Wall Street Zen Upgrades AeroVironment (NASDAQ:AVAV) to "Hold"

Key Points

• Wall Street Zen upgraded AeroVironment from “sell” to “hold”, adding to a mixed but generally positive analyst backdrop. MarketBeat says the stock still carries a Moderate Buy consensus and a price target of $277.37.
• AeroVironment’s latest quarterly results beat expectations, with EPS of $1.84 versus $1.47 expected and revenue of $641.62 million versus $555.97 million expected. Revenue rose 133.3% year over year, showing strong momentum in its defense business.
• Investor sentiment has been boosted by a $500 million U.S. Army/Department of Defense counter-drone contract and other positive news flow, though the stock also faces some legal overhang from securities-fraud class action deadlines. Institutional ownership remains high at 86.38%.

AeroVironment (NASDAQ:AVAV - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "sell" rating to a "hold" rating in a research note issued to investors on Sunday.

A number of other brokerages have also recently commented on AVAV. Robert W. Baird reduced their price objective on AeroVironment from $260.00 to $235.00 and set an "outperform" rating on the stock in a research note on Wednesday, March 11th. Jefferies Financial Group lowered their target price on AeroVironment from $305.00 to $229.00 and set a "buy" rating for the company in a research note on Wednesday. UBS Group dropped their target price on AeroVironment from $172.00 to $166.00 and set a "neutral" rating on the stock in a report on Tuesday, June 30th. Zacks Research upgraded AeroVironment from a "strong sell" rating to a "hold" rating in a report on Monday, May 4th. Finally, Weiss Ratings restated a "sell (d)" rating on shares of AeroVironment in a report on Monday, June 8th. Three equities research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $277.37.

AeroVironment Stock Performance

Shares of AVAV stock opened at $190.89 on Friday. The company's fifty day simple moving average is $174.86 and its 200-day simple moving average is $223.52. AeroVironment has a 52 week low of $135.20 and a 52 week high of $417.86. The company has a current ratio of 4.30, a quick ratio of 4.54 and a debt-to-equity ratio of 0.17. The company has a market cap of $9.66 billion, a PE ratio of -51.87, a P/E/G ratio of 2.86 and a beta of 1.39.

AeroVironment (NASDAQ:AVAV - Get Free Report) last announced its quarterly earnings results on Monday, June 29th. The aerospace company reported $1.84 earnings per share for the quarter, topping analysts' consensus estimates of $1.47 by $0.37. AeroVironment had a negative net margin of 9.00% and a positive return on equity of 3.71%. The firm had revenue of $641.62 million during the quarter, compared to analysts' expectations of $555.97 million. During the same period in the prior year, the company earned $1.61 EPS. The firm's revenue was up 133.3% on a year-over-year basis. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. As a group, equities research analysts anticipate that AeroVironment will post 3.43 EPS for the current year.

Insider Activity

In other news, Director Stephen F. Page sold 250 shares of the stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $174.41, for a total transaction of $43,602.50. Following the completion of the transaction, the director directly owned 49,001 shares in the company, valued at approximately $8,546,264.41. This represents a 0.51% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 750 shares of company stock valued at $133,502. Corporate insiders own 0.81% of the company's stock.

Institutional Trading of AeroVironment

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Groupama Asset Managment bought a new position in shares of AeroVironment in the 3rd quarter worth about $314,890,000. Geode Capital Management LLC grew its position in shares of AeroVironment by 8.8% during 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 raised its stake in AeroVironment by 48.4% during the fourth quarter. Heard Capital LLC now owns 722,150 shares of the aerospace company's stock worth $174,681,000 after acquiring an additional 235,685 shares during the period. Van ECK Associates Corp raised its stake in AeroVironment by 17.4% during the third quarter. Van ECK Associates Corp now owns 686,273 shares of the aerospace company's stock worth $216,101,000 after acquiring an additional 101,713 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in AeroVironment by 15.7% during the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 614,444 shares of the aerospace company's stock worth $193,390,000 after acquiring an additional 83,322 shares during the period. Institutional investors own 86.38% of the company's stock.

AeroVironment News Summary

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: AeroVironment won a $500 million U.S. Army / Department of Defense contract for counter-drone systems, which traders see as a major validation of its anti-drone technology and a meaningful revenue opportunity. Why Is AeroVironment (AVAV) Stock Rocketing Higher Today
• Positive Sentiment: The company also recently posted blockbuster fiscal Q4 results, which reinforced the bullish view that demand for its drones and counter-drone systems is accelerating. AVAV Stock Skyrockets as AeroVironment Reports Blockbuster Q4 Earnings Results
• Positive Sentiment: Analysts and market commentators are highlighting the company’s geopolitical tailwind from the ongoing Russia-Ukraine war and rising military demand for anti-drone tools, which supports the stock’s longer-term growth story. A Longlasting Russia-Ukraine War Creates a Catalyst to Buy AeroVironment Stock Now
• Positive Sentiment: Brokerage sentiment has also improved, with Wedbush upgrading AVAV and Piper Sandler reiterating an overweight rating with a higher target, suggesting Wall Street sees more upside after the contract win. Wedbush upgrade news
• Neutral Sentiment: There was also unusual call-option buying in AVAV, which signals heightened trader interest but does not by itself change fundamentals. Traders Purchase Large Volume of AeroVironment Call Options NASDAQ: AVAV
• Negative Sentiment: Multiple law firms announced securities-fraud class action deadlines tied to prior disclosures, adding legal noise and a potential liability overhang for investors. AVAV FINAL DEADLINE: ROSEN... Securities Class Action

AeroVironment Company 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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