AeroVironment, Inc. $AVAV Holdings Increased by Hsbc Holdings PLC

Key Points

• Institutional ownership increased significantly: HSBC raised its AeroVironment stake by 60.1% to 22,294 shares, while several major institutions initiated positions. Institutional investors now own 86.38% of the company.
• Quarterly results beat expectations: Revenue rose 5.7% year over year to $480.5 million, while EPS of $0.59 exceeded the $0.22 consensus estimate. Funded backlog also climbed 37% to a record $1.5 billion, supporting future growth.
• Analysts remain broadly bullish but risks persist: AeroVironment has a consensus “Moderate Buy” rating and an average price target of $249.89, although some analysts recently lowered targets. The company continues to face valuation, profitability and execution concerns despite maintaining fiscal 2027 guidance.

Hsbc Holdings PLC lifted its stake in AeroVironment, Inc. (NASDAQ:AVAV - Free Report) by 60.1% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 22,294 shares of the aerospace company's stock after acquiring an additional 8,369 shares during the period. Hsbc Holdings PLC's holdings in AeroVironment were worth $3,615,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors and hedge funds have also made changes to their positions in the stock. BlackRock Inc. acquired a new stake in shares of AeroVironment in the second quarter valued at $574,566,000. American Capital Management Inc. acquired a new stake in AeroVironment during the second quarter valued at approximately $69,745,000. Bank of America Corp DE acquired a new stake in AeroVironment during the second quarter valued at approximately $67,549,000. Norges Bank bought a new stake in AeroVironment during the fourth quarter worth approximately $94,655,000. Finally, Korea Investment CORP bought a new stake in AeroVironment during the second quarter worth approximately $54,901,000. 86.38% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several research analysts have issued reports on the company. Wall Street Zen raised AeroVironment from a "sell" rating to a "hold" rating in a report on Sunday, July 5th. Royal Bank Of Canada lowered AeroVironment from an "outperform" rating to a "sector perform" rating and reduced their price objective for the stock from $210.00 to $180.00 in a research note on Thursday, July 9th. Piper Sandler decreased their target price on AeroVironment from $248.00 to $235.00 and set an "overweight" rating on the stock in a report on Thursday, July 9th. KeyCorp reaffirmed an "overweight" rating on shares of AeroVironment in a research report on Tuesday, July 28th. Finally, Citigroup reaffirmed a "market outperform" rating on shares of AeroVironment in a report on Thursday. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, AeroVironment presently has a consensus rating of "Moderate Buy" and an average target price of $249.89.

AeroVironment Trading Up 4.5%

NASDAQ AVAV opened at $147.07 on Friday. AeroVironment, Inc. has a twelve month low of $135.20 and a twelve month high of $417.86. 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 stock has a market cap of $7.47 billion, a price-to-earnings ratio of -62.85, a PEG ratio of 4.87 and a beta of 1.41. The firm's 50 day moving average price is $158.30 and its two-hundred day moving average price is $179.00.

AeroVironment (NASDAQ:AVAV - Get Free Report) last announced its earnings results on Wednesday, September 9th. The aerospace company reported $0.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.22 by $0.37. The company had revenue of $480.49 million for the quarter, compared to the consensus estimate of $451.95 million. AeroVironment had a negative net margin of 5.77% and a positive return on equity of 4.06%. The company's revenue was up 5.7% on a year-over-year basis. During the same period in the previous year, the business earned $0.32 EPS. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. Equities analysts anticipate that AeroVironment, Inc. will post 3.2 EPS for the current year.

AeroVironment News Roundup

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Quarterly earnings beat expectations. Fiscal Q1 2027 revenue reached a record $480.5 million, up 5.7% year over year and above the roughly $452 million consensus. Adjusted EPS of $0.59 substantially exceeded the $0.22 estimate and improved from $0.32 a year earlier. AeroVironment Announces Fiscal 2027 First Quarter Results
• Positive Sentiment: Backlog and bookings support future revenue. Funded backlog rose 37% year over year to a record $1.5 billion, while quarterly bookings totaled approximately $700 million and produced a 1.4 book-to-bill ratio. Management said fiscal 2027 is off to a strong start and expects a stronger second half as capacity investments ramp. AeroVironment Q1 2027 Earnings Call Transcript
• Positive Sentiment: International LOCUST order expands the growth opportunity. AeroVironment announced its first international commercial purchase of the LOCUST directed-energy counter-drone system, valued at more than $50 million. The order reinforces investor optimism that laser weapons could become a significant franchise alongside the company’s drone businesses. AV Secures First International Order for LOCUST Systems
• Positive Sentiment: Analysts raised their targets. JPMorgan increased its target to $210 and maintained an Overweight rating, while Needham, BTIG and Citizens JMP reiterated bullish ratings with targets ranging from $205 to $230.
• Neutral Sentiment: Full-year guidance was maintained. Fiscal 2027 revenue guidance remains approximately $2.1 billion to $2.2 billion, with EPS guidance of $3.02 to $3.34. This supports stability but does not represent a new outlook increase.
• Negative Sentiment: Growth and profitability concerns persist. Critics noted that revenue growth is moderating, the company still posted a GAAP net loss, and full-year revenue guidance is slightly below consensus. High valuation and execution risks could limit the recovery if the expected second-half ramp disappoints. Why AeroVironment's Latest Report Is a Red Flag

Insider Buying and Selling at AeroVironment

In other AeroVironment news, Director Stephen 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 transaction of $43,602.50. Following the completion of the sale, the director directly owned 49,001 shares in the company, valued at approximately $8,546,264.41. This trade represents a 0.51% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Brian Shackley sold 205 shares of AeroVironment stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $201.86, for a total value 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. This trade represents 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. Insiders have sold 705 shares of company stock worth $132,979 over the last three months. 0.79% of the stock is owned by insiders.

AeroVironment Company Profile

AeroVironment, Inc is a defense technology company that develops and produces unmanned aircraft systems, loitering munitions, counter-unmanned aircraft systems and related robotic technologies. Its products are designed for intelligence, surveillance and reconnaissance, precision strike, force protection and tactical communications applications.

The company's portfolio includes the Raven, Puma and Wasp small unmanned aircraft systems; the JUMP 20 vertical takeoff and landing aircraft; and the Switchblade family of loitering munitions.

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