AeroVironment (NASDAQ:AVAV) Stock Price Down 4.9% – Time to Sell?

AeroVironment, Inc. (NASDAQ:AVAV)’s share price dropped 4.9% during trading on Tuesday . The company traded as low as $194.80 and last traded at $196.18. Approximately 1,239,747 shares traded hands during trading, a decline of 36% from the average daily volume of 1,951,946 shares. The stock had previously closed at $206.27.

AeroVironment News Summary

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Large Army contract and recent sales momentum: AVAV won a ~$117M Army award for P550 drones, which boosted revenue visibility and helped drive a sharp one-day gain earlier in the week. AeroVironment (AVAV) Stock Jumps 5% Following Major Army Deal and Rating Boost
• Positive Sentiment: Analyst upgrade: Raymond James raised AVAV from Underperform to Market Perform, reducing downside risk from a valuation reset and supporting buyer interest. Raymond James upgrades AeroVironment (AVAV)
• Positive Sentiment: New product launch with long-term upside: AVAV unveiled LOCUST® X3, a third‑generation, modular high-energy laser system (AI-enabled, scalable to 20–35+kW) that expands its directed-energy portfolio and could drive multi-year defense spending opportunities. AV Unveils LOCUST® X3
• Neutral Sentiment: Macro/geopolitical context remains mixed: Defense-sector moves have been sensitive to evolving geopolitical headlines (e.g., pauses in planned military action), producing short-term volatility that can amplify company-specific moves. Orion, nLIGHT, Quest Resource, AeroVironment, and Northwest Pipe Shares Are Soaring
• Neutral Sentiment: Short-interest data in recent reporting was inconclusive/odd (reported zeros), so it doesn’t offer clear explanatory power for the move.
• Negative Sentiment: Profit-taking/rotation after recent rally: the stock pared gains following the prior day’s jump, a common reaction after rapid moves higher. AeroVironment (AVAV) Stock Drops Despite Unveiling Locust X3 Laser Defense System
• Negative Sentiment: Ongoing concerns about near-term fundamentals and valuation: recent guidance and previous quarterly results left some investors cautious (consensus sees a reset in expectations), which can amplify downside when buyers step back. AeroVironment stock price sinks as risky patterns emerge

Analysts Set New Price Targets

AVAV has been the topic of several research reports. Canaccord Genuity Group reduced 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. Piper Sandler dropped their price objective on shares of AeroVironment from $391.00 to $290.00 and set an “overweight” rating for the company in a report on Tuesday, March 3rd. Needham & Company LLC cut their target price on shares of AeroVironment from $450.00 to $400.00 and set a “buy” rating on the stock in a research note on Wednesday, March 11th. Jefferies Financial Group reduced their target price on shares of AeroVironment from $390.00 to $305.00 and set a “buy” rating on the stock in a report on Thursday, March 12th. Finally, KeyCorp decreased their price target on shares of AeroVironment from $330.00 to $295.00 and set an “overweight” rating for the company in a research report on Wednesday, March 11th. One investment analyst has 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, AeroVironment presently has a consensus rating of “Moderate Buy” and an average target price of $318.78.

AeroVironment Trading Down 4.9%

The company has a quick ratio of 4.54, a current ratio of 5.51 and a debt-to-equity ratio of 0.17. The stock has a market capitalization of $9.80 billion, a PE ratio of -45.20, a PEG ratio of 3.44 and a beta of 1.26. The business’s 50-day moving average is $266.04 and its two-hundred day moving average is $291.32.

AeroVironment (NASDAQ:AVAV) last posted its earnings results 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). The firm had revenue of $408.05 million during the quarter, compared to analysts’ expectations of $487.94 million. AeroVironment had a negative net margin of 13.93% and a positive return on equity of 3.26%. The firm’s revenue for the quarter was up 143.4% on a year-over-year basis. During the same period in the previous year, the firm posted $0.30 earnings per share. AeroVironment has set its FY 2026 guidance at 2.750-3.100 EPS. On average, analysts anticipate that AeroVironment, Inc. will post 3.38 earnings per share for the current fiscal year.

Insider Activity at AeroVironment

In related news, CFO Kevin Patrick Mcdonnell sold 396 shares of the stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $224.55, for a total transaction of $88,921.80. Following the completion of the sale, the chief financial officer owned 16,026 shares in the company, valued at $3,598,638.30. This represents a 2.41% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Brian Charles Shackley sold 200 shares of the firm’s stock in a transaction on Monday, March 16th. The stock was sold at an average price of $212.52, for a total transaction of $42,504.00. Following the transaction, the chief accounting officer directly owned 5,794 shares in the company, valued at $1,231,340.88. The trade was a 3.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 4,924 shares of company stock worth $1,486,038 in the last 90 days. 0.81% of the stock is owned by insiders.

Hedge Funds Weigh In On AeroVironment

Institutional investors have recently added to or reduced their stakes in the stock. N.E.W. Advisory Services LLC lifted its position in AeroVironment by 60.0% during 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 period. TD Waterhouse Canada Inc. raised its stake in shares of AeroVironment by 100.0% during the third quarter. TD Waterhouse Canada Inc. now owns 80 shares of the aerospace company’s stock worth $28,000 after purchasing an additional 40 shares during the last quarter. AlphaQuest LLC purchased a new stake in shares of AeroVironment during the third quarter worth approximately $25,000. Vermillion Wealth Management Inc. acquired a new stake in shares of AeroVironment during the third quarter worth $31,000. Finally, Steigerwald Gordon & Koch Inc. acquired a new stake in shares of AeroVironment during the third quarter worth $31,000. Institutional investors and hedge funds own 86.38% of the company’s stock.

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.