AeroVironment (NASDAQ:AVAV) Stock Price Down 6.9% – Here’s Why

AeroVironment, Inc. (NASDAQ:AVAV) shares traded down 6.9% during trading on Tuesday . The company traded as low as $168.33 and last traded at $167.8750. 780,666 shares traded hands during trading, a decline of 53% from the average session volume of 1,652,682 shares. The stock had previously closed at $180.26.

Key Stories Impacting AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: AeroVironment won a U.S. Army prototype agreement for its Switchblade® 400 under the LASSO program — the award positions Switchblade 400 as a key component of the Army’s next‑generation loitering munition effort, supporting near‑term development, testing and potential follow‑on production opportunities. U.S. Army Selects AV’s Switchblade 400 for LASSO Program
• Positive Sentiment: AVAV announced expanded awards and new products in the loitering‑munition / counter‑UAS category, including the Halo_Shield modular counter‑UAS system and continued emphasis on AI/autonomy — developments that enhance addressable markets (military + critical infrastructure) amid rising Pentagon drone spending. AeroVironment Expands Loitering Munition And Counter UAS Ecosystem With New Awards
• Neutral Sentiment: Market coverage notes AVAV could rebound from a short losing streak as defense budgets shift toward drones and counter‑UAS, but headlines are mixed and short‑term price moves appear sentiment‑driven. AVAV stock looks to snap 2-day losing streak on new Army deal
• Neutral Sentiment: Coverage calling AVAV a Wall Street favorite or highlighting strong secular defense themes can support longer‑term investor interest, but analyst praise is mixed and should be weighed against execution and backlog details. 1 of Wall Street’s Favorite Stock with Competitive Advantages
• Neutral Sentiment: Industry pieces tying AI/vision tech and provisional patent activity to defense spending highlight structural tailwinds; relevance to AVAV depends on product/IP overlap and timing of commercialization. AI Defense Spending Surge Puts a Premium on Proprietary Vision Tech
• Negative Sentiment: Near‑term weakness is driven by a recent quarterly earnings miss (EPS and revenue below consensus) and a negative net margin — investors may be concerned about margin recovery and timing of contract revenues.
• Negative Sentiment: Technical/valuation headwinds: AVAV is well below its 50‑ and 200‑day moving averages and has shown large volatility versus its 1‑year range, which can amplify downside on negative news.

Analyst Ratings Changes

A number of analysts have commented on the stock. Canaccord Genuity Group cut their price target on shares of AeroVironment from $330.00 to $300.00 and set a “buy” rating on the stock in a research report on Thursday, March 12th. Robert W. Baird cut their price target on shares of AeroVironment from $260.00 to $235.00 and set an “outperform” rating on the stock in a research report on Wednesday, March 11th. Royal Bank Of Canada cut their price target on shares of AeroVironment from $325.00 to $250.00 and set an “outperform” rating on the stock in a research report on Wednesday, March 11th. Raymond James Financial raised shares of AeroVironment from an “underperform” rating to a “market perform” rating in a research report on Monday, March 23rd. Finally, Weiss Ratings cut shares of AeroVironment from a “hold (c-)” rating to a “sell (d)” rating in a research report on Monday, February 9th. Two analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, two have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, AeroVironment currently has a consensus rating of “Moderate Buy” and a consensus target price of $318.78.

AeroVironment Stock Down 7.5%

The firm’s fifty day moving average price is $207.62 and its two-hundred day moving average price is $267.39. The stock has a market cap of $8.32 billion, a price-to-earnings ratio of -38.41, a price-to-earnings-growth ratio of 2.54 and a beta of 1.35. The company has a debt-to-equity ratio of 0.17, a current ratio of 5.51 and a quick ratio of 4.54.

AeroVironment (NASDAQ:AVAV) last announced its quarterly earnings data on Tuesday, March 10th. The aerospace company reported $0.64 earnings per share for the quarter, missing the consensus estimate of $0.68 by ($0.04). AeroVironment had a negative net margin of 13.93% and a positive return on equity of 3.26%. The company had revenue of $408.05 million for the quarter, compared to analyst estimates of $487.94 million. During the same quarter in the prior year, the company posted $0.30 EPS. AeroVironment’s revenue for the quarter was up 143.4% on a year-over-year basis. AeroVironment has set its FY 2026 guidance at 2.750-3.100 EPS. Sell-side analysts forecast that AeroVironment, Inc. will post 2.94 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Kevin Patrick Mcdonnell sold 879 shares of the company’s stock in a transaction dated Tuesday, February 10th. The shares were sold at an average price of $267.60, for a total transaction of $235,220.40. Following the transaction, the chief financial officer owned 16,422 shares in the company, valued at approximately $4,394,527.20. This represents a 5.08% 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. Also, CAO Brian Charles Shackley sold 200 shares of the company’s stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $212.52, for a total transaction of $42,504.00. Following the transaction, the chief accounting officer owned 5,794 shares in the company, valued at $1,231,340.88. This represents a 3.34% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 2,975 shares of company stock worth $740,324. Company insiders own 0.81% of the company’s stock.

Hedge Funds Weigh In On AeroVironment

Several institutional investors have recently made changes to their positions in AVAV. N.E.W. Advisory Services LLC raised its holdings in shares of AeroVironment by 60.0% in the 3rd quarter. N.E.W. Advisory Services LLC now owns 80 shares of the aerospace company’s stock worth $25,000 after acquiring an additional 30 shares during the last quarter. TD Waterhouse Canada Inc. raised its holdings in shares of 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 last quarter. AlphaQuest LLC acquired a new stake in shares of AeroVironment in the 3rd quarter worth about $25,000. Steigerwald Gordon & Koch Inc. acquired a new stake in shares of AeroVironment in the 3rd quarter worth about $31,000. Finally, Vermillion Wealth Management Inc. acquired a new stake in shares of AeroVironment in the 3rd quarter worth about $31,000. Institutional investors and hedge funds own 86.38% of the company’s stock.

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.