AeroVironment (NASDAQ:AVAV) Trading Down 6.2% After Earnings Miss

AeroVironment, Inc. (NASDAQ:AVAV)’s stock price fell 6.2% during trading on Wednesday following a dissappointing earnings announcement. The stock traded as low as $199.37 and last traded at $207.73. 5,213,174 shares changed hands during trading, an increase of 162% from the average session volume of 1,992,220 shares. The stock had previously closed at $221.57.

The aerospace company reported $0.64 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.72 by ($0.08). The company had revenue of $408.05 million during the quarter, compared to analysts’ expectations of $487.94 million. AeroVironment had a positive return on equity of 3.42% and a negative net margin of 5.08%.The firm’s quarterly revenue was up 143.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.30 EPS. AeroVironment has set its FY 2026 guidance at 2.750-3.100 EPS.

Key AeroVironment News

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Very strong top‑line growth and product demand — Revenue jumped ~143% YoY and management highlighted continued demand and strategic progress (BlueHalo integration, scaling). Read More.
• Positive Sentiment: Healthy balance sheet and institutional positioning — MarketBeat notes a solid balance sheet, sizeable institutional ownership and a view that the pullback may present a value opportunity for long‑term buyers. Read More.
• Neutral Sentiment: Analysts trimming targets but largely keeping ratings — Multiple firms cut price targets (Stifel, RBC, UBS, KeyCorp, Needham, Baird) while some maintained Buy/Outperform ratings, signaling disagreement on how much the setbacks change the longer‑term thesis. Read More.
• Negative Sentiment: Earnings and guidance miss — Q3 adjusted EPS of $0.64 and revenue of $408M fell short of expectations; FY2026 EPS guidance was lowered to $2.75–$3.10 (from $3.40–$3.55), spurring the immediate decline. Read More.
• Negative Sentiment: SCAR/Space Force contract uncertainty — Reports of a stop‑work order and potential termination tied to the BADGER SCAR/Space Force program (cited as material) add near‑term revenue and backlog risk. Read More.
• Negative Sentiment: Immediate market reaction and pressure — Pre‑market and after‑hours trading showed sharp declines and higher volume as investors repriced the stock on the miss and guidance cut. Read More.
• Negative Sentiment: Legal scrutiny and insider activity — A Pomerantz investor probe was announced and the CFO disclosed a small share sale (industry watchers tend to view these as additional near‑term negatives, albeit of varying significance). Read More. • Read More.

Analyst Ratings Changes

A number of analysts recently issued reports on AVAV shares. Piper Sandler reduced their price objective on AeroVironment from $391.00 to $290.00 and set an “overweight” rating for the company in a research report on Tuesday, March 3rd. Weiss Ratings downgraded AeroVironment from a “hold (c-)” rating to a “sell (d)” rating in a research note on Monday, February 9th. Robert W. Baird reduced their price target on AeroVironment from $260.00 to $235.00 and set an “outperform” rating for the company in a report on Wednesday. UBS Group lowered their price target on AeroVironment from $259.00 to $236.00 and set a “neutral” rating for the company in a research note on Wednesday. Finally, BNP Paribas Exane began coverage on AeroVironment in a report on Tuesday, November 18th. They issued an “outperform” rating and a $355.00 price objective on the stock. One investment 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 stock. According to data from MarketBeat.com, AeroVironment has a consensus rating of “Moderate Buy” and an average price target of $329.89.

Insiders Place Their Bets

In other news, Director Stephen F. Page sold 1,000 shares of the company’s stock in a transaction dated Thursday, January 15th. The stock was sold at an average price of $377.62, for a total transaction of $377,620.00. Following the completion of the sale, the director owned 51,001 shares in the company, valued at approximately $19,258,997.62. This represents a 1.92% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO Kevin Patrick Mcdonnell sold 999 shares of the stock in a transaction dated Monday, January 12th. The shares were sold at an average price of $367.60, for a total value of $367,232.40. Following the transaction, the chief financial officer directly owned 17,301 shares in the company, valued at approximately $6,359,847.60. This represents a 5.46% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 4,474 shares of company stock valued at $1,390,404 over the last three months. 0.81% of the stock is currently owned by insiders.

Institutional Investors Weigh In On AeroVironment

Large investors have recently added to or reduced their stakes in the stock. N.E.W. Advisory Services LLC raised its position in shares of AeroVironment by 60.0% in the third quarter. N.E.W. Advisory Services LLC now owns 80 shares of the aerospace company’s stock valued at $25,000 after purchasing an additional 30 shares during the period. AlphaQuest LLC bought a new stake in shares of AeroVironment during the 3rd quarter worth $25,000. Tema Etfs LLC acquired a new position in AeroVironment in the 4th quarter valued at $26,000. Hilton Head Capital Partners LLC acquired a new position in AeroVironment in the 4th quarter valued at $26,000. Finally, TD Waterhouse Canada Inc. raised its holdings in AeroVironment by 100.0% in the 3rd quarter. TD Waterhouse Canada Inc. now owns 80 shares of the aerospace company’s stock worth $28,000 after acquiring an additional 40 shares during the period. Institutional investors own 86.38% of the company’s stock.

AeroVironment Stock Down 6.2%

The stock has a market cap of $10.37 billion, a P/E ratio of -166.18, a P/E/G ratio of 3.60 and a beta of 1.26. The company has a current ratio of 5.08, a quick ratio of 4.29 and a debt-to-equity ratio of 0.16. The firm’s fifty day moving average is $283.26 and its 200 day moving average is $293.28.

About AeroVironment

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.