AeroVironment (NASDAQ:AVAV) Shares Gap Up – Here’s Why

AeroVironment, Inc. (NASDAQ:AVAV)’s stock price gapped up before the market opened on Tuesday . The stock had previously closed at $243.87, but opened at $254.95. AeroVironment shares last traded at $261.43, with a volume of 537,106 shares.

AeroVironment News Roundup

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: J.P. Morgan initiated coverage with an Overweight/Buy stance, arguing the recent sell‑off creates a buying opportunity and signaling high‑profile analyst support that can attract flows and momentum. J.P. Morgan Initiates at Buy
• Positive Sentiment: Analyst and commentary pieces highlight AVAV’s BlueHalo deal, LOCUST laser deployments and a large funded backlog (~$1.1B funded, ~$3B unfunded cited in coverage), underpinning revenue visibility for 2026 and supporting higher fair‑value estimates. Riding The Drone Boom
• Positive Sentiment: Several buy/upgrade notes and valuation writeups (including DCF upside arguments after a ~30% pullback) are circulating, reinforcing the narrative that the stock has attractive upside vs. recent levels. 30% Selloff Creates a Buy Opportunity
• Neutral Sentiment: UBS initiated coverage with a Neutral rating — this tempers the unilateral bullish view by some firms and may moderate momentum if investors weigh it more heavily. UBS Initiates Neutral
• Neutral Sentiment: Reported short‑interest figures show “0 shares / NaN” changes across filings — most likely a reporting anomaly and not an actionable signal for immediate selling pressure. (No clear short‑pressure headwind from reported data.)
• Neutral Sentiment: Management will present at the Citizens Technology Conference (CFO Kevin McDonnell, March 2); investor access to management color is helpful for longer‑term conviction but is event‑driven rather than an instant price catalyst. Conference Presentation
• Negative Sentiment: Insider selling: Director Stephen F. Page sold 500 shares at about $254.95. The transaction is small relative to his total holdings and company float, but some investors view any insider sale as a modest negative signal. SEC Form 4

Analyst Ratings Changes

A number of equities research analysts have recently commented on AVAV shares. Needham & Company LLC reiterated a “buy” rating and set a $450.00 price objective on shares of AeroVironment in a research report on Friday, January 30th. Citigroup reaffirmed a “market outperform” rating on shares of AeroVironment in a research report on Monday, January 12th. The Goldman Sachs Group reduced their target price on AeroVironment from $486.00 to $429.00 and set a “buy” rating for the company in a report on Friday, December 12th. Weiss Ratings cut AeroVironment from a “hold (c-)” rating to a “sell (d)” rating in a research note on Monday, February 9th. Finally, Canaccord Genuity Group set a $400.00 price objective on AeroVironment in a report on Wednesday, December 10th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, AeroVironment has an average rating of “Moderate Buy” and an average price target of $367.00.

AeroVironment Trading Up 6.1%

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 $14.06 billion, a price-to-earnings ratio of -225.34, a price-to-earnings-growth ratio of 3.93 and a beta of 1.23. The company’s 50 day simple moving average is $284.24 and its two-hundred day simple moving average is $293.60.

AeroVironment (NASDAQ:AVAV) last issued its 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 company had revenue of $472.51 million for the quarter, compared to analyst estimates of $466.16 million. During the same period last year, the business earned $0.47 EPS. The company’s quarterly revenue was up 150.7% on a year-over-year basis. AeroVironment has set its FY 2026 guidance at 3.400-3.550 EPS. Research analysts expect that AeroVironment, Inc. will post 3.38 EPS for the current fiscal year.

Insider Transactions at AeroVironment

In other AeroVironment news, CAO Brian Charles Shackley sold 200 shares of the business’s stock in a transaction that occurred on Tuesday, December 30th. The shares were sold at an average price of $250.92, for a total value of $50,184.00. Following the completion of the sale, the chief accounting officer directly owned 5,994 shares of the company’s stock, valued at $1,504,014.48. The trade was a 3.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Stephen F. Page sold 500 shares of the stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $254.95, for a total transaction of $127,475.00. Following the transaction, the director owned 50,501 shares in the company, valued at approximately $12,875,229.95. This trade represents a 0.98% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 4,089 shares of company stock valued at $1,285,160 in the last three months. Corporate insiders own 0.81% of the company’s stock.

Institutional Investors Weigh In On AeroVironment

Large investors have recently bought and sold shares of the business. Mcguire Capital Advisors Inc. acquired a new position in AeroVironment during the fourth quarter worth $1,675,000. Compound Planning Inc. boosted its stake in shares of AeroVironment by 230.2% during the 4th quarter. Compound Planning Inc. now owns 2,506 shares of the aerospace company’s stock worth $606,000 after acquiring an additional 1,747 shares in the last quarter. Alpine Woods Capital Investors LLC bought a new stake in shares of AeroVironment during the 4th quarter worth about $815,000. Vident Advisory LLC increased its holdings in shares of AeroVironment by 19.6% during the 4th quarter. Vident Advisory LLC now owns 83,531 shares of the aerospace company’s stock valued at $20,205,000 after acquiring an additional 13,713 shares during the last quarter. Finally, State of Tennessee Department of Treasury raised its stake in shares of AeroVironment by 10.5% in the 4th quarter. State of Tennessee Department of Treasury now owns 14,187 shares of the aerospace company’s stock valued at $3,432,000 after acquiring an additional 1,343 shares in the last quarter. 86.38% of the stock is currently owned by institutional investors.

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.