AeroVironment (NASDAQ:AVAV) Trading Down 1.7% – What’s Next?

Shares of AeroVironment, Inc. (NASDAQ:AVAV) were down 1.7% during trading on Friday . The company traded as low as $143.30 and last traded at $144.65. Approximately 1,519,972 shares were traded during mid-day trading, a decline of 5% from the average daily volume of 1,599,706 shares. The stock had previously closed at $147.21.

AeroVironment News Roundup

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Landmark $464.8 million laser contract: The Army selected AeroVironment to deliver dozens of LOCUST X3 high-energy laser systems under its Enduring-High Energy Laser program. It is described as the first U.S. directed-energy weapon production award, moving the technology from testing toward field deployment and strengthening AVAV’s position in counter-drone defense. AV’s LOCUST Selected for Nearly $500 million Army Counter-UAS Contract
• Positive Sentiment: Improved revenue visibility and potential growth platform: The multiyear award could establish a new business line for directed-energy systems and expand AeroVironment’s broader counter-UAS opportunity. It may also support future technology development and additional defense orders. AeroVironment’s $465 Million Army Laser Win Expands Its Counter-Drone Opportunity
• Positive Sentiment: Analyst support remains intact: BTIG maintained its Buy rating and $205 price target following the contract announcement, suggesting the award reinforces the long-term investment case. AeroVironment’s New $465M LOCUST Laser Contract Reinforces Buy Rating
• Neutral Sentiment: Contract economics remain unclear: Investors still need evidence that the award will generate attractive margins and meaningful near-term earnings, rather than simply increasing backlog. Production ramp-up, delivery timing, and execution will be important factors. AeroVironment: The $465 Million LOCUST Win Needs Margin Proof
• Negative Sentiment: Valuation and execution concerns are limiting the reaction: Commentary remains cautious about competition, limited near-term upside, and whether AeroVironment can translate the laser award into sustained margin expansion. Those concerns are contributing to the stock’s decline even after the headline contract win. Jim Cramer’s AeroVironment Comments

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on AVAV shares. Jefferies Financial Group reduced their price objective on shares of AeroVironment from $305.00 to $229.00 and set a “buy” rating on the stock in a research note on Wednesday, July 1st. Weiss Ratings restated a “sell (d)” rating on shares of AeroVironment in a research report on Monday, June 8th. Canaccord Genuity Group cut their price target on shares of AeroVironment from $280.00 to $240.00 and set a “buy” rating for the company in a report on Friday, July 10th. Wedbush began coverage on shares of AeroVironment in a research report on Tuesday, June 30th. They set an “outperform” rating and a $250.00 price target on the stock. Finally, Piper Sandler decreased their price objective on shares of AeroVironment from $248.00 to $235.00 and set an “overweight” rating on the stock in a research note on Thursday, July 9th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $266.68.

AeroVironment Stock Performance

The company has a quick ratio of 3.59, a current ratio of 4.30 and a debt-to-equity ratio of 0.17. The stock has a market cap of $7.35 billion, a price-to-earnings ratio of -39.31, a P/E/G ratio of 5.00 and a beta of 1.41. The company has a 50 day simple moving average of $160.02 and a 200 day simple moving average of $182.91.

AeroVironment (NASDAQ:AVAV) last posted its quarterly earnings results on Monday, June 29th. The aerospace company reported $1.84 earnings per share for the quarter, beating analysts’ consensus estimates of $1.47 by $0.37. The company had revenue of $641.62 million for the quarter, compared to the consensus estimate of $555.97 million. AeroVironment had a negative net margin of 9.00% and a positive return on equity of 3.71%. The firm’s quarterly revenue was up 133.3% compared to the same quarter last year. During the same period last year, the company posted $1.61 EPS. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. As a group, equities research analysts forecast that AeroVironment, Inc. will post 3.2 EPS for the current year.

Insider Buying and Selling

In other AeroVironment news, Director Stephen Page sold 250 shares of the business’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $191.98, for a total transaction of $47,995.00. Following the sale, the director owned 48,503 shares of the company’s stock, valued at approximately $9,311,605.94. The trade was a 0.51% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Brian Shackley sold 205 shares of the company’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 transaction, the chief accounting officer owned 7,888 shares of the company’s stock, valued at $1,592,271.68. This trade represents a 2.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 705 shares of company stock worth $132,979 in the last 90 days. Company insiders own 0.79% of the company’s stock.

Hedge Funds Weigh In On AeroVironment

A number of institutional investors and hedge funds have recently bought and sold shares of AVAV. Sunbelt Securities Inc. acquired a new stake in shares of AeroVironment during the first quarter valued at about $25,000. Hilton Head Capital Partners LLC acquired a new position in shares of AeroVironment in the fourth quarter valued at approximately $26,000. Whittier Trust Co. of Nevada Inc. acquired a new position in shares of AeroVironment in the first quarter valued at approximately $28,000. Hazlett Burt & Watson Inc. raised its holdings in AeroVironment by 90.0% in the 4th quarter. Hazlett Burt & Watson Inc. now owns 133 shares of the aerospace company’s stock valued at $32,000 after buying an additional 63 shares during the last quarter. Finally, Toth Financial Advisory Corp bought a new position in AeroVironment in the 2nd quarter valued at approximately $33,000. 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.