AeroVironment (NASDAQ:AVAV) Trading Down 1.1% – Should You Sell?

AeroVironment, Inc. (NASDAQ:AVAV)’s share price was down 1.1% during mid-day trading on Monday . The company traded as low as $216.56 and last traded at $227.29. Approximately 2,075,814 shares traded hands during trading, an increase of 9% from the average daily volume of 1,903,629 shares. The stock had previously closed at $229.80.

Key Stories Impacting AeroVironment

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.

Wall Street Analyst Weigh In

AVAV has been the topic of a number of recent analyst reports. The Goldman Sachs Group lowered their target price on shares of AeroVironment from $486.00 to $429.00 and set a “buy” rating on the stock in a report on Friday, December 12th. Citizens Jmp decreased their price objective on shares of AeroVironment from $400.00 to $350.00 and set a “market outperform” rating for the company in a research report on Wednesday. BNP Paribas Exane initiated coverage on shares of AeroVironment in a research report on Tuesday, November 18th. They issued an “outperform” rating and a $355.00 price objective for the company. Stifel Nicolaus lowered their price objective on shares of AeroVironment from $389.00 to $315.00 and set a “buy” rating on the stock in a research note on Wednesday. Finally, Zacks Research cut shares of AeroVironment from a “hold” rating to a “strong sell” rating in a report on Wednesday, March 4th. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, one has issued a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, AeroVironment presently has an average rating of “Moderate Buy” and a consensus target price of $329.89.

AeroVironment Trading Down 6.2%

The company has a market cap of $10.37 billion, a price-to-earnings ratio of -166.18, a PEG 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 business’s 50 day moving average price is $283.26 and its 200-day moving average price is $293.28.

AeroVironment (NASDAQ:AVAV) last announced its quarterly earnings results on Tuesday, March 10th. The aerospace company reported $0.64 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 analyst estimates of $487.94 million. AeroVironment had a negative net margin of 5.08% and a positive return on equity of 3.42%. The firm’s quarterly revenue was up 143.4% on a year-over-year basis. During the same quarter last year, the company posted $0.30 EPS. AeroVironment has set its FY 2026 guidance at 2.750-3.100 EPS. On average, equities analysts anticipate that AeroVironment, Inc. will post 3.38 EPS for the current fiscal year.

Insider Activity

In other news, Director Stephen F. Page sold 1,000 shares of the stock in a transaction that occurred on Thursday, January 15th. The stock was sold at an average price of $377.62, for a total transaction of $377,620.00. Following the transaction, the director owned 51,001 shares in the company, valued at approximately $19,258,997.62. This trade represents a 1.92% 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 firm’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 directly owned 5,994 shares in the company, valued at $1,504,014.48. This represents a 3.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 4,474 shares of company stock valued at $1,390,404. 0.81% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of AVAV. United Services Automobile Association acquired a new stake in shares of AeroVironment in the 1st quarter valued at approximately $225,000. Schnieders Capital Management LLC. acquired a new position in shares of AeroVironment during the second quarter worth $285,000. Wedbush Securities Inc. bought a new position in shares of AeroVironment in the 2nd quarter valued at $273,000. Parkside Financial Bank & Trust boosted its holdings in shares of AeroVironment by 108.4% during the 2nd quarter. Parkside Financial Bank & Trust now owns 346 shares of the aerospace company’s stock valued at $99,000 after acquiring an additional 180 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. boosted its holdings in shares of AeroVironment by 7.6% during the 2nd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 10,156 shares of the aerospace company’s stock valued at $2,894,000 after acquiring an additional 718 shares in the last quarter. 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.