Capstone Investment Advisors LLC Makes New $1.62 Million Investment in AeroVironment, Inc. $AVAV

Key Points

• Capstone Investment Advisors bought 9,820 AeroVironment shares worth approximately $1.62 million in the second quarter. Institutional investors and hedge funds collectively own 86.38% of AVAV.
• Analysts maintain a generally bullish outlook, with a consensus rating of “Moderate Buy” and an average price target of $266.68, despite several recent target-price cuts. The stock opened at $152.28, well below its 52-week high of $417.86.
• AeroVironment exceeded quarterly expectations with $1.84 in EPS and $641.62 million in revenue, up 133.3% year over year. Growth catalysts include a $51 million U.S. Army Switchblade order and NASA’s Mars helicopter program, while insider selling and shareholder investigations pose risks.

Capstone Investment Advisors LLC bought a new stake in shares of AeroVironment, Inc. (NASDAQ:AVAV - Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund bought 9,820 shares of the aerospace company's stock, valued at approximately $1,621,000.

A number of other institutional investors and hedge funds also recently modified their holdings of the business. NewEdge Wealth LLC boosted its holdings in shares of AeroVironment by 1.1% in the 4th quarter. NewEdge Wealth LLC now owns 3,709 shares of the aerospace company's stock valued at $897,000 after buying an additional 39 shares during the period. J.W. Cole Advisors Inc. raised its stake in AeroVironment by 3.7% during the fourth quarter. J.W. Cole Advisors Inc. now owns 1,081 shares of the aerospace company's stock worth $261,000 after acquiring an additional 39 shares during the period. Parkside Financial Bank & Trust raised its stake in AeroVironment by 29.7% during the fourth quarter. Parkside Financial Bank & Trust now owns 188 shares of the aerospace company's stock worth $45,000 after acquiring an additional 43 shares during the period. Family Legacy Inc. lifted its holdings in AeroVironment by 2.2% in the fourth quarter. Family Legacy Inc. now owns 2,326 shares of the aerospace company's stock worth $563,000 after acquiring an additional 51 shares during the last quarter. Finally, Vanguard Personalized Indexing Management LLC lifted its holdings in AeroVironment by 2.3% in the fourth quarter. Vanguard Personalized Indexing Management LLC now owns 2,667 shares of the aerospace company's stock worth $645,000 after acquiring an additional 60 shares during the last quarter. 86.38% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research firms have recently commented on AVAV. Citizens Jmp lowered their target price on AeroVironment from $350.00 to $230.00 and set a "market outperform" rating for the company in a report on Friday, July 10th. William Blair reissued an "outperform" rating on shares of AeroVironment in a report on Wednesday, July 15th. BTIG Research restated a "buy" rating and set a $205.00 price objective on shares of AeroVironment in a research report on Thursday, July 9th. Wall Street Zen upgraded AeroVironment from a "sell" rating to a "hold" rating in a research note on Sunday, July 5th. Finally, Canaccord Genuity Group dropped their target price on AeroVironment from $280.00 to $240.00 and set a "buy" rating on the stock in a research report on Friday, July 10th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $266.68.

AeroVironment Price Performance

NASDAQ AVAV opened at $152.28 on Friday. AeroVironment, Inc. has a 52 week low of $135.20 and a 52 week high of $417.86. The company has a current ratio of 4.30, a quick ratio of 3.59 and a debt-to-equity ratio of 0.17. The stock has a market cap of $7.74 billion, a price-to-earnings ratio of -41.38, a price-to-earnings-growth ratio of 5.00 and a beta of 1.41. The company has a 50-day moving average price of $160.19 and a two-hundred day moving average price of $186.89.

AeroVironment (NASDAQ:AVAV - Get Free Report) last announced its quarterly earnings results on Monday, June 29th. The aerospace company reported $1.84 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 analyst estimates of $555.97 million. AeroVironment had a negative net margin of 9.00% and a positive return on equity of 3.71%. AeroVironment's revenue was up 133.3% compared to the same quarter last year. During the same quarter last year, the business earned $1.61 earnings per share. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. Analysts forecast that AeroVironment, Inc. will post 3.26 EPS for the current year.

Key Stories Impacting AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: $51 million U.S. Army Switchblade order: The additional Switchblade 600 Block 2 systems, including units supporting a foreign military sale, reinforce demand for AeroVironment’s loitering munitions and provide near-term backlog and revenue visibility. AeroVironment Receives $51 Million U.S. Army Order
• Positive Sentiment: NASA Mars helicopter program: AeroVironment will co-manufacture three Ingenuity-inspired helicopters with NASA’s Jet Propulsion Laboratory for a planned 2028 Mars mission. The project expands the company’s autonomous-systems credentials and creates a valuable long-term technology catalyst, though its immediate financial impact is likely limited. AeroVironment to Co-Manufacture Helicopters for Mars With NASA
• Positive Sentiment: Analyst remains bullish: William Blair’s Louie DiPalma reiterated a Buy rating, citing strong loitering-munitions demand and the potential for an Army E-HEL laser contract to offset possible near-term revenue pressure. William Blair Reiterates Buy on AeroVironment
• Neutral Sentiment: Upcoming catalysts: AeroVironment will report fiscal 2027 first-quarter results after the September 9 close, followed by a September 10 Jefferies Global Industrials Conference presentation. Investors will look for updates on production expansion, European growth, backlog conversion and guidance. AeroVironment to Announce First-Quarter Earnings
• Negative Sentiment: Shareholder investigations: Two law firms announced investigations into whether AeroVironment’s board and executives adequately disclosed competitive exposure related to the U.S. Space Force’s SCAR program. The inquiries create legal, reputational and disclosure risks, although they do not represent established wrongdoing. Berger Montague AeroVironment Investigation
• Negative Sentiment: Insider selling and valuation concerns: Recent trading data showed insider sales without reported purchases, while market commentary pointed to bearish technical trends and potential short-term revenue pressure ahead of earnings.

Insider Buying and Selling at AeroVironment

In other news, Director Stephen F. Page sold 250 shares of the stock in a transaction 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 completion of the transaction, the director owned 48,503 shares of the company's stock, valued at approximately $9,311,605.94. This represents a 0.51% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed 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 dated Friday, August 14th. The shares were sold at an average price of $201.86, for a total transaction of $41,381.30. Following the sale, the chief accounting officer 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 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 705 shares of company stock worth $132,979 in the last ninety days. 0.79% of the stock is owned by company insiders.

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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