AeroVironment (NASDAQ:AVAV) Posts Earnings Results, Beats Estimates By $0.37 EPS

AeroVironment (NASDAQ:AVAV) issued its quarterly earnings data on Wednesday. The aerospace company reported $0.59 earnings per share for the quarter, beating analysts’ consensus estimates of $0.22 by $0.37, Zacks reports. AeroVironment had a positive return on equity of 3.71% and a negative net margin of 9.00%. AeroVironment updated its FY 2027 guidance to 3.020-3.340 EPS.

AeroVironment Price Performance

Shares of AeroVironment stock traded down $7.98 during trading on Wednesday, reaching $140.80. The company’s stock had a trading volume of 4,609,772 shares, compared to its average volume of 1,617,406. The stock has a 50-day moving average price of $159.81 and a two-hundred day moving average price of $180.82. The company has a current ratio of 4.30, a quick ratio of 3.59 and a debt-to-equity ratio of 0.17. AeroVironment has a one year low of $135.20 and a one year high of $417.86. The stock has a market capitalization of $7.16 billion, a P/E ratio of -38.26, a price-to-earnings-growth ratio of 5.00 and a beta of 1.41.

Key Headlines Impacting AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: AeroVironment reportedly secured its first international order for the LOCUST counter-drone laser system. The deal expands the company’s international customer base and supports the long-term growth case for its directed-energy and counter-UAS products. AeroVironment Nabs First International Order For LOCUST Counter-Drone Laser System
• Neutral Sentiment: Wall Street is focused on tonight’s earnings release, with consensus first-quarter EPS estimated at approximately $0.25, or about 22% below the year-earlier result. Investors will look for revenue growth, order momentum and management’s comments on the full-year outlook. What Wall Street Expects from Earnings Today
• Negative Sentiment: Analysts have reduced their estimates 11 times over the past 90 days, while reports say AeroVironment has missed expectations in three consecutive quarters. This has raised the risk that another disappointment or weaker guidance could further damage investor confidence. Stock Faces Earnings Test Amid Declining Analyst Expectations
• Negative Sentiment: Drone stocks broadly sold off without a clear company-specific catalyst as investors rotated away from riskier, high-beta names. AeroVironment’s roughly 41% year-to-date decline and elevated earnings uncertainty made it particularly vulnerable to the risk-off trading. Drone Stocks Slide as Risk-Off Sentiment Hits High-Beta Names
• Negative Sentiment: Berger Montague announced an investigation into AeroVironment’s board over potential breaches of fiduciary duty. The inquiry is at an early stage, but it adds legal and governance overhang ahead of the earnings report. Berger Montague Board Investigation

Insider Transactions at AeroVironment

In related news, CAO Brian Shackley sold 205 shares of the firm’s stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $201.86, for a total value of $41,381.30. Following the completion of the sale, 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. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen F. Page sold 250 shares of the firm’s stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $191.98, for a total transaction of $47,995.00. Following the completion of the transaction, the director directly owned 48,503 shares in the company, valued at $9,311,605.94. This trade represents a 0.51% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 705 shares of company stock worth $132,979. Insiders own 0.79% of the company’s stock.

Hedge Funds Weigh In On AeroVironment

Several large investors have recently bought and sold shares of AVAV. Pacer Advisors Inc. boosted its holdings in AeroVironment by 45.5% during the fourth quarter. Pacer Advisors Inc. now owns 6,084 shares of the aerospace company’s stock worth $1,472,000 after buying an additional 1,902 shares during the last quarter. Compound Planning Inc. boosted its stake in AeroVironment by 230.2% during the 4th quarter. Compound Planning Inc. now owns 2,506 shares of the aerospace company’s stock worth $606,000 after acquiring an additional 1,747 shares during the last quarter. Alpine Woods Capital Investors LLC bought a new position in AeroVironment during the 4th quarter worth approximately $815,000. Vident Advisory LLC grew its holdings in AeroVironment by 19.6% during the fourth quarter. Vident Advisory LLC now owns 83,531 shares of the aerospace company’s stock valued at $20,205,000 after purchasing an additional 13,713 shares during the period. Finally, State of Tennessee Department of Treasury grew its holdings in AeroVironment by 10.5% during the fourth quarter. State of Tennessee Department of Treasury now owns 14,187 shares of the aerospace company’s stock valued at $3,432,000 after purchasing an additional 1,343 shares during the period. 86.38% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities analysts have commented on the company. Weiss Ratings reiterated a “sell (d)” rating on shares of AeroVironment in a report on Friday. Bank of America lowered their target price on shares of AeroVironment from $450.00 to $225.00 in a research note on Thursday, July 16th. Needham & Company LLC reissued a “buy” rating and set a $225.00 target price on shares of AeroVironment in a research report on Thursday, July 9th. Wall Street Zen upgraded shares of AeroVironment from a “sell” rating to a “hold” rating in a report on Sunday, July 5th. Finally, Piper Sandler lowered their price target on AeroVironment from $248.00 to $235.00 and set an “overweight” rating on the stock in a research report on Thursday, July 9th. Two equities 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 issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $262.74.

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.