BlackRock Inc. Invests $574.57 Million in AeroVironment, Inc. $AVAV

Key Points

• BlackRock purchased 3.48 million AeroVironment shares worth approximately $574.6 million, giving it a 6.88% stake. Institutional investors collectively own 86.38% of the company.
• AeroVironment reported strong quarterly growth, with revenue up 133.3% year over year to $641.6 million and EPS of $1.84, beating estimates. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $266.68.
• Despite favorable drone-market catalysts and expansion initiatives, the stock faces risks from demanding valuation, continued losses, and shareholder-law-firm investigations; recent insider sales were small and conducted under pre-arranged trading plans.

BlackRock Inc. purchased a new stake in shares of AeroVironment, Inc. (NASDAQ:AVAV - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm purchased 3,480,740 shares of the aerospace company's stock, valued at approximately $574,566,000. BlackRock Inc. owned approximately 6.88% of AeroVironment at the end of the most recent quarter.

Several other institutional investors and hedge funds have also modified their holdings of AVAV. Norges Bank acquired a new position in AeroVironment during the fourth quarter worth $94,655,000. Swedbank AB raised its holdings in AeroVironment by 22,773.4% during the fourth quarter. Swedbank AB now owns 261,214 shares of the aerospace company's stock valued at $63,185,000 after buying an additional 260,072 shares in the last quarter. Marshall Wace LLP raised its holdings in AeroVironment by 4,770.1% during the fourth quarter. Marshall Wace LLP now owns 260,207 shares of the aerospace company's stock valued at $62,941,000 after buying an additional 254,864 shares in the last quarter. Heard Capital LLC lifted its position in shares of 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 buying an additional 235,685 shares during the last quarter. Finally, Franklin Resources Inc. lifted its position in shares of AeroVironment by 3,880.9% in the third quarter. Franklin Resources Inc. now owns 206,607 shares of the aerospace company's stock worth $65,058,000 after buying an additional 201,417 shares during the last quarter. Institutional investors and hedge funds own 86.38% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on AVAV shares. Citizens Jmp lowered their price objective on AeroVironment from $350.00 to $230.00 and set a "market outperform" rating on the stock in a report on Friday, July 10th. KeyCorp restated an "overweight" rating on shares of AeroVironment in a report on Tuesday, July 28th. Citigroup reaffirmed a "market outperform" rating on shares of AeroVironment in a research report on Tuesday, July 28th. Jefferies Financial Group decreased their target price on AeroVironment from $305.00 to $229.00 and set a "buy" rating for the company in a research report on Wednesday, July 1st. Finally, Wolfe Research downgraded AeroVironment to a "buy" rating in a report on Tuesday, June 30th. Two analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $266.68.

Insider Activity at AeroVironment

In other AeroVironment news, Director Stephen F. Page sold 250 shares of the firm's stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $191.98, for a total value of $47,995.00. Following the sale, the director owned 48,503 shares of the company's stock, valued at $9,311,605.94. This trade represents a 0.51% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Brian Charles Shackley sold 205 shares of AeroVironment stock in a transaction that occurred 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 in the company, valued at approximately $1,592,271.68. This represents a 2.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 705 shares of company stock valued at $132,979. 0.79% of the stock is owned by corporate insiders.

Key Headlines Impacting AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: New U.S. drone tariffs could benefit AVAV. President Trump’s August 13 proclamation imposes broad tariffs on foreign drone imports, potentially steering demand toward U.S. manufacturers such as AeroVironment and supporting domestic pricing, production and market share. Trump’s New Drone Tariffs Give AeroVironment, Kratos and Red Cat a Policy Tailwind
• Positive Sentiment: Greek joint venture expands AeroVironment’s European footprint. AV Eagle, formed with Eyeonix SA, will establish localized production and technology capabilities in Greece after receiving foreign-investment approval. The venture could improve access to European defense programs, strengthen supply-chain resilience and position AVAV to participate in the region’s growing counter-drone market. AeroVironment to Establish Industrial Presence in Greece Through AV Eagle
• Positive Sentiment: Propulsion investments support longer-term growth. AeroVironment is expanding electric, hybrid and unmanned-aircraft propulsion capabilities, potentially broadening its addressable markets beyond current defense platforms. Clear Street also initiated coverage with a Buy rating, adding to generally favorable analyst sentiment. Can AeroVironment’s Propulsion Capabilities Support Future Growth?
• Neutral Sentiment: Recent operating momentum remains strong, but valuation is demanding. The latest reported quarter included $641.6 million in revenue, up 133.3% year over year, and EPS of $1.84 versus a $1.47 consensus estimate. However, AVAV remains unprofitable on a trailing basis, trades below its 200-day moving average and carries a high PEG ratio, leaving the stock sensitive to execution and future-growth expectations.
• Negative Sentiment: Shareholder-law-firm investigations add headline risk. Berger Montague and Grabar Law Office are investigating whether AeroVironment’s board properly disclosed potential competition for U.S. Space Force SCAR program work. The claims are allegations, but any litigation, disclosure findings or related costs could pressure investor confidence. Berger Montague investigates AeroVironment’s board
• Negative Sentiment: A director’s stock sale is a minor cautionary signal. Director Stephen Page sold 250 shares worth approximately $48,000 under a pre-arranged Rule 10b5-1 plan. Because the sale was small relative to his remaining holdings and scheduled in advance, its direct impact is likely limited.

AeroVironment Price Performance

AVAV stock opened at $160.22 on Monday. The company has a debt-to-equity ratio of 0.17, a current ratio of 4.30 and a quick ratio of 3.59. AeroVironment, Inc. has a 52-week low of $135.20 and a 52-week high of $417.86. The company has a 50-day moving average of $161.80 and a two-hundred day moving average of $190.00. The stock has a market capitalization of $8.14 billion, a price-to-earnings ratio of -43.54, a price-to-earnings-growth ratio of 5.45 and a beta of 1.41.

AeroVironment (NASDAQ:AVAV - Get Free Report) last issued its quarterly earnings results on Monday, June 29th. The aerospace company reported $1.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.47 by $0.37. The company had revenue of $641.62 million for the quarter, compared to the consensus estimate of $555.97 million. AeroVironment had a positive return on equity of 3.71% and a negative net margin of 9.00%.The firm's revenue was up 133.3% compared to the same quarter last year. During the same period last year, the business posted $1.61 earnings per share. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. As a group, equities research analysts anticipate that AeroVironment, Inc. will post 3.26 EPS for the current year.

AeroVironment Profile

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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