AeroVironment, Inc. $AVAV Stock: Pinnacle Associates Ltd. Boosts Position

Key Points

• Pinnacle Associates increased its AeroVironment position by 29.6% in the third quarter, adding 43,667 shares to own 191,312 shares valued at approximately $27.2 million. Institutional investors collectively own 86.38% of AVAV.
• AeroVironment exceeded quarterly expectations with $0.59 in adjusted EPS versus $0.22 expected and revenue of $480.49 million, up 5.7% year over year. The company forecast fiscal 2027 EPS of $3.02–$3.34.
• The outlook is mixed: an Australian manufacturing partnership and a Macquarie “Outperform” rating support growth prospects, while Citizens JMP cut its price target to $170 amid budget and election uncertainty. AVAV opened at $117.63, near its one-year low and well below its $408.25 high.

Pinnacle Associates Ltd. boosted its position in AeroVironment, Inc. (NASDAQ:AVAV - Free Report) by 29.6% during the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 191,312 shares of the aerospace company's stock after purchasing an additional 43,667 shares during the period. Pinnacle Associates Ltd. owned about 0.38% of AeroVironment worth $27,208,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also bought and sold shares of AVAV. Diversify Advisory Services LLC raised its stake in shares of AeroVironment by 23.4% in the third quarter. Diversify Advisory Services LLC now owns 16,468 shares of the aerospace company's stock valued at $2,342,000 after buying an additional 3,120 shares during the period. Canal Insurance CO lifted its position in shares of AeroVironment by 14.3% during the 3rd quarter. Canal Insurance CO now owns 80,000 shares of the aerospace company's stock valued at $11,378,000 after buying an additional 10,000 shares during the last quarter. Clark Financial Services Group Inc. BD lifted its position in shares of AeroVironment by 20.3% during the 3rd quarter. Clark Financial Services Group Inc. BD now owns 1,793 shares of the aerospace company's stock valued at $255,000 after buying an additional 302 shares during the last quarter. Kercheville Advisors LLC grew its stake in shares of AeroVironment by 302.8% during the 3rd quarter. Kercheville Advisors LLC now owns 7,150 shares of the aerospace company's stock worth $1,017,000 after acquiring an additional 5,375 shares during the period. Finally, New Wave Wealth Advisors LLC grew its stake in shares of AeroVironment by 13.6% during the 3rd quarter. New Wave Wealth Advisors LLC now owns 6,054 shares of the aerospace company's stock worth $861,000 after acquiring an additional 725 shares during the period. 86.38% of the stock is owned by institutional investors.

Key Headlines Impacting AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Australian manufacturing expansion: AeroVironment partnered with NIOA Australia to explore local production, co-production and sustainment of one-way attack systems. The arrangement could improve AVAV’s access to Australian and broader Indo-Pacific defense markets, while supporting local supply chains and recurring sustainment revenue. AeroVironment Expands Australian Defense Manufacturing Through NIOA
• Positive Sentiment: Favorable sector outlook: Macquarie Research initiated coverage of AeroVironment with an Outperform rating, identifying the company as a beneficiary of a projected multiyear aerospace and defense investment cycle. The firm cited rising sovereign defense spending and demand for autonomous systems, drone warfare and space technologies. Top Aerospace & Defense Stocks According to Macquarie Research
• Neutral Sentiment: Peer-sector activity: AeroVironment shares edged higher alongside Kratos as Red Cat Holdings’ proposed acquisition of Steyr Motors drew attention to drone propulsion and defense technology. The move offered limited company-specific information for AVAV. Red Cat Jumps 8% on Cash Offer for Steyr Motors; AeroVironment and Kratos Edge Higher
• Negative Sentiment: Price-target reduction: Citizens JMP lowered its AVAV target to $170 from $230 while retaining a Market Outperform rating. The cut reflects budget and election uncertainty and may weigh on sentiment, although the revised target still implies substantial upside from recent trading levels. AeroVironment Price Target Lowered at Citizens

AeroVironment Trading Down 0.2%

NASDAQ:AVAV opened at $117.63 on Wednesday. The company has a market cap of $5.98 billion, a P/E ratio of -50.27, a P/E/G ratio of 1.85 and a beta of 1.36. The stock's fifty day moving average price is $149.37 and its two-hundred day moving average price is $164.40. AeroVironment, Inc. has a 1 year low of $116.30 and a 1 year high of $408.25. The company has a debt-to-equity ratio of 0.17, a current ratio of 4.26 and a quick ratio of 3.33.

AeroVironment (NASDAQ:AVAV - Get Free Report) last announced its quarterly earnings results on Wednesday, September 9th. The aerospace company reported $0.59 earnings per share for the quarter, beating the consensus estimate of $0.22 by $0.37. AeroVironment had a positive return on equity of 4.04% and a negative net margin of 5.77%. The company had revenue of $480.49 million during the quarter, compared to analysts' expectations of $451.95 million. During the same period in the previous year, the business earned $0.32 earnings per share. The firm's quarterly revenue was up 5.7% compared to the same quarter last year. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. As a group, analysts expect that AeroVironment, Inc. will post 3.26 EPS for the current year.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on AVAV shares. UBS Group lifted their price objective on AeroVironment from $166.00 to $170.00 and gave the stock a "neutral" rating in a report on Thursday, September 10th. The Goldman Sachs Group set a $285.00 price objective on AeroVironment in a research note on Thursday, September 17th. Piper Sandler dropped their price objective on shares of AeroVironment from $248.00 to $235.00 and set an "overweight" rating on the stock in a report on Thursday, July 9th. Wall Street Zen upgraded shares of AeroVironment from a "sell" rating to a "hold" rating in a research report on Sunday, July 5th. Finally, Royal Bank Of Canada lowered shares of AeroVironment from an "outperform" rating to a "sector perform" rating and cut their target price for the stock from $210.00 to $180.00 in a research report on Thursday, July 9th. Two analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, AeroVironment presently has an average rating of "Moderate Buy" and a consensus price target of $225.80.

Insider Transactions at AeroVironment

In other news, Director Stephen F. Page sold 250 shares of the stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $152.27, for a total value of $38,067.50. Following the sale, the director directly owned 48,253 shares of the company's stock, valued at approximately $7,347,484.31. This represents a 0.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Brian Shackley sold 205 shares of the stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $201.86, for a total transaction of $41,381.30. Following the completion of the sale, 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 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. Insiders have sold a total of 805 shares of company stock valued at $142,671 in the last ninety days. Insiders own 0.79% of the company's stock.

About AeroVironment

AeroVironment, Inc is a defense technology company that develops and supplies uncrewed aircraft systems, loitering munitions, counter-uncrewed-aircraft systems, space systems and related autonomous technologies. Its products are designed for intelligence, surveillance and reconnaissance, precision strike, tactical communications and other defense and security missions.

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

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