AeroVironment, Inc. (NASDAQ:AVAV) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus: Nineteen of 24 analysts rate AeroVironment a buy, with two strong-buy, two hold, and one sell rating. The average 12-month price target is approximately $255.47.
• Quarterly results exceeded expectations: Fiscal first-quarter revenue reached $480.5 million and non-GAAP EPS was $0.59, beating estimates. Bookings of $700 million and a record $1.5 billion funded backlog point to strong defense demand.
• Shares remain under pressure despite operating momentum: The stock opened at $140.80, near its 52-week low, while the company reported a GAAP net loss, maintained full-year guidance near analyst expectations, and faced insider selling and a board-related investigation.

Shares of AeroVironment, Inc. (NASDAQ:AVAV - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the twenty-four research firms that are currently covering the company, MarketBeat.com reports. One investment analyst has rated the stock with a sell rating, two have given a hold rating, nineteen have given a buy rating and two have assigned a strong buy rating to the company. The average 1-year price objective among brokerages that have updated their coverage on the stock in the last year is $255.4737.

A number of analysts have recently weighed in on AVAV shares. Jefferies Financial Group lowered 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. KeyCorp restated an "overweight" rating on shares of AeroVironment in a report on Tuesday, July 28th. Raymond James Financial upgraded shares of AeroVironment from a "market perform" rating to an "outperform" rating and set a $210.00 target price for the company in a research note on Thursday, July 16th. William Blair reissued an "outperform" rating on shares of AeroVironment in a research report on Wednesday, July 15th. Finally, Bank of America cut their price target on shares of AeroVironment from $450.00 to $225.00 in a research note on Thursday, July 16th.

Trending Headlines about AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: AeroVironment reported fiscal first-quarter revenue of $480.5 million, up 6% year over year and above estimates by approximately $24 million. Non-GAAP EPS of $0.59 also exceeded the $0.22 consensus forecast and increased from $0.32 a year earlier. AeroVironment Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: Demand indicators were strong: bookings reached $700 million, the book-to-bill ratio was 1.4, and funded backlog rose 37% year over year to a record $1.5 billion. Management also cited record first-quarter revenue amid continued defense demand. AeroVironment Announces Fiscal 2027 First Quarter Results
• Positive Sentiment: AeroVironment reportedly secured its first international order for the LOCUST counter-drone laser system, potentially supporting its expansion in the growing counter-UAS market. AeroVironment Nabs First International Order for LOCUST Counter-Drone Laser System
• Neutral Sentiment: Fiscal 2027 revenue guidance of approximately $2.1 billion to $2.2 billion and EPS guidance of $3.02 to $3.34 were maintained or updated around analyst expectations. That leaves limited room for an upside surprise despite the quarterly beat.
• Negative Sentiment: The company remained unprofitable under GAAP, reporting a $5.1 million net loss and a negative net margin. Investors may also be concerned that full-year revenue guidance does not clearly exceed the roughly $2.2 billion consensus estimate.
• Negative Sentiment: Shares faced broader risk-off selling across drone stocks ahead of the report, while a law firm announced an investigation into AeroVironment’s board for potential fiduciary-duty breaches. Reported insider activity has also been exclusively selling in recent months, adding to sentiment pressure. Berger Montague Investigates AeroVironment Board

Insider Buying and Selling at AeroVironment

In other news, CAO Brian Shackley sold 205 shares of the stock in a transaction on Friday, August 14th. The shares were sold at an average price of $201.86, for a total value of $41,381.30. Following the sale, the chief accounting officer owned 7,888 shares in the company, valued at $1,592,271.68. This represents a 2.53% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen Page sold 250 shares of the firm's stock in a transaction on Monday, August 17th. The stock was sold at an average price of $191.98, for a total transaction of $47,995.00. Following the transaction, the director directly owned 48,503 shares of the company's stock, valued at approximately $9,311,605.94. This trade represents a 0.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 705 shares of company stock worth $132,979 over the last ninety days. Insiders own 0.79% of the company's stock.

Institutional Investors Weigh In On AeroVironment

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Sunbelt Securities Inc. acquired a new position in shares of AeroVironment in the 1st quarter valued at about $25,000. Hilton Head Capital Partners LLC acquired a new stake in AeroVironment during the fourth quarter worth about $26,000. Whittier Trust Co. of Nevada Inc. acquired a new stake in AeroVironment during the first quarter worth about $28,000. Hazlett Burt & Watson Inc. grew its holdings in AeroVironment by 90.0% during the fourth quarter. Hazlett Burt & Watson Inc. now owns 133 shares of the aerospace company's stock worth $32,000 after acquiring an additional 63 shares during the period. Finally, Toth Financial Advisory Corp purchased a new position in AeroVironment during the second quarter valued at approximately $33,000. 86.38% of the stock is owned by institutional investors and hedge funds.

AeroVironment Trading Down 5.4%

Shares of NASDAQ AVAV opened at $140.80 on Thursday. AeroVironment has a twelve month low of $135.20 and a twelve month high of $417.86. The firm has a market cap of $7.16 billion, a PE ratio of -38.26, a price-to-earnings-growth ratio of 5.15 and a beta of 1.41. The business has a fifty day simple moving average of $159.17 and a two-hundred day simple moving average of $179.83. 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 (NASDAQ:AVAV - Get Free Report) last posted its quarterly earnings results on Wednesday, September 9th. The aerospace company reported $0.59 EPS for the quarter, beating the consensus estimate of $0.22 by $0.37. The business had revenue of $480.49 million during the quarter, compared to analyst estimates of $451.95 million. AeroVironment had a negative net margin of 9.00% and a positive return on equity of 3.71%. The company's quarterly revenue was up 5.7% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.32 EPS. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. Analysts expect that AeroVironment will post 3.2 earnings per share for the current fiscal 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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