AeroVironment (NASDAQ:AVAV) Stock Rating Lowered by Zacks Research

AeroVironment (NASDAQ:AVAV) was downgraded by stock analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued on Wednesday,Zacks.com reports.

A number of other brokerages have also recently commented on AVAV. Raymond James Financial reiterated an “underperform” rating on shares of AeroVironment in a research report on Monday. The Goldman Sachs Group reduced their price objective on AeroVironment from $486.00 to $429.00 and set a “buy” rating for the company in a research note on Friday, December 12th. Cantor Fitzgerald decreased their target price on AeroVironment from $335.00 to $315.00 and set an “overweight” rating on the stock in a report on Wednesday, December 10th. JPMorgan Chase & Co. initiated coverage on AeroVironment in a research report on Tuesday, February 17th. They set an “overweight” rating and a $320.00 target price on the stock. Finally, Weiss Ratings cut AeroVironment from a “hold (c-)” rating to a “sell (d)” rating in a research report on Monday, February 9th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, one has issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $348.33.

AeroVironment Stock Down 2.6%

AeroVironment stock opened at $220.56 on Wednesday. AeroVironment has a one year low of $102.25 and a one year high of $417.86. The stock has a fifty day moving average of $284.65 and a 200 day moving average of $292.75. The company has a debt-to-equity ratio of 0.16, a quick ratio of 4.29 and a current ratio of 5.08. The stock has a market cap of $11.01 billion, a PE ratio of -176.45, a price-to-earnings-growth ratio of 3.58 and a beta of 1.26.

AeroVironment (NASDAQ:AVAV) last released its quarterly earnings results on Tuesday, December 9th. The aerospace company reported $0.44 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.87 by ($0.43). AeroVironment had a negative net margin of 5.08% and a positive return on equity of 3.42%. The firm had revenue of $472.51 million for the quarter, compared to the consensus estimate of $466.16 million. During the same quarter in the prior year, the firm earned $0.47 earnings per share. The company’s revenue for the quarter was up 150.7% compared to the same quarter last year. AeroVironment has set its FY 2026 guidance at 3.400-3.550 EPS. As a group, sell-side analysts predict that AeroVironment will post 3.38 EPS for the current year.

Insider Buying and Selling at AeroVironment

In other news, CFO Kevin Patrick Mcdonnell sold 879 shares of the business’s stock in a transaction dated Tuesday, February 10th. The stock was sold at an average price of $267.60, for a total value of $235,220.40. Following the transaction, the chief financial officer directly owned 16,422 shares in the company, valued at $4,394,527.20. The trade was a 5.08% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Brian Charles Shackley sold 200 shares of the company’s stock in a transaction dated Tuesday, December 30th. The stock was sold at an average price of $250.92, for a total value of $50,184.00. Following the completion of the transaction, the chief accounting officer directly owned 5,994 shares of the company’s stock, valued at approximately $1,504,014.48. This trade represents a 3.23% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 4,589 shares of company stock valued at $1,428,910 over the last ninety days. 0.81% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On AeroVironment

Several institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. boosted its position in shares of AeroVironment by 1.5% during the third quarter. Vanguard Group Inc. now owns 3,530,073 shares of the aerospace company’s stock worth $1,111,585,000 after acquiring an additional 51,959 shares during the last quarter. Groupama Asset Managment purchased a new stake in AeroVironment in the 3rd quarter worth $314,890,000. Geode Capital Management LLC lifted its stake in AeroVironment by 8.8% in the 4th quarter. Geode Capital Management LLC now owns 884,395 shares of the aerospace company’s stock worth $213,956,000 after purchasing an additional 71,903 shares in the last quarter. Heard Capital LLC boosted its holdings in shares of AeroVironment by 48.4% during the 4th quarter. Heard Capital LLC now owns 722,150 shares of the aerospace company’s stock valued at $174,681,000 after purchasing an additional 235,685 shares during the last quarter. Finally, Van ECK Associates Corp grew its position in shares of AeroVironment by 17.4% during the third quarter. Van ECK Associates Corp now owns 686,273 shares of the aerospace company’s stock valued at $216,101,000 after purchasing an additional 101,713 shares in the last quarter. Institutional investors own 86.38% of the company’s stock.

AeroVironment News Roundup

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: AeroVironment won a new $97.4 million U.S. Army contract, which supports near‑term revenue visibility and reinforces defense-demand momentum. AeroVironment Bags $97.4 Million Army Contract As Defense Spending Momentum Builds
• Positive Sentiment: Management announced a ~ $30 million domestic manufacturing expansion (Albuquerque) to scale production — a positive signal that the company expects sustained, higher-volume orders. AeroVironment (AVAV) Rebounds 9.6% on Manufacturing Expansion
• Positive Sentiment: Jefferies reiterated a Buy rating (high target retained), offering analyst support that can limit downside from headline volatility. Jefferies Reiterates “Buy” Rating for AeroVironment
• Positive Sentiment: Company-provided updates on the Space Force SCAR work briefly lifted sentiment by suggesting the situation may be resolvable rather than a lost program. AeroVironment shares rise on update for Space Force SCAR contract
• Neutral Sentiment: AVAV will present at the J.P. Morgan Industrials Conference (March 18) — an opportunity for management to clarify guidance and contract progress (near‑term informational event). AeroVironment, Inc. to Present at J.P. Morgan 2026 Industrials Conference
• Neutral Sentiment: Several analysts trimmed price targets (RBC, Piper, Canaccord, Baird) but many kept buy/outperform views — signaling disagreement on near‑term execution risk vs. long‑term demand. Canaccord Slashes AeroVironment Target From $400 to $330 but Holds Buy
• Negative Sentiment: Raymond James downgraded AVAV to Underperform and commentary about the SCAR re‑competition triggered a sharp selloff earlier in the week — this downgrade is a primary driver of today’s weakness. AeroVironment shares dive after Raymond James downgrade
• Negative Sentiment: The U.S. Space Force reopened/rea llocated bidding on the ~ $1.4B SCAR program, creating execution and revenue timing uncertainty around AeroVironment’s largest recorded contract — the principal near‑term risk. AeroVironment Faces SCAR Contract Test While New Orders Support Outlook
• Negative Sentiment: Insider selling (director sold 250 shares) and a spate of analyst target cuts add to sentiment pressure even as institution ownership remains high. SEC Form 4 – Insider Sale

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.