266.68.

Shares of AeroVironment, Inc. (NASDAQ:AVAV - Get Free Report) traded down 5.8% during trading on Friday . The stock traded as low as $149.33 and last traded at $149.51. 1,107,780 shares were traded during mid-day trading, a decline of 34% from the average daily volume of 1,677,850 shares. The stock had previously closed at $158.73.

More AeroVironment News

Here are the key news stories impacting AeroVironment this week:

• Neutral Sentiment: Several law firms reiterated the approaching July 27 lead-plaintiff deadline in the AVAV securities class action, keeping AeroVironment in the news and highlighting ongoing legal overhang. Article Title
• Neutral Sentiment: The company also saw another round of short-interest commentary, but the filing reported zero shares short, so it does not appear to add meaningful new pressure. Article Title
• Positive Sentiment: AeroVironment recently scored a new Army contract, and investors have also been encouraged by strong defense-program momentum, which supports the long-term revenue outlook even as the stock trades lower near term. Article Title

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on the company. Stifel Nicolaus cut their price objective on AeroVironment from $315.00 to $220.00 and set a "buy" rating for the company in a research report on Tuesday, June 30th. Wedbush initiated coverage on AeroVironment in a report on Tuesday, June 30th. They issued an "outperform" rating and a $250.00 price target for the company. William Blair restated an "outperform" rating on shares of AeroVironment in a research report on Wednesday, July 15th. UBS Group reaffirmed a "buy" rating on shares of AeroVironment in a research note on Thursday, July 9th. Finally, Piper Sandler decreased their price objective on AeroVironment from $248.00 to $235.00 and set an "overweight" rating on the stock in a research note on Thursday, July 9th. Two analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $266.68.

AeroVironment Trading Down 5.8%

The firm has a market capitalization of $7.57 billion, a price-to-earnings ratio of -40.63, a P/E/G ratio of 5.11 and a beta of 1.39. The company has a debt-to-equity ratio of 0.17, a quick ratio of 3.59 and a current ratio of 4.30. The business has a fifty day moving average price of $166.95 and a 200 day moving average price of $213.90.

AeroVironment (NASDAQ:AVAV - Get Free Report) last issued its earnings results on Monday, June 29th. The aerospace company reported $1.84 earnings per share for the quarter, beating analysts' consensus estimates of $1.47 by $0.37. AeroVironment had a positive return on equity of 3.71% and a negative net margin of 9.00%.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 firm earned $1.61 earnings per share. The firm's revenue for the quarter was up 133.3% compared to the same quarter last year. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. As a group, equities analysts forecast that AeroVironment, Inc. will post 3.26 earnings per share for the current year.

Insider Activity at AeroVironment

In other 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 value of $43,602.50. Following the transaction, the director directly owned 49,001 shares in the company, valued at $8,546,264.41. This trade represents a 0.51% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.81% of the stock is currently owned by company insiders.

Institutional Trading of AeroVironment

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Tema ETFs LLC lifted its position in AeroVironment by 140.0% during the second quarter. Tema ETFs LLC now owns 648 shares of the aerospace company's stock valued at $107,000 after buying an additional 378 shares in the last quarter. Canvas Wealth Advisors LLC increased its position in shares of AeroVironment by 47.4% in the second quarter. Canvas Wealth Advisors LLC now owns 13,392 shares of the aerospace company's stock worth $2,211,000 after acquiring an additional 4,309 shares in the last quarter. Vista Investment Partners LLC raised its stake in shares of AeroVironment by 22.3% in the 2nd quarter. Vista Investment Partners LLC now owns 16,451 shares of the aerospace company's stock valued at $2,716,000 after acquiring an additional 2,996 shares during the period. Tactive Advisors LLC purchased a new position in shares of AeroVironment in the 2nd quarter valued at $260,000. Finally, Hennion & Walsh Asset Management Inc. lifted its holdings in shares of AeroVironment by 25.7% during the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 18,115 shares of the aerospace company's stock valued at $2,990,000 after acquiring an additional 3,698 shares in the last quarter. Institutional investors and hedge funds 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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