AeroVironment (NASDAQ:AVAV) Stock Price Down 2.5% Following Weak Earnings

AeroVironment, Inc. (NASDAQ:AVAV) shares traded down 2.5% on Tuesday following a weaker than expected earnings announcement. The company traded as low as $220.90 and last traded at $221.57. 1,952,699 shares changed hands during trading, an increase of 3% from the average session volume of 1,902,694 shares. The stock had previously closed at $227.29.

The aerospace company reported $0.64 EPS for the quarter, missing analysts’ consensus estimates of $0.72 by ($0.08). AeroVironment had a positive return on equity of 3.42% and a negative net margin of 5.08%.The company had revenue of $408.05 million during the quarter, compared to analyst estimates of $487.94 million. AeroVironment has set its FY 2026 guidance at 2.750-3.100 EPS.

AeroVironment News Summary

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Ongoing product and capability expansion in counter‑UAS and RF/AI sensing positions AeroVironment to benefit from rising military demand for C‑UAS/ISR systems. How Is AeroVironment Expanding Its Counter-Drone Defense Capabilities?
• Positive Sentiment: Company commentary (TipRanks update) highlights management addressing a contract (SCAR) termination and outlining future opportunities — may calm some investor concerns about single‑contract risk. AeroVironment Addresses SCAR Termination and Future Opportunities
• Neutral Sentiment: Company filed its formal Q3 results and slide deck (official release) — provides the detailed numbers and management commentary for investors to review. Q3 Press Release / Slide Deck
• Neutral Sentiment: Broader market commentary notes AeroVironment is a beneficiary of geopolitical tensions and increased interest in defense tech, which supports a positive medium‑term demand thesis despite near‑term noise. AeroVironment Earnings Will Be Key Amid Drone-Based Fighting
• Negative Sentiment: Q3 results missed expectations: EPS $0.64 vs. ~$0.72 consensus and revenue $408.1M vs. ~$488M consensus — the miss and lower margins explain immediate selling pressure. AeroVironment Stock Drops After Q3 Earnings
• Negative Sentiment: Management cut FY‑2026 guidance to $2.75–$3.10 adj. EPS (prior $3.40–$3.55) and guided revenue to ~$1.9–$2.0B vs. Street expectations near $2.0B — the guidance shortfall is a primary reason the stock is down. AeroVironment Cuts Guidance, Says Timing Issues Hurt Results
• Negative Sentiment: Investor class‑action interest: Pomerantz announced an investigation into AVAV investors, which can add legal overhang and increase short‑term volatility. Pomerantz Investor Alert

Analysts Set New Price Targets

Several research analysts have weighed in on AVAV shares. JPMorgan Chase & Co. assumed coverage on shares of AeroVironment in a report on Tuesday, February 17th. They set an “overweight” rating and a $320.00 price objective on the stock. Robert W. Baird dropped their target price on shares of AeroVironment from $350.00 to $260.00 and set an “outperform” rating on the stock in a research note on Tuesday, March 3rd. Weiss Ratings lowered AeroVironment from a “hold (c-)” rating to a “sell (d)” rating in a report on Monday, February 9th. Piper Sandler dropped their target price on AeroVironment from $391.00 to $290.00 and set an “overweight” rating on the stock in a research report on Tuesday, March 3rd. Finally, BTIG Research restated a “buy” rating and issued a $415.00 price objective on shares of AeroVironment in a research report on Monday, January 26th. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, one has given a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, AeroVironment has a consensus rating of “Moderate Buy” and an average target price of $348.33.

Insider Transactions at AeroVironment

In other AeroVironment news, CAO Brian Charles Shackley sold 200 shares of the company’s stock in a transaction that occurred on Tuesday, December 30th. The stock was sold at an average price of $250.92, for a total transaction of $50,184.00. Following the transaction, the chief accounting officer owned 5,994 shares in the company, valued at approximately $1,504,014.48. This represents a 3.23% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Stephen F. Page sold 250 shares of the company’s stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $300.00, for a total transaction of $75,000.00. Following the completion of the sale, the director directly owned 50,001 shares in the company, valued at $15,000,300. This represents a 0.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 4,589 shares of company stock valued at $1,428,910. Company insiders own 0.81% of the company’s stock.

Institutional Trading of AeroVironment

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AVAV. N.E.W. Advisory Services LLC increased its stake in 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 buying an additional 30 shares in the last quarter. Rothschild Investment LLC increased its holdings in shares of AeroVironment by 7.8% in the 3rd quarter. Rothschild Investment LLC now owns 498 shares of the aerospace company’s stock worth $157,000 after buying an additional 36 shares during the last quarter. Legacy Bridge LLC boosted its holdings in shares of AeroVironment by 1.0% in the 4th quarter. Legacy Bridge LLC now owns 4,046 shares of the aerospace company’s stock worth $979,000 after purchasing an additional 39 shares during the period. NewEdge Wealth LLC grew its holdings in AeroVironment by 1.1% during the 4th quarter. NewEdge Wealth LLC now owns 3,709 shares of the aerospace company’s stock valued at $897,000 after purchasing an additional 39 shares during the last quarter. Finally, J.W. Cole Advisors Inc. raised its holdings in shares of AeroVironment by 3.7% in the fourth quarter. J.W. Cole Advisors Inc. now owns 1,081 shares of the aerospace company’s stock worth $261,000 after buying an additional 39 shares during the period. 86.38% of the stock is owned by hedge funds and other institutional investors.

AeroVironment Stock Performance

The company has a quick ratio of 4.29, a current ratio of 5.08 and a debt-to-equity ratio of 0.16. The firm has a market cap of $11.06 billion, a PE ratio of -177.26, a price-to-earnings-growth ratio of 3.64 and a beta of 1.26. The business has a 50 day simple moving average of $283.71 and a two-hundred day simple moving average of $293.41.

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.