Delphi Financial Group Inc. Acquires New Stake in AeroVironment, Inc. $AVAV

Key Points

• Delphi Financial Group bought a new position of 12,085 shares (~$3.8M) in AeroVironment, representing about 2.1% of Delphi’s portfolio and its 15th-largest holding.
• Q3 results showed revenue up ~143% YoY but missed consensus on revenue and EPS, and management set FY2026 guidance of $2.75–$3.10 EPS, which triggered a share selloff and prompted analyst target cuts despite a consensus "Moderate Buy" rating and a $318.78 average target.
• Material risks highlighted include reports of a potential SCAR/Space Force contract disruption (estimated $1.4–$1.7B), a $727M notes issuance that raises leverage/covenant risk, and recent insider sales plus an investor probe that increase headline volatility.

Delphi Financial Group Inc. bought a new position in shares of AeroVironment, Inc. (NASDAQ:AVAV - Free Report) during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 12,085 shares of the aerospace company's stock, valued at approximately $3,805,000. AeroVironment makes up approximately 2.1% of Delphi Financial Group Inc.'s investment portfolio, making the stock its 15th largest holding.

Other institutional investors have also recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its stake in shares of AeroVironment by 1.5% in the 3rd quarter. Vanguard Group Inc. now owns 3,530,073 shares of the aerospace company's stock worth $1,111,585,000 after buying an additional 51,959 shares in the last quarter. Van ECK Associates Corp lifted its holdings in shares of AeroVironment by 17.4% in the third quarter. Van ECK Associates Corp now owns 686,273 shares of the aerospace company's stock valued at $216,101,000 after buying an additional 101,713 shares during the period. Geode Capital Management LLC boosted its stake in AeroVironment by 1.0% during the second quarter. Geode Capital Management LLC now owns 678,431 shares of the aerospace company's stock valued at $193,342,000 after buying an additional 6,475 shares in the last quarter. Invesco Ltd. boosted its stake in AeroVironment by 75.6% during the second quarter. Invesco Ltd. now owns 609,019 shares of the aerospace company's stock valued at $173,540,000 after buying an additional 262,239 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in AeroVironment by 16.4% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 531,122 shares of the aerospace company's stock worth $151,309,000 after acquiring an additional 74,636 shares during the period. 86.38% of the stock is currently owned by institutional investors and hedge funds.

AeroVironment Stock Performance

Shares of AVAV opened at $207.07 on Friday. The company has a 50-day moving average of $281.00 and a two-hundred day moving average of $291.88. The stock has a market cap of $10.34 billion, a price-to-earnings ratio of -47.71, a PEG ratio of 3.65 and a beta of 1.26. The company has a debt-to-equity ratio of 0.17, a current ratio of 5.51 and a quick ratio of 4.29. AeroVironment, Inc. has a one year low of $102.25 and a one year high of $417.86.

AeroVironment (NASDAQ:AVAV - Get Free Report) last released its quarterly earnings results on Tuesday, March 10th. The aerospace company reported $0.64 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.68 by ($0.04). The firm had revenue of $408.05 million for the quarter, compared to analyst estimates of $487.94 million. AeroVironment had a negative net margin of 13.93% and a positive return on equity of 3.26%. The firm's revenue was up 143.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.30 EPS. AeroVironment has set its FY 2026 guidance at 2.750-3.100 EPS. On average, equities research analysts expect that AeroVironment, Inc. will post 3.38 earnings per share for the current year.

Insider Buying and Selling at AeroVironment

In other AeroVironment news, CAO Brian Charles Shackley sold 200 shares of the business's stock in a transaction on Tuesday, December 30th. The shares were sold at an average price of $250.92, for a total transaction of $50,184.00. Following the sale, the chief accounting officer directly owned 5,994 shares of the company's stock, valued at $1,504,014.48. The trade was a 3.23% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Stephen F. Page sold 250 shares of the firm's stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $300.00, for a total value of $75,000.00. Following the completion of the sale, the director directly owned 50,001 shares of the company's stock, valued at approximately $15,000,300. This trade represents a 0.50% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 4,474 shares of company stock valued at $1,390,404 in the last three months. 0.81% of the stock is currently owned by company insiders.

AeroVironment News Summary

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Underlying demand/backlog: Q3 revenue rose ~143% YoY and the company still reports a multi‑hundred‑million to billion‑level backlog that supports longer‑term revenue — a constructive backdrop if execution and contract timing normalize. Q3 revenue and backlog discussion
• Positive Sentiment: Analyst support remains: despite trimming targets, many firms (BTIG, Jefferies, Canaccord and others) kept Buy/Outperform ratings, signalling expectations of mid/long‑term upside if AeroVironment regains program visibility and scales production. Analyst note summary (Benzinga)
• Neutral Sentiment: Earnings and guidance: Q3 results beat on some metrics (strong YoY revenue growth) but missed consensus on revenue and EPS; management set FY‑2026 EPS guidance of $2.75–$3.10, below street expectations — creates uncertainty but also sets clearer, more conservative targets. Q3 miss and guidance
• Neutral Sentiment: Price‑target downgrades but ratings mixed: several shops cut targets (KeyBanc, Canaccord, BTIG, Jefferies) while mostly keeping Buy/Outperform stances — implies recalibrated expectations rather than broad conviction shift. KeyCorp target cut Canaccord note
• Neutral Sentiment: Short‑interest reporting in feeds shows anomalous/zero values (likely data error); no clear short squeeze signal from those items. Short interest entries (data anomaly)
• Negative Sentiment: Market reaction: shares plunged after the Q3 miss and the outlook cut as investors punished reduced near‑term visibility and growth assumptions. Shares fall on Q3 miss
• Negative Sentiment: Contract risk: reports of SCAR/Space Force contract termination or timing disruptions remove material unfunded backlog (reports cite ~$1.4–1.7B), increasing near‑term revenue uncertainty and pressuring sentiment. SCAR contract and backlog risk
• Negative Sentiment: Financing/leverage risk: disclosure of a $727M notes issuance tightens covenants and raises leverage/liquidity risk — an added structural concern for investors already focused on visibility. Notes issuance risk
• Negative Sentiment: Headline/legal/insider risk: Pomerantz launched an investor probe and the CFO disclosed small share sales — both increase short‑term headline risk and may amplify volatility. Pomerantz investigation CFO Form 4

Analysts Set New Price Targets

Several brokerages have commented on AVAV. BNP Paribas Exane began coverage on shares of AeroVironment in a research report on Tuesday, November 18th. They issued an "outperform" rating and a $355.00 price target on the stock. Jefferies Financial Group lowered their price objective on shares of AeroVironment from $390.00 to $305.00 and set a "buy" rating on the stock in a research note on Thursday. Cantor Fitzgerald dropped their target price on shares of AeroVironment from $335.00 to $315.00 and set an "overweight" rating on the stock in a report on Wednesday, December 10th. KeyCorp cut their target price on shares of AeroVironment from $330.00 to $295.00 and set an "overweight" rating for the company in a research note on Wednesday. Finally, Citizens Jmp reduced their target price on shares of AeroVironment from $400.00 to $350.00 and set a "market outperform" rating for the company in a report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, one has given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $318.78.

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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