AeroVironment's (AVAV) Outperform Rating Reaffirmed at Royal Bank Of Canada

Key Points

• Royal Bank of Canada reaffirmed its outperform rating on AeroVironment and kept a $210 price target, implying about 18.75% upside from the prior close.
• AeroVironment recently posted strong quarterly results, with EPS of $1.84 and revenue of $641.6 million, both ahead of analyst expectations and up sharply year over year.
• Wall Street remains generally constructive, with a consensus Moderate Buy and an average price target of $277.37, though the stock faces some caution from mixed analyst moves and recent volatility.

AeroVironment (NASDAQ:AVAV - Get Free Report)'s stock had its "outperform" rating reissued by stock analysts at Royal Bank Of Canada in a research report issued to clients and investors on Tuesday,Benzinga reports. They currently have a $210.00 price target on the aerospace company's stock. Royal Bank Of Canada's price objective suggests a potential upside of 18.75% from the company's previous close.

A number of other equities analysts have also issued reports on AVAV. Wall Street Zen upgraded shares of AeroVironment from a "sell" rating to a "hold" rating in a research report on Sunday. Clear Str raised AeroVironment to a "strong-buy" rating in a research note on Wednesday, April 29th. Jefferies Financial Group decreased their price objective on AeroVironment from $305.00 to $229.00 and set a "buy" rating for the company in a research report on Wednesday, July 1st. Needham & Company LLC cut their price target on shares of AeroVironment from $400.00 to $225.00 and set a "buy" rating on the stock in a research note on Tuesday, June 30th. Finally, Wolfe Research lowered AeroVironment to a "buy" rating in a research report on Tuesday, June 30th. Two 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 company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $277.37.

AeroVironment Stock Performance

AeroVironment stock opened at $176.84 on Tuesday. The stock has a 50-day simple moving average of $174.35 and a 200 day simple moving average of $223.03. The company has a quick ratio of 3.59, a current ratio of 4.30 and a debt-to-equity ratio of 0.17. AeroVironment has a 12-month low of $135.20 and a 12-month high of $417.86. The stock has a market capitalization of $8.95 billion, a price-to-earnings ratio of -48.05, a P/E/G ratio of 2.86 and a beta of 1.39.

AeroVironment (NASDAQ:AVAV - Get Free Report) last issued its quarterly earnings data on Monday, June 29th. The aerospace company reported $1.84 EPS for the quarter, topping analysts' consensus estimates 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 analyst estimates of $555.97 million. During the same quarter in the prior year, the firm earned $1.61 EPS. The company'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, research analysts anticipate that AeroVironment will post 3.43 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Stephen F. Page sold 250 shares of the stock in a transaction on Monday, June 15th. The stock was sold at an average price of $174.41, for a total value of $43,602.50. Following the completion of the transaction, the director directly owned 49,001 shares in the company, valued at approximately $8,546,264.41. This represents a 0.51% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 750 shares of company stock worth $133,502 in the last three months. 0.81% of the stock is currently owned by corporate insiders.

Institutional Trading of AeroVironment

Hedge funds and other institutional investors have recently made changes to their positions in the company. Groupama Asset Managment bought a new position in shares of AeroVironment during the third quarter worth about $314,890,000. Norges Bank acquired a new position in shares of AeroVironment in the 4th quarter valued at about $94,655,000. CIBC Private Wealth Group LLC boosted its position in shares of AeroVironment by 24,798.7% during the 3rd 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 in the last quarter. Swedbank AB grew its stake in AeroVironment by 22,773.4% during the fourth quarter. Swedbank AB now owns 261,214 shares of the aerospace company's stock worth $63,185,000 after purchasing an additional 260,072 shares during the period. Finally, Marshall Wace LLP grew its stake in AeroVironment by 4,770.1% during the fourth quarter. Marshall Wace LLP now owns 260,207 shares of the aerospace company's stock worth $62,941,000 after purchasing an additional 254,864 shares during the period. 86.38% of the stock is currently owned by institutional investors.

AeroVironment News Roundup

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: AeroVironment won major new defense business, including a three-year, $500 million IDIQ contract for the JIATF-401 Domestic Shield Program and an $80.5 million Titan MS award, which supports the company’s long-term revenue outlook. Article: AV Awarded $500 million IDIQ for Support of JIATF-401 Domestic Shield Program
• Positive Sentiment: Recent earnings were strong, with fiscal Q4 revenue of $641.6 million and adjusted EPS of $1.84, reinforcing the company’s operational momentum. Article: AeroVironment Posted Solid Earnings and the Stock Reacted Sharply Higher. If You Can Tolerate Risk, Buy Here.
• Neutral Sentiment: Wall Street commentary remains constructive overall, with several buy/overweight ratings and a median price target around $229, suggesting analysts still see upside despite the recent volatility. Article: AeroVironment Slides as Investors Weigh Recent Rally Against Softer FY2027 Profit Outlook
• Negative Sentiment: Investor sentiment is being hurt by the securities class action and related investigations, which allege AeroVironment misled investors about the SCAR program and helped trigger a sharp share-price drop. Article: AVAV Investment Deadline: AeroVironment Securities Fraud Class Action Focuses on SCAR Contract Cancellation
• Negative Sentiment: The stock also faces near-term caution after a strong rally, with traders questioning FY2027 profit guidance, integration risk from the BlueHalo deal, and prior accounting-restatement concerns. Article: AeroVironment Slides as Investors Weigh Recent Rally Against Softer FY2027 Profit Outlook

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.