AeroVironment (NASDAQ:AVAV) Shares Climb 9.3% - Here's Why

Key Points

• AeroVironment shares rose about 9.3% to roughly $137.69 in mid-day trading, although volume was 55% below the average session level.
• Recent analyst views remain broadly positive: the stock has a consensus “Moderate Buy” rating and a $224.81 average price target, despite several firms lowering their targets.
• The company beat quarterly expectations, reporting $0.59 EPS versus $0.22 expected and $480.49 million in revenue versus $451.95 million expected; revenue increased 5.7% year over year.

AeroVironment, Inc. (NASDAQ:AVAV - Get Free Report) shares traded up 9.3% during mid-day trading on Thursday. The stock traded as high as $136.69 and last traded at $137.6920. 744,524 shares were traded during mid-day trading, a decline of 55% from the average session volume of 1,647,001 shares. The stock had previously closed at $125.95.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on AVAV. Bank of America cut their target price on AeroVironment from $225.00 to $185.00 and set a "buy" rating on the stock in a research report on Friday, September 11th. BTIG Research reaffirmed a "buy" rating and issued a $205.00 price objective on shares of AeroVironment in a research note on Thursday, September 10th. Royal Bank Of Canada downgraded AeroVironment from an "outperform" rating to a "sector perform" rating and cut their price objective for the company from $210.00 to $180.00 in a report on Thursday, July 9th. JPMorgan Chase & Co. raised their target price on AeroVironment from $200.00 to $210.00 and gave the company an "overweight" rating in a report on Thursday, September 10th. Finally, Piper Sandler cut their price target on shares of AeroVironment from $248.00 to $235.00 and set an "overweight" rating on the stock in a research note on Thursday, July 9th. Two research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $224.81.

AeroVironment Trading Up 9.4%

The company has a market cap of $7.01 billion, a price-to-earnings ratio of -58.86, a PEG ratio of 1.93 and a beta of 1.36. The company has a quick ratio of 3.33, a current ratio of 4.26 and a debt-to-equity ratio of 0.17. The business's fifty day simple moving average is $142.58 and its two-hundred day simple moving average is $189.69.

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

Insider Buying and Selling

In other news, Director Stephen Page sold 250 shares of AeroVironment stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $152.27, for a total transaction of $38,067.50. Following the completion of the transaction, the director owned 48,253 shares of the company's stock, valued at $7,347,484.31. The trade was a 0.52% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. 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 shares were 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. Over the last quarter, insiders have sold 805 shares of company stock valued at $142,671. Insiders own 0.79% of the company's stock.

Institutional Trading of AeroVironment

Several hedge funds and other institutional investors have recently bought and sold shares of the company. BlackRock Inc. purchased a new position in shares of AeroVironment in the 2nd quarter worth about $574,566,000. Stephens Investment Management Group LLC grew its holdings in shares of AeroVironment by 18.8% during the 1st quarter. Stephens Investment Management Group LLC now owns 490,426 shares of the aerospace company's stock worth $89,772,000 after purchasing an additional 77,619 shares during the period. Congress Asset Management Co. grew its holdings in shares of AeroVironment by 20.1% during the 3rd quarter. Congress Asset Management Co. now owns 595,134 shares of the aerospace company's stock worth $84,640,000 after purchasing an additional 99,494 shares during the period. American Capital Management Inc. acquired a new stake in AeroVironment during the 2nd quarter worth approximately $69,745,000. Finally, Bank of America Corp DE acquired a new stake in AeroVironment during the 2nd quarter worth approximately $67,549,000. 86.38% of the stock is owned by hedge funds and other institutional investors.

AeroVironment Company Profile

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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