AeroVironment (NASDAQ:AVAV) Stock Price Up 4.4% - Still a Buy?

Key Points

• AeroVironment shares rose 4.4% to $163.38, with trading volume slightly above average. The move followed an earnings beat, with quarterly EPS of $0.59 versus the $0.22 consensus and revenue of $480.49 million, up 5.7% year over year.
• Growth visibility remains strong: Funded backlog increased to approximately $1.5 billion, while expanding autonomous-systems, counter-drone and directed-energy offerings—and new manufacturing and laser-platform agreements—support the company’s outlook.
• Analysts maintain a generally positive view, with a consensus rating of “Moderate Buy” and an average price target of $238.89. Small, pre-arranged insider sales provide a modest cautionary signal, though insiders retain substantial holdings.

AeroVironment, Inc. (NASDAQ:AVAV - Get Free Report) shares were up 4.4% on Thursday . The company traded as high as $167.76 and last traded at $163.38. 1,770,302 shares were traded during trading, an increase of 5% from the average daily volume of 1,690,711 shares. The stock had previously closed at $156.45.

More AeroVironment News

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Funded backlog provides revenue visibility: AeroVironment ended fiscal first quarter 2027 with approximately $1.5 billion in funded backlog, up from $1.2 billion at the end of the prior quarter. The backlog consists of firm, funded customer orders and could support management’s growth outlook as orders convert into revenue. AeroVironment Has $1.5 Billion in Funded Backlog
• Positive Sentiment: Broader defense platform strengthens the growth narrative: Coverage highlights AeroVironment’s expanding autonomous-systems, counter-drone and directed-energy portfolio, including opportunities across unmanned aerial systems and high-energy lasers. This diversification could increase its addressable market and reduce reliance on any single product line. Is AeroVironment Becoming a Broader Defense Technology Platform?
• Positive Sentiment: New agreements support capacity and directed-energy programs: A long-term agreement with Attalon covers delivery of Valaris high-energy laser platforms, while a collaboration with Nominal will digitize manufacturing and testing data. The initiatives may help AeroVironment scale production and improve execution as customer demand grows. Attalon and AeroVironment Execute Long-Term Agreement
• Neutral Sentiment: Relative strength within the drone sector: AeroVironment has held up better than more speculative drone companies during the sector’s recent weakness, reinforcing its perception as a defense contractor with established programs rather than a purely speculative drone stock. Speculative Drone Names Extend Slide
• Negative Sentiment: Insider selling adds a modest cautionary signal: Director Stephen Page sold 250 shares and Chief Accounting Officer Brian Shackley sold 100 shares at $152.27 under pre-arranged Rule 10b5-1 plans. The sales were small relative to their remaining holdings and appear scheduled, limiting their significance, but they do not provide a positive insider-buying signal. SEC Insider Sale Filing

Analyst Ratings Changes

A number of analysts have commented on AVAV shares. JPMorgan Chase & Co. increased their price target on shares of AeroVironment from $200.00 to $210.00 and gave the company an "overweight" rating in a research note on Thursday, September 10th. Wedbush began coverage on shares of AeroVironment in a research note on Tuesday, June 30th. They set an "outperform" rating and a $250.00 price objective on the stock. Wall Street Zen raised shares of AeroVironment from a "sell" rating to a "hold" rating in a report on Sunday, July 5th. KeyCorp reiterated an "overweight" rating on shares of AeroVironment in a research note on Tuesday, July 28th. Finally, Jefferies Financial Group reduced their price target on AeroVironment from $229.00 to $204.00 and set a "buy" rating for the company in a report on Wednesday. Two 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 assigned a Sell rating to the stock. According to MarketBeat.com, AeroVironment presently has an average rating of "Moderate Buy" and an average target price of $238.89.

AeroVironment Stock Performance

The stock has a market capitalization of $8.30 billion, a price-to-earnings ratio of -69.82, a P/E/G ratio of 5.35 and a beta of 1.41. The company's fifty day simple moving average is $156.81 and its 200 day simple moving average is $176.01. The company has a quick ratio of 3.33, a current ratio of 4.26 and a debt-to-equity ratio of 0.17.

AeroVironment (NASDAQ:AVAV - Get Free Report) last posted its earnings results on Wednesday, September 9th. The aerospace company reported $0.59 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.22 by $0.37. AeroVironment had a negative net margin of 5.77% and a positive return on equity of 4.04%. The company had revenue of $480.49 million during the quarter, compared to analysts' expectations of $451.95 million. During the same quarter last year, the company posted $0.32 EPS. AeroVironment's quarterly revenue was up 5.7% compared to the same quarter last year. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. On average, equities research analysts expect that AeroVironment, Inc. will post 3.25 earnings per share for the current year.

Insider Activity at AeroVironment

In other news, Director Stephen F. Page sold 250 shares of the stock in a transaction that occurred 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 transaction, the director owned 48,253 shares in the company, valued at approximately $7,347,484.31. This trade represents a 0.52% decrease in their ownership of the stock. 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 stock in a transaction that occurred on 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 owned 7,888 shares in the company, valued at approximately $1,592,271.68. This trade represents a 2.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 805 shares of company stock valued at $142,671 over the last 90 days. Company insiders own 0.79% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Norges Bank acquired a new stake in shares of AeroVironment during the 4th quarter worth $94,655,000. BlackRock Inc. acquired a new position in AeroVironment in the second quarter valued at about $574,566,000. GW&K Investment Management LLC raised its stake in AeroVironment by 289.9% in the fourth quarter. GW&K Investment Management LLC now owns 222,055 shares of the aerospace company's stock valued at $53,714,000 after purchasing an additional 165,106 shares in the last quarter. MYDA Advisors LLC bought a new stake in AeroVironment during the fourth quarter worth about $3,628,000. Finally, Korea Investment CORP bought a new stake in AeroVironment during the second quarter worth about $54,901,000. 86.38% of the stock is owned by institutional investors and hedge funds.

AeroVironment Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.