AeroVironment (NASDAQ:AVAV) Shares Up 1% – Here’s Why

Shares of AeroVironment, Inc. (NASDAQ:AVAV) shot up 1% on Wednesday . The company traded as high as $157.38 and last traded at $150.35. Approximately 1,817,315 shares traded hands during mid-day trading, an increase of 8% from the average daily volume of 1,683,014 shares. The stock had previously closed at $148.84.

Key Headlines Impacting AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: AeroVironment announced a new $117.3 million U.S. Army contract for drone work, which reinforces demand for its products and supports the bull case for future revenue. Article Title
• Neutral Sentiment: Brokerage coverage remains constructive overall, with the stock receiving an average rating of “Moderate Buy”, suggesting analysts still see upside despite recent volatility. Article Title
• Negative Sentiment: Multiple law firms are urging investors to join or lead a securities class action against AeroVironment, creating legal overhang and potential headline risk for the shares. Article Title
• Negative Sentiment: The lawsuits allege possible misstatements tied to the SCAR program and other disclosures, which could pressure investor confidence until the claims are resolved. Article Title
• Negative Sentiment: Shares are also being compared unfavorably with peers in a broader drone-stock selloff, as investors question whether the sector has run out of fuel after a strong prior move. Article Title

Analysts Set New Price Targets

AVAV has been the subject of a number of research analyst reports. Piper Sandler decreased their target price on AeroVironment from $248.00 to $235.00 and set an “overweight” rating for the company in a research note on Thursday, July 9th. Wolfe Research cut AeroVironment to a “buy” rating in a report on Tuesday, June 30th. William Blair reiterated an “outperform” rating on shares of AeroVironment in a research report on Wednesday, July 15th. Clear Str raised AeroVironment to a “strong-buy” rating in a research note on Wednesday, April 29th. Finally, Stifel Nicolaus cut their price target on shares of AeroVironment from $315.00 to $220.00 and set a “buy” rating on the stock in a research note on Tuesday, June 30th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, AeroVironment presently has an average rating of “Moderate Buy” and an average price target of $266.68.

AeroVironment Trading Up 1.0%

The company has a market cap of $7.61 billion, a price-to-earnings ratio of -40.86, a P/E/G ratio of 4.85 and a beta of 1.39. The company has a debt-to-equity ratio of 0.17, a quick ratio of 3.59 and a current ratio of 4.30. The firm has a fifty day moving average price of $167.29 and a 200 day moving average price of $215.23.

AeroVironment (NASDAQ:AVAV) last released its quarterly earnings data on Monday, June 29th. The aerospace company reported $1.84 earnings per share for the quarter, topping the consensus estimate of $1.47 by $0.37. The company had revenue of $641.62 million for the quarter, compared to analyst estimates of $555.97 million. AeroVironment had a negative net margin of 9.00% and a positive return on equity of 3.71%. AeroVironment’s revenue for the quarter was up 133.3% compared to the same quarter last year. During the same period in the previous year, the business earned $1.61 EPS. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. As a group, equities analysts predict that AeroVironment, Inc. will post 3.26 EPS for the current fiscal year.

Insider Activity

In other news, Director Stephen F. Page sold 250 shares of the firm’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $174.41, for a total value of $43,602.50. Following the completion of the sale, the director directly owned 49,001 shares of the company’s stock, valued at $8,546,264.41. This trade represents a 0.51% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.81% of the stock is currently owned by insiders.

Institutional Investors Weigh In On AeroVironment

Several hedge funds have recently added to or reduced their stakes in the business. F m Investments LLC acquired a new position in shares of AeroVironment in the fourth quarter valued at approximately $1,775,000. Norges Bank acquired a new stake in AeroVironment during the 4th quarter worth approximately $94,655,000. MYDA Advisors LLC bought a new stake in AeroVironment in the 4th quarter valued at $3,628,000. GW&K Investment Management LLC grew its holdings in AeroVironment by 289.9% in the 4th quarter. GW&K Investment Management LLC now owns 222,055 shares of the aerospace company’s stock valued at $53,714,000 after buying an additional 165,106 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings in AeroVironment by 92.2% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 20,173 shares of the aerospace company’s stock valued at $5,168,000 after buying an additional 9,675 shares in the last quarter. 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.