AeroVironment (NASDAQ:AVAV) Trading 4.4% Higher – Here’s What Happened

AeroVironment, Inc. (NASDAQ:AVAV) was up 4.4% on Thursday . The company traded as high as $167.76 and last traded at $163.38. 1,770,302 shares changed hands during mid-day trading, an increase of 5% from the average session volume of 1,690,711 shares. The stock had previously closed at $156.45.

Key Headlines Impacting AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: AeroVironment’s fiscal first-quarter results exceeded expectations, with revenue rising 5.7% year over year to $480.5 million and earnings of $0.59 per share versus the $0.22 consensus estimate. Management maintained fiscal 2027 EPS guidance of $3.02–$3.34. AeroVironment Earnings Call Highlights Growth Path
• Positive Sentiment: Funded backlog increased to approximately $1.5 billion from $1.2 billion at the end of April. Because these are firm, funded orders, the backlog offers revenue visibility and could support future guidance if converted on schedule. AeroVironment Has $1.5 Billion in Funded Backlog
• Positive Sentiment: Analysts remain constructive on AVAV’s expansion into a broader defense-technology platform spanning autonomous systems, counter-drone products and directed-energy technologies. The broader portfolio could increase contract opportunities and diversify growth. Broader Defense Technology Platform
• Neutral Sentiment: Analyst commentary is broadly bullish, but the positive outlook appears balanced against the stock’s elevated valuation and execution requirements. The market is also assessing whether AeroVironment can successfully integrate acquisitions and realize expected synergies. Analysts Are Bullish on AeroVironment
• Negative Sentiment: Recent analysis highlights the cancellation of the SCAR program and a material weakness in internal controls. These issues raise concerns about program execution, reporting reliability and the durability of the earnings outlook.
• Negative Sentiment: Director Stephen Page and Chief Accounting Officer Brian Shackley sold a combined 350 shares at $152.27 under pre-arranged Rule 10b5-1 plans. The sales were small relative to their remaining holdings, but may add modest pressure to sentiment. AeroVironment Insider Sales

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on AVAV. Needham & Company LLC reiterated a “buy” rating and set a $225.00 target price on shares of AeroVironment in a research report on Thursday, September 10th. Canaccord Genuity Group reduced their price target on shares of AeroVironment from $280.00 to $240.00 and set a “buy” rating for the company in a research report on Friday, July 10th. UBS Group lifted their price objective on AeroVironment from $166.00 to $170.00 and gave the stock a “neutral” rating in a report on Thursday, September 10th. Bank of America reduced their target price on AeroVironment from $225.00 to $185.00 and set a “buy” rating for the company in a report on Friday, September 11th. Finally, Piper Sandler reduced their target price on shares of AeroVironment from $248.00 to $235.00 and set an “overweight” rating for the company in a research report on Thursday, July 9th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, AeroVironment currently has an average rating of “Moderate Buy” and an average price target of $238.89.

AeroVironment Price Performance

The company has a fifty day moving average of $157.41 and a 200-day moving average of $175.28. The company has a current ratio of 4.26, a quick ratio of 3.33 and a debt-to-equity ratio of 0.17. The stock has a market cap of $8.13 billion, a PE ratio of -68.35, a P/E/G ratio of 5.57 and a beta of 1.41.

AeroVironment (NASDAQ:AVAV) last issued its quarterly earnings results on Wednesday, September 9th. The aerospace company reported $0.59 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.22 by $0.37. The company had revenue of $480.49 million for the quarter, compared to analyst estimates of $451.95 million. AeroVironment had a negative net margin of 5.77% and a positive return on equity of 4.04%. The business’s revenue for the quarter was up 5.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.32 earnings per share. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. Sell-side analysts expect that AeroVironment, Inc. will post 3.25 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CAO Brian Shackley sold 205 shares of the business’s stock in a transaction on Friday, August 14th. The stock was sold at an average price of $201.86, for a total transaction of $41,381.30. Following the completion of the transaction, the chief accounting officer directly owned 7,888 shares of the company’s stock, valued at $1,592,271.68. The trade was a 2.53% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen F. Page sold 250 shares of the stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $152.27, for a total transaction of $38,067.50. Following the completion of the sale, the director directly owned 48,253 shares in the company, valued at approximately $7,347,484.31. This represents a 0.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 805 shares of company stock worth $142,671. 0.79% of the stock is owned by company insiders.

Institutional Trading of AeroVironment

A number of hedge funds have recently added to or reduced their stakes in the stock. Norges Bank purchased a new position in shares of AeroVironment during the 4th quarter worth about $94,655,000. BlackRock Inc. acquired a new position in shares of AeroVironment during the second quarter worth $574,566,000. GW&K Investment Management LLC increased its position in shares of AeroVironment by 289.9% during the fourth quarter. GW&K Investment Management LLC now owns 222,055 shares of the aerospace company’s stock worth $53,714,000 after acquiring an additional 165,106 shares during the last quarter. MYDA Advisors LLC purchased a new position in shares of AeroVironment during the 4th quarter valued at approximately $3,628,000. Finally, Korea Investment CORP acquired a new stake in shares of AeroVironment in the 2nd quarter valued at about $54,901,000. 86.38% of the stock is owned by institutional investors and hedge funds.

About AeroVironment

AeroVironment, Inc is a defense technology company that develops and produces unmanned aircraft systems, loitering munitions, counter-unmanned aircraft systems and related robotic technologies. Its products are designed for intelligence, surveillance and reconnaissance, precision strike, force protection and tactical communications applications.

The company’s portfolio includes the Raven, Puma and Wasp small unmanned aircraft systems; the JUMP 20 vertical takeoff and landing aircraft; and the Switchblade family of loitering munitions.