AeroVironment (NASDAQ:AVAV) Coverage Initiated by Analysts at Rothschild & Co Redburn

Key Points

• Rothschild & Co. Redburn initiated coverage of AeroVironment with a Hold rating and a $165 price target, implying roughly 18.7% upside from the reported share price. The broader analyst consensus remains Moderate Buy, with an average target of $228.37.
• AeroVironment reported quarterly EPS of $0.59 versus the $0.22 consensus estimate, while revenue rose 5.7% year over year to $480.49 million. Strong Switchblade demand is supported by approximately $1.5 billion in funded backlog and $1.4 billion in unfunded backlog.
• Shares fell 3.2% to $138.98 and remain well below their 12-month high of $417.86, reflecting broader pressure on drone stocks and concerns about valuations, execution and profitability. Institutional investors own 86.38% of the company, while recent insider transactions consisted of sales under pre-arranged trading plans.

Equities research analysts at Rothschild & Co Redburn assumed coverage on shares of AeroVironment (NASDAQ:AVAV - Get Free Report) in a research note issued on Tuesday, MarketBeat.com reports. The brokerage set a "hold" rating and a $165.00 price target on the aerospace company's stock. Rothschild & Co Redburn's target price points to a potential upside of 18.72% from the stock's current price.

A number of other research firms have also recently commented on AVAV. Weiss Ratings cut shares of AeroVironment from a "sell (d)" rating to a "sell (d-)" rating in a research report on Friday, September 18th. KeyCorp reaffirmed an "overweight" rating on shares of AeroVironment in a research note on Tuesday, July 28th. UBS Group lifted their price target on AeroVironment from $166.00 to $170.00 and gave the company a "neutral" rating in a research note on Thursday, September 10th. Bank of America cut their target price on AeroVironment from $225.00 to $185.00 and set a "buy" rating on the stock in a research note on Friday, September 11th. Finally, Needham & Company LLC reissued a "buy" rating and issued a $225.00 price objective on shares of AeroVironment in a research report on Thursday, September 10th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $228.37.

AeroVironment Trading Down 3.2%

AVAV stock traded down $4.56 during trading on Tuesday, hitting $138.98. The company had a trading volume of 1,881,114 shares, compared to its average volume of 1,671,590. The firm has a 50-day moving average price of $157.45 and a 200-day moving average price of $169.05. The stock has a market cap of $7.06 billion, a price-to-earnings ratio of -59.39, a PEG ratio of 2.20 and a beta of 1.36. AeroVironment has a 12 month low of $134.25 and a 12 month high of $417.86. The company has a quick ratio of 3.33, a current ratio of 4.26 and a debt-to-equity ratio of 0.17.

AeroVironment (NASDAQ:AVAV - Get Free Report) last issued its quarterly earnings results on Wednesday, September 9th. The aerospace company reported $0.59 EPS for the quarter, topping the consensus estimate of $0.22 by $0.37. AeroVironment had a negative net margin of 5.77% and a positive return on equity of 4.04%. The company had revenue of $480.49 million during the quarter, compared to analysts' expectations of $451.95 million. During the same quarter in the previous year, the company earned $0.32 EPS. AeroVironment's revenue was up 5.7% on a year-over-year basis. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. As a group, analysts predict that AeroVironment will post 3.25 earnings per share for the current year.

Insider Activity at AeroVironment

In other AeroVironment news, CAO Brian Shackley sold 205 shares of AeroVironment stock in a transaction on Friday, August 14th. The stock was sold at an average price of $201.86, for a total value of $41,381.30. Following the completion of the transaction, the chief accounting officer directly owned 7,888 shares of the company's stock, valued at $1,592,271.68. The trade was a 2.53% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen Page sold 250 shares of AeroVironment stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $152.27, for a total transaction of $38,067.50. Following the completion of the transaction, the director directly owned 48,253 shares in the company, valued at $7,347,484.31. This trade represents a 0.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 805 shares of company stock valued at $142,671. 0.79% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of AVAV. BlackRock Inc. acquired a new position in shares of AeroVironment in the 2nd quarter worth approximately $574,566,000. Heard Capital LLC grew its holdings in AeroVironment by 48.4% in the fourth quarter. Heard Capital LLC now owns 722,150 shares of the aerospace company's stock worth $174,681,000 after purchasing an additional 235,685 shares during the period. Stephens Investment Management Group LLC increased its stake in AeroVironment by 18.8% in the first quarter. Stephens Investment Management Group LLC now owns 490,426 shares of the aerospace company's stock valued at $89,772,000 after purchasing an additional 77,619 shares in the last quarter. Congress Asset Management Co. grew its stake in shares of AeroVironment by 20.1% in the 3rd quarter. Congress Asset Management Co. now owns 595,134 shares of the aerospace company's stock valued at $84,640,000 after buying an additional 99,494 shares during the period. Finally, American Capital Management Inc. acquired a new position in AeroVironment during the 2nd quarter worth approximately $69,745,000. 86.38% of the stock is owned by institutional investors.

More AeroVironment News

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: BTIG maintained a Buy rating and a $205 price target, citing AeroVironment’s strength in directed-energy and counter-drone systems. AeroVironment Maintained at Buy
• Positive Sentiment: Demand for the Switchblade drone family remains robust, with AeroVironment reporting approximately $1.5 billion in funded backlog and another $1.4 billion in unfunded backlog at the end of fiscal 2027’s first quarter. This supports future revenue visibility, although investors are still waiting for stronger profitability. Should Investors Buy the Dip in AeroVironment
• Neutral Sentiment: Rothschild & Co. Redburn upgraded AeroVironment to Hold. The change may reduce downside pressure relative to a more bearish rating, but it does not represent a bullish endorsement or establish a higher valuation target. AeroVironment Stock Bumped Up to Hold
• Negative Sentiment: AeroVironment has fallen sharply this year, with the company’s restatement viewed as a key factor. Analysts also note that peer declines despite having no restatements suggest broader concerns about drone-stock valuations, execution, and defense-sector sentiment. AeroVironment Is Now Down 43% This Year
• Negative Sentiment: A simultaneous selloff in AeroVironment, Ondas, and Red Cat indicates sector-wide pressure rather than company-specific news. AeroVironment’s stock decreased even as a peer announced $165 million in new orders, highlighting weak investor appetite for drone equities. Ondas Falls Despite New Orders

About AeroVironment

AeroVironment, Inc is a defense technology company that develops and supplies autonomous systems, uncrewed aircraft, loitering munitions and counter-uncrewed-aircraft systems. Its portfolio includes small unmanned aircraft systems such as Raven, Puma and Wasp, as well as larger platforms including JUMP 20 and Quantix Recon.

The company is also known for its Switchblade family of loitering munitions, which combine surveillance, target identification and precision strike capabilities. AeroVironment provides related ground control systems, sensors, software, communications equipment, training and support services for intelligence, surveillance and reconnaissance missions.

Founded in 1971 by aerospace engineer Paul B.