AeroVironment (NASDAQ:AVAV) Shares Gap Down on Disappointing Earnings

Shares of AeroVironment, Inc. (NASDAQ:AVAV) gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $281.42, but opened at $264.25. AeroVironment shares last traded at $250.5910, with a volume of 1,255,454 shares.

The aerospace company reported $0.44 EPS for the quarter, missing the consensus estimate of $0.87 by ($0.43). The business had revenue of $472.51 million during the quarter, compared to the consensus estimate of $466.16 million. AeroVironment had a positive return on equity of 4.67% and a negative net margin of 4.14%.AeroVironment’s revenue was up 150.7% compared to the same quarter last year. During the same quarter last year, the firm posted $0.47 earnings per share. AeroVironment has set its FY 2026 guidance at 3.400-3.550 EPS.

Analyst Upgrades and Downgrades

AVAV has been the topic of a number of recent analyst reports. Canaccord Genuity Group set a $400.00 price target on shares of AeroVironment in a report on Wednesday. Royal Bank Of Canada decreased their target price on shares of AeroVironment from $440.00 to $400.00 and set an “outperform” rating for the company in a research report on Monday. Jefferies Financial Group boosted their target price on AeroVironment from $320.00 to $365.00 and gave the stock a “buy” rating in a report on Wednesday, October 1st. Cantor Fitzgerald dropped their price objective on AeroVironment from $335.00 to $315.00 and set an “overweight” rating on the stock in a research note on Wednesday. Finally, Citizens Jmp reissued a “market outperform” rating and issued a $400.00 price target on shares of AeroVironment in a report on Wednesday. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, AeroVironment has a consensus rating of “Moderate Buy” and an average target price of $373.50.

Insider Activity

In other news, CFO Kevin Patrick Mcdonnell sold 998 shares of the firm’s stock in a transaction dated Friday, October 10th. The shares were sold at an average price of $399.74, for a total value of $398,940.52. Following the transaction, the chief financial officer owned 19,324 shares of the company’s stock, valued at approximately $7,724,575.76. This trade represents a 4.91% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Trace E. Stevenson sold 1,717 shares of the company’s stock in a transaction on Monday, October 6th. The shares were sold at an average price of $381.00, for a total transaction of $654,177.00. Following the sale, the insider owned 4,907 shares of the company’s stock, valued at $1,869,567. The trade was a 25.92% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 3,228 shares of company stock worth $1,223,157 in the last ninety days. Insiders own 0.81% of the company’s stock.

Hedge Funds Weigh In On AeroVironment

A number of hedge funds and other institutional investors have recently made changes to their positions in AVAV. Groupama Asset Managment acquired a new stake in AeroVironment during the 3rd quarter worth $314,890,000. Vanguard Group Inc. raised its position in shares of AeroVironment by 14.3% during the second quarter. Vanguard Group Inc. now owns 3,478,114 shares of the aerospace company’s stock worth $991,089,000 after purchasing an additional 433,830 shares during the period. Ameriprise Financial Inc. lifted its holdings in shares of AeroVironment by 281.6% during the 1st quarter. Ameriprise Financial Inc. now owns 430,307 shares of the aerospace company’s stock valued at $51,288,000 after purchasing an additional 317,530 shares in the last quarter. CIBC Private Wealth Group LLC increased its stake in AeroVironment by 24,798.7% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 315,716 shares of the aerospace company’s stock worth $99,416,000 after purchasing an additional 314,448 shares in the last quarter. Finally, Alyeska Investment Group L.P. raised its holdings in AeroVironment by 48.2% during the 1st quarter. Alyeska Investment Group L.P. now owns 902,814 shares of the aerospace company’s stock worth $107,606,000 after buying an additional 293,553 shares during the period. 86.38% of the stock is owned by institutional investors.

AeroVironment Stock Performance

The stock has a market cap of $12.54 billion, a P/E ratio of -394.00, a price-to-earnings-growth ratio of 4.00 and a beta of 1.14. The company has a debt-to-equity ratio of 0.16, a current ratio of 5.96 and a quick ratio of 5.12. The stock’s 50 day simple moving average is $334.53 and its two-hundred day simple moving average is $274.16.

AeroVironment Company Profile

AeroVironment, Inc designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses in the United States and internationally. It operates through Small Unmanned Aircraft Systems (SUAS), Tactical Missile System (TMS), Medium Unmanned Aircraft Systems (MUAS), and High Altitude Pseudo-Satellite Systems (HAPS) segments.