AeroVironment (NASDAQ:AVAV) Shares Up 13.6% – Time to Buy?

AeroVironment, Inc. (NASDAQ:AVAV) shares shot up 13.6% during mid-day trading on Monday. The stock traded as high as $126.74 and last traded at $128.0820. Approximately 1,132,584 shares changed hands during mid-day trading, a decline of 31% from the average daily volume of 1,648,874 shares. The stock had previously closed at $112.76.

Key Stories Impacting AeroVironment

These are some of the AVAV stories that stood out recently:

• Positive Sentiment: AeroVironment received a $405 million international order for LOCUST X3 high-energy laser systems to strengthen counter-drone defenses in the Middle East. The order signals demand for the company’s directed-energy weapons. Article: AV Awarded Landmark $405 Million International Order for LOCUST X3 Laser Defense Systems
• Positive Sentiment: The company also secured a $315 million initial award under a new U.S. indefinite-delivery, indefinite-quantity contract with a $940 million ceiling. Together, the initial awards total $720 million and broaden AeroVironment’s defense customer base. Article: AeroVironment Lands $720 Million in Defense Awards
• Neutral Sentiment: Both programs are multi-year, so the awards support longer-term demand but do not mean the full contract amounts will be recognized as revenue immediately. The U.S. contract’s $940 million figure is a ceiling, not a guaranteed award. Article: Should Major Defense Orders Require Action From AeroVironment Investors?

Analysts Set New Price Targets

A number of analysts recently weighed in on AVAV shares. William Blair restated an “outperform” rating on shares of AeroVironment in a research note on Wednesday, July 15th. Raymond James Financial upgraded shares of AeroVironment from a “market perform” rating to an “outperform” rating and set a $210.00 price target for the company in a report on Thursday, July 16th. BTIG Research reaffirmed a “buy” rating and set a $205.00 price objective on shares of AeroVironment in a research report on Thursday, September 10th. Needham & Company LLC reiterated a “buy” rating and set a $225.00 target price on shares of AeroVironment in a research note on Thursday, September 10th. Finally, Oppenheimer began coverage on AeroVironment in a report on Thursday, October 22nd. They issued an “outperform” rating and a $205.00 target price on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, AeroVironment has an average rating of “Moderate Buy” and an average price target of $223.86.

AeroVironment Stock Performance

The firm has a 50 day moving average of $136.63 and a two-hundred day moving average of $179.04. The company has a debt-to-equity ratio of 0.17, a current ratio of 4.26 and a quick ratio of 3.33. The stock has a market cap of $6.32 billion, a PE ratio of -53.16, a PEG ratio of 1.99 and a beta of 1.42.

AeroVironment (NASDAQ:AVAV) last announced its quarterly earnings results on Wednesday, September 9th. The aerospace company reported $0.59 EPS for the quarter, beating the consensus estimate of $0.22 by $0.37. AeroVironment had a negative net margin of 5.77% and a positive return on equity of 4.04%. The company had revenue of $480.49 million for the quarter, compared to analyst estimates of $451.95 million. During the same period in the prior year, the firm posted $0.32 earnings per share. The firm’s revenue was up 5.7% on a year-over-year basis. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. Research analysts predict that AeroVironment, Inc. will post 3.26 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CAO Brian Shackley sold 205 shares of AeroVironment stock in a transaction on Friday, August 14th. The shares were sold at an average price of $201.86, for a total transaction of $41,381.30. Following the sale, the chief accounting officer directly owned 7,888 shares in the company, valued at $1,592,271.68. This trade represents a 2.53% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen Page sold 250 shares of AeroVironment stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $152.27, for a total transaction of $38,067.50. Following the sale, the director owned 48,253 shares in the company, valued at $7,347,484.31. This represents a 0.52% 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 a total of 805 shares of company stock worth $142,671 over the last ninety days. Insiders own 0.79% of the company’s stock.

Institutional Trading of AeroVironment

A number of hedge funds and other institutional investors have recently made changes to their positions in AVAV. Pinnacle Associates Ltd. lifted its stake in AeroVironment by 29.6% in the third quarter. Pinnacle Associates Ltd. now owns 191,312 shares of the aerospace company’s stock valued at $27,208,000 after buying an additional 43,667 shares during the last quarter. BlackRock Inc. purchased a new position in shares of AeroVironment during the second quarter worth approximately $574,566,000. Korea Investment CORP purchased a new position in shares of AeroVironment during the second quarter worth approximately $54,901,000. Tocqueville Asset Management L.P. acquired a new position in shares of AeroVironment in the 2nd quarter valued at $25,815,000. Finally, Canal Insurance CO increased its holdings in shares of AeroVironment by 14.3% in the 3rd quarter. Canal Insurance CO now owns 80,000 shares of the aerospace company’s stock valued at $11,378,000 after acquiring an additional 10,000 shares during the period. Institutional investors and hedge funds own 86.38% of the company’s stock.

AeroVironment Company Profile

AeroVironment, Inc. develops uncrewed aircraft systems and other technology for defense, government and commercial customers. Its products include small drones used for reconnaissance and surveillance, as well as the Switchblade family of loitering munitions. The company also provides counter-drone systems, training, support and related services. Founded in 1971 by engineer and inventor Paul MacCready, AeroVironment has a history of developing aircraft and uncrewed systems. Its customers include U.S. government and military organizations, allied nations and commercial users.