AeroVironment (NASDAQ:AVAV) Trading 4.2% Higher – Should You Buy?

AeroVironment, Inc. (NASDAQ:AVAV)’s share price rose 4.2% during mid-day trading on Friday . The company traded as high as $235.98 and last traded at $229.80. Approximately 2,106,103 shares were traded during mid-day trading, an increase of 11% from the average daily volume of 1,904,910 shares. The stock had previously closed at $220.56.

More AeroVironment News

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: AeroVironment won a $97.4 million U.S. Army contract, reinforcing near-term revenue visibility and supporting demand for Switchblade and other tactical systems. This award is a concrete sales driver ahead of the company’s upcoming quarter. Benzinga: Army Contract
• Positive Sentiment: Sector tailwinds: Market commentary highlights AeroVironment as a core beneficiary of rising defense budgets and the shift to unmanned systems, which can attract buyers rotating into defense names. MarketBeat: Unmanned Profits
• Neutral Sentiment: Upcoming catalysts and investor access: management will present at the J.P. Morgan Industrials Conference (March 18) and Q3 earnings are due imminently — both could move the stock materially depending on guidance and margin commentary. Yahoo: JP Morgan Presentation
• Neutral Sentiment: Corporate items with limited market impact: the company adopted a new executive deferred-compensation plan (administrative). TipRanks: Deferred Comp Plan
• Neutral Sentiment: Reported short-interest data in these feeds appears inconsistent (shows zero), so short-covering is not a clear driver from the published figures.
• Negative Sentiment: Zacks downgraded AVAV from “hold” to “strong sell,” signaling downgrade-driven selling pressure from momentum or quant strategies. Zacks
• Negative Sentiment: Multiple analysts have cut forecasts or price targets (Robert W. Baird, Piper Sandler, RBC), increasing downside risk from lower sell-side expectations. Baird note Piper Sandler note RBC note
• Negative Sentiment: A shareholder class-action probe by Pomerantz introduces litigation risk and potential headline-driven volatility for investors. PR Newswire: Pomerantz Investigation
• Negative Sentiment: Earnings uncertainty: previews from Seeking Alpha and other outlets warn of margin/cost headwinds and specific program risks (the “1.4B problem”), which could pressure the stock if guidance or margins disappoint. Seeking Alpha: Q4 Preview
• Negative Sentiment: Recent sell-off commentary highlights a sizable pullback ahead of earnings and the potential for further downside if macro or company-specific headlines worsen. Yahoo: Reassessing AVAV Yahoo: Falls More Steeply

Wall Street Analyst Weigh In

Several research analysts have issued reports on AVAV shares. Raymond James Financial reaffirmed an “underperform” rating on shares of AeroVironment in a report on Monday, March 2nd. KeyCorp increased their price target on shares of AeroVironment from $285.00 to $330.00 and gave the company an “overweight” rating in a report on Wednesday, January 28th. Canaccord Genuity Group reduced their price target on shares of AeroVironment from $400.00 to $330.00 and set a “buy” rating for the company in a research report on Tuesday. Citigroup restated a “market outperform” rating on shares of AeroVironment in a report on Monday, January 12th. Finally, UBS Group started coverage on AeroVironment in a research report on Wednesday, February 18th. They issued a “neutral” rating and a $259.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, one has assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $348.33.

AeroVironment Stock Performance

The business’s fifty day moving average price is $284.15 and its 200-day moving average price is $293.03. The stock has a market cap of $11.47 billion, a PE ratio of -183.84, a P/E/G ratio of 3.64 and a beta of 1.26. The company has a debt-to-equity ratio of 0.16, a quick ratio of 4.29 and a current ratio of 5.08.

AeroVironment (NASDAQ:AVAV) last released its quarterly earnings data on Tuesday, December 9th. The aerospace company reported $0.44 earnings per share for the quarter, missing the consensus estimate 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 analysts’ expectations of $466.16 million. During the same period in the previous year, the firm earned $0.47 earnings per share. The firm’s revenue for the quarter was up 150.7% on a year-over-year basis. AeroVironment has set its FY 2026 guidance at 3.400-3.550 EPS. As a group, equities research analysts forecast that AeroVironment, Inc. will post 3.38 EPS for the current fiscal year.

Insider Buying and Selling at AeroVironment

In other news, CFO Kevin Patrick Mcdonnell sold 879 shares of the stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $267.60, for a total transaction of $235,220.40. Following the transaction, the chief financial officer directly owned 16,422 shares of the company’s stock, valued at $4,394,527.20. This represents a 5.08% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CAO Brian Charles Shackley sold 200 shares of the firm’s stock in a transaction on 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 owned 5,994 shares in the company, valued at approximately $1,504,014.48. This trade represents a 3.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 4,589 shares of company stock worth $1,428,910. Insiders own 0.81% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Groupama Asset Managment bought a new stake in shares of AeroVironment during the 3rd quarter valued at about $314,890,000. Vanguard Group Inc. lifted its stake in shares of AeroVironment by 14.3% in the 2nd 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. Norges Bank purchased a new position in shares of AeroVironment in the fourth quarter worth approximately $94,655,000. CIBC Private Wealth Group LLC boosted its holdings in shares of AeroVironment by 24,798.7% in the third quarter. CIBC Private Wealth Group LLC now owns 315,716 shares of the aerospace company’s stock worth $99,416,000 after buying an additional 314,448 shares during the last quarter. Finally, Invesco Ltd. grew its position in AeroVironment by 75.6% during the second quarter. Invesco Ltd. now owns 609,019 shares of the aerospace company’s stock valued at $173,540,000 after buying an additional 262,239 shares during the period. 86.38% of the stock is owned by hedge funds and other institutional investors.

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.