AeroVironment (NASDAQ:AVAV) Shares Gap Up – Still a Buy?

AeroVironment, Inc. (NASDAQ:AVAV)’s share price gapped up before the market opened on Friday . The stock had previously closed at $189.43, but opened at $201.51. AeroVironment shares last traded at $190.9730, with a volume of 521,473 shares changing hands.

Trending Headlines about AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: President Donald Trump imposed tariffs of up to 100% on imported heavy, industrial and military-grade drones and key components. The measures are intended to reduce reliance on foreign supply chains and encourage U.S. production, potentially improving AeroVironment’s competitive position and long-term demand. Trump administration imposes sweeping tariffs on foreign drone imports
• Positive Sentiment: Shares are participating in a rally across U.S. drone and counter-drone companies, including Kratos Defense, Red Cat and Ondas, as investors anticipate less competition from foreign suppliers. AeroVironment, Ondas, and Kratos Rising as Trump Levies Tariffs on Drone Imports
• Positive Sentiment: Recent operating catalysts continue to support the investment case, including a reported $117.3 million Army contract and a new autonomous-systems partnership. AeroVironment also recently exceeded quarterly earnings and revenue expectations, with revenue increasing sharply year over year. AVAV Outperforms Industry in the Past Month
• Neutral Sentiment: Valuation remains a key issue. One analysis estimates the shares are near discounted-cash-flow fair value, while traditional multiples appear expensive after a roughly 105% three-year gain. AeroVironment Stock May Be Near Fair Value
• Negative Sentiment: Another updated model reduced estimated fair value from approximately $251.93 to $225.77 per share, citing execution risks, heavier investment needs and elevated expectations surrounding contract growth. This suggests some analysts believe the recent rally has already priced in considerable optimism. AeroVironment Stock Sees Fair Value Cut

Analyst Upgrades and Downgrades

AVAV has been the subject of several recent analyst reports. KeyCorp reissued an “overweight” rating on shares of AeroVironment in a research note on Tuesday, July 28th. Canaccord Genuity Group cut their price objective on shares of AeroVironment from $280.00 to $240.00 and set a “buy” rating on the stock in a research note on Friday, July 10th. Wolfe Research downgraded shares of 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. Finally, Citizens Jmp decreased their target price on shares of AeroVironment from $350.00 to $230.00 and set a “market outperform” rating for the company in a research report on Friday, July 10th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, AeroVironment currently has an average rating of “Moderate Buy” and an average price target of $266.68.

AeroVironment Trading Up 2.4%

The business has a 50 day simple moving average of $162.47 and a 200-day simple moving average of $195.07. 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 stock has a market capitalization of $9.81 billion, a P/E ratio of -52.43, a price-to-earnings-growth ratio of 6.59 and a beta of 1.41.

AeroVironment (NASDAQ:AVAV) last posted its quarterly earnings data on Monday, June 29th. The aerospace company reported $1.84 EPS for the quarter, topping 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 positive return on equity of 3.71% and a negative net margin of 9.00%.The company’s quarterly revenue was up 133.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.61 EPS. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. On average, analysts predict that AeroVironment, Inc. will post 3.26 EPS for the current year.

Insider Transactions at AeroVironment

In other AeroVironment news, Director Stephen F. Page sold 250 shares of the business’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $174.41, for a total value of $43,602.50. Following the sale, the director directly owned 49,001 shares in the company, valued at approximately $8,546,264.41. The trade was a 0.51% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.81% of the stock is currently owned by insiders.

Hedge Funds Weigh In On AeroVironment

Several hedge funds have recently made changes to their positions in AVAV. NewEdge Wealth LLC grew its position in AeroVironment by 1.1% in the fourth quarter. NewEdge Wealth LLC now owns 3,709 shares of the aerospace company’s stock worth $897,000 after buying an additional 39 shares during the last quarter. J.W. Cole Advisors Inc. raised its position in shares of AeroVironment by 3.7% during the fourth quarter. J.W. Cole Advisors Inc. now owns 1,081 shares of the aerospace company’s stock worth $261,000 after purchasing an additional 39 shares during the period. Parkside Financial Bank & Trust lifted its holdings in shares of AeroVironment by 29.7% during the fourth quarter. Parkside Financial Bank & Trust now owns 188 shares of the aerospace company’s stock valued at $45,000 after purchasing an additional 43 shares during the last quarter. Family Legacy Inc. lifted its holdings in shares of AeroVironment by 2.2% during the fourth quarter. Family Legacy Inc. now owns 2,326 shares of the aerospace company’s stock valued at $563,000 after purchasing an additional 51 shares during the last quarter. Finally, TD Waterhouse Canada Inc. boosted its position in shares of AeroVironment by 73.8% in the 4th quarter. TD Waterhouse Canada Inc. now owns 139 shares of the aerospace company’s stock valued at $34,000 after purchasing an additional 59 shares during the period. 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.