AeroVironment (NASDAQ:AVAV) Hits New 12-Month Low - Here's Why

Key Points

• AeroVironment hit a new 52-week low, trading as low as $110.75 and last at $110.36, down from the prior close of $123.53.
• Despite the share-price decline, the company beat quarterly estimates, reporting EPS of $0.59 versus $0.22 expected and revenue of $480.5 million versus $452.0 million; revenue grew 5.7% year over year.
• Analysts maintain a consensus “Moderate Buy” rating and a $223.86 price target, though recent coverage includes price-target reductions and a downgrade to “Sector Perform.”

AeroVironment, Inc. (NASDAQ:AVAV - Get Free Report) hit a new 52-week low during mid-day trading on Wednesday. The stock traded as low as $110.75 and last traded at $110.3570, with a volume of 894,807 shares trading hands. The stock had previously closed at $123.53.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on AVAV shares. Oppenheimer began coverage on shares of AeroVironment in a research note on Thursday, October 22nd. They set an "outperform" rating and a $205.00 price target for the company. Rothschild & Co Redburn started coverage on shares of AeroVironment in a report on Tuesday, October 6th. They issued a "neutral" rating and a $165.00 price objective on the stock. Royal Bank Of Canada cut shares of AeroVironment from an "outperform" rating to a "sector perform" rating and reduced their price objective for the company from $210.00 to $180.00 in a research note on Thursday, July 9th. Canaccord Genuity Group lowered their target price on shares of AeroVironment from $280.00 to $240.00 and set a "buy" rating for the company in a report on Friday, July 10th. Finally, Jefferies Financial Group dropped their target price on shares of AeroVironment from $229.00 to $204.00 and set a "buy" rating for the company in a research report on Wednesday, September 16th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $223.86.

AeroVironment Price Performance

The firm has a market cap of $5.71 billion, a price-to-earnings ratio of -48.13, a P/E/G ratio of 1.93 and a beta of 1.42. The company has a current ratio of 4.26, a quick ratio of 3.33 and a debt-to-equity ratio of 0.17. The company has a 50 day moving average of $139.91 and a 200 day moving average of $184.82.

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 (EPS) for the quarter, topping 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 the consensus estimate of $451.95 million. During the same period in the prior year, the company earned $0.32 earnings per share. The company's revenue for the quarter was up 5.7% compared to the same quarter last year. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. Equities research analysts predict that AeroVironment, Inc. will post 3.26 EPS for the current fiscal year.

Insiders Place Their Bets

In other AeroVironment news, 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 transaction, 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen F. Page sold 250 shares of AeroVironment 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 completion of the sale, the director directly owned 48,253 shares in the company, valued at $7,347,484.31. This represents a 0.52% 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. Over the last 90 days, insiders have sold 805 shares of company stock worth $142,671. 0.79% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Sunbelt Securities Inc. acquired a new position in AeroVironment during the 1st quarter worth approximately $25,000. Balance Wealth Partners LLC acquired a new stake in shares of AeroVironment in the third quarter valued at approximately $26,000. Whittier Trust Co. of Nevada Inc. bought a new stake in shares of AeroVironment in the first quarter worth $28,000. DecisionPoint Financial LLC bought a new stake in shares of AeroVironment in the third quarter worth $28,000. Finally, Toth Financial Advisory Corp acquired a new position in AeroVironment during the second quarter worth $33,000. 86.38% of the stock is currently owned by institutional investors.

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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