AeroVironment (NASDAQ:AVAV) Trading Down 7.5% on Insider Selling

Key Points

• AeroVironment shares fell 7.5% to $159.79 after two insiders sold stock under pre-arranged Rule 10b5-1 trading plans. The sales totaled about $89,000, and both executives retained substantial holdings.
• Analyst sentiment remains broadly positive, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $266.68, despite recent target reductions from some firms.
• The company reported quarterly EPS of $1.84 versus the $1.47 consensus and revenue of $641.62 million, up 133.3% year over year. Institutional investors own 86.38% of the shares, including significant new positions from BlackRock and other major firms.

AeroVironment, Inc. (NASDAQ:AVAV - Get Free Report)'s stock price traded down 7.5% on Thursday after an insider sold shares in the company. The company traded as low as $155.81 and last traded at $159.79. Approximately 1,612,640 shares traded hands during trading, a decline of 0% from the average daily volume of 1,619,067 shares. The stock had previously closed at $172.74.

Specifically, Director Stephen F. Page sold 250 shares of the firm's stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $191.98, for a total value of $47,995.00. Following the sale, the director owned 48,503 shares in the company, valued at approximately $9,311,605.94. This trade represents a 0.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Brian Charles Shackley sold 205 shares of the firm's stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $201.86, for a total transaction of $41,381.30. Following the transaction, the chief accounting officer directly owned 7,888 shares in the company, valued at approximately $1,592,271.68. The trade was a 2.53% 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.

Analyst Ratings Changes

Several research firms have issued reports on AVAV. Wedbush began coverage on AeroVironment in a report on Tuesday, June 30th. They issued an "outperform" rating and a $250.00 price target on the stock. Wall Street Zen upgraded shares of AeroVironment from a "sell" rating to a "hold" rating in a report on Sunday, July 5th. Royal Bank Of Canada cut AeroVironment from an "outperform" rating to a "sector perform" rating and reduced their price objective for the company from $210.00 to $180.00 in a research report on Thursday, July 9th. Piper Sandler decreased their target price on shares of AeroVironment from $248.00 to $235.00 and set an "overweight" rating for the company in a research report on Thursday, July 9th. Finally, BTIG Research reiterated a "buy" rating and set a $205.00 price target on shares of AeroVironment in a research note on Thursday, July 9th. Two equities research 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 issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $266.68.

AeroVironment Stock Performance

The company has a market capitalization of $8.12 billion, a price-to-earnings ratio of -43.42, a price-to-earnings-growth ratio of 5.92 and a beta of 1.41. The company has a debt-to-equity ratio of 0.17, a current ratio of 4.30 and a quick ratio of 3.59. The stock has a 50 day moving average price of $162.49 and a two-hundred day moving average price of $191.61.

AeroVironment (NASDAQ:AVAV - Get Free Report) last issued its quarterly earnings results on Monday, June 29th. The aerospace company reported $1.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.47 by $0.37. The business had revenue of $641.62 million for the quarter, compared to analyst estimates of $555.97 million. AeroVironment had a positive return on equity of 3.71% and a negative net margin of 9.00%.The firm's revenue for the quarter was up 133.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.61 earnings per share. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. On average, analysts predict that AeroVironment, Inc. will post 3.26 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. BlackRock Inc. acquired a new stake in shares of AeroVironment in the 2nd quarter valued at $574,566,000. American Capital Management Inc. bought a new stake in shares of AeroVironment during the second quarter worth about $69,745,000. Bank of America Corp DE acquired a new position in AeroVironment in the 2nd quarter valued at approximately $67,549,000. Norges Bank acquired a new stake in AeroVironment in the fourth quarter valued at $94,655,000. Finally, Korea Investment CORP acquired a new stake in shares of AeroVironment in the second quarter valued at about $54,901,000. 86.38% of the stock is currently owned by institutional investors.

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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