AeroVironment (NASDAQ:AVAV) Shares Down 2.7% - Here's What Happened

Key Points

• AeroVironment shares fell 2.7% to $143.24 in mid-day trading, below both its 50-day moving average of $158.82 and 200-day average of $172.06.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $238.89, despite differing target adjustments.
• The company exceeded quarterly expectations, reporting $0.59 in EPS versus $0.22 expected and $480.49 million in revenue versus $451.95 million projected; quarterly revenue increased 5.7% year over year.

AeroVironment, Inc. (NASDAQ:AVAV - Get Free Report)'s stock price was down 2.7% during mid-day trading on Tuesday. The company traded as low as $142.42 and last traded at $143.24. Approximately 1,539,630 shares traded hands during trading, a decline of 8% from the average daily volume of 1,677,896 shares. The stock had previously closed at $147.23.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on AVAV shares. The Goldman Sachs Group set a $285.00 target price on shares of AeroVironment in a research report on Thursday, September 17th. Piper Sandler cut their price target on AeroVironment from $248.00 to $235.00 and set an "overweight" rating for the company in a research note on Thursday, July 9th. William Blair reaffirmed an "outperform" rating on shares of AeroVironment in a research note on Wednesday, July 15th. Weiss Ratings downgraded AeroVironment from a "sell (d)" rating to a "sell (d-)" rating in a report on Friday, September 18th. Finally, JPMorgan Chase & Co. lifted their price objective on AeroVironment from $200.00 to $210.00 and gave the stock an "overweight" rating in a research note on Thursday, September 10th. Two research 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. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $238.89.

AeroVironment Price Performance

The company's 50 day moving average price is $158.82 and its 200 day moving average price is $172.06. The firm has a market capitalization of $7.28 billion, a P/E ratio of -61.21, a PEG ratio of 2.40 and a beta of 1.41. The company has a debt-to-equity ratio of 0.17, a current ratio of 4.26 and a quick ratio of 3.33.

AeroVironment (NASDAQ:AVAV - Get Free Report) last released its earnings results on Wednesday, September 9th. The aerospace company reported $0.59 EPS for the quarter, topping analysts' consensus estimates of $0.22 by $0.37. The firm had revenue of $480.49 million during the quarter, compared to analyst estimates of $451.95 million. AeroVironment had a negative net margin of 5.77% and a positive return on equity of 4.04%. The business's quarterly revenue was up 5.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.32 EPS. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. As a group, sell-side analysts anticipate that AeroVironment, Inc. will post 3.25 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Stephen Page sold 250 shares of the company's stock in a transaction on 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 transaction, the director directly owned 48,253 shares of the company's stock, valued at approximately $7,347,484.31. This represents a 0.52% decrease in their position. The sale 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, CAO Brian Shackley sold 205 shares of the company's stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $201.86, for a total value of $41,381.30. Following the transaction, the chief accounting officer directly owned 7,888 shares of the company's stock, valued at $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. 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 Investors Weigh In On AeroVironment

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new stake in shares of AeroVironment during the 2nd quarter worth $574,566,000. Geode Capital Management LLC raised its holdings in AeroVironment by 8.8% in the 4th quarter. Geode Capital Management LLC now owns 884,395 shares of the aerospace company's stock valued at $213,956,000 after buying an additional 71,903 shares during the last quarter. Heard Capital LLC boosted its position in AeroVironment by 48.4% during the 4th 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 period. Norges Bank acquired a new position in AeroVironment in the 4th quarter valued at approximately $94,655,000. Finally, Stephens Investment Management Group LLC lifted its holdings in shares of AeroVironment by 18.8% during the first 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. 86.38% of the stock is currently owned by institutional investors and hedge funds.

About AeroVironment

AeroVironment, Inc is a defense technology company that develops and produces unmanned aircraft systems, loitering munitions, counter-unmanned aircraft systems and related robotic technologies. Its products are designed for intelligence, surveillance and reconnaissance, precision strike, force protection and tactical communications applications.

The company's portfolio includes the Raven, Puma and Wasp small unmanned aircraft systems; the JUMP 20 vertical takeoff and landing aircraft; and the Switchblade family of loitering munitions.

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