AeroVironment (NASDAQ:AVAV) Shares Gap Up After Earnings Beat

AeroVironment, Inc. (NASDAQ:AVAV)’s stock price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $140.80, but opened at $146.77. AeroVironment shares last traded at $151.1660, with a volume of 2,293,096 shares trading hands.

The aerospace company reported $0.59 earnings per share for the quarter, topping the consensus estimate of $0.22 by $0.37. The company had revenue of $480.49 million for the quarter, compared to analysts’ expectations of $451.95 million. AeroVironment had a negative net margin of 9.00% and a positive return on equity of 3.71%. AeroVironment’s quarterly revenue was up 5.7% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.32 earnings per share. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS.

AeroVironment News Summary

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: AeroVironment reported adjusted fiscal Q1 2027 EPS of $0.59, well above estimates ranging from $0.22 to $0.30. Revenue reached a record $480.5 million, up 5.7% year over year and ahead of expectations. AeroVironment Announces Fiscal 2027 First Quarter Results
• Positive Sentiment: Funded backlog increased 37% year over year to a record $1.5 billion, with $700 million of bookings and a 1.4 book-to-bill ratio. Management said fiscal 2027 is off to a strong start. AeroVironment stock forecast as its revenue and backlog jumps
• Positive Sentiment: The company received its first international purchase order for its LOCUST directed-energy counter-drone system, valued at more than $50 million. Management believes laser weapons could become a major growth franchise. AV Secures First International Order for LOCUST Directed Energy Counter-Drone Systems
• Positive Sentiment: Needham and BTIG reaffirmed “buy” ratings with price targets of $225 and $205, respectively, implying substantial upside from recent trading levels.
• Neutral Sentiment: AeroVironment maintained its fiscal 2027 outlook, including revenue guidance around $2.1 billion to $2.2 billion and adjusted EPS guidance of $3.02 to $3.34. However, the revenue midpoint is slightly below analysts’ expectations. AeroVironment’s Q2 CY2026: Strong Sales
• Negative Sentiment: Investors remain concerned that the stock’s earlier valuation assumed faster growth, while execution risks and the company’s negative GAAP net margin could keep volatility elevated. The shares have declined sharply from their prior peak, and broader risk-off trading has also pressured high-beta drone stocks.
• Negative Sentiment: A law firm has announced an investigation into AeroVironment’s board for potential fiduciary-duty breaches, adding an overhang even though no wrongdoing has been established. Berger Montague Investigates AeroVironment’s Board

Wall Street Analysts Forecast Growth

AVAV has been the topic of several recent research reports. UBS Group upped their target price on shares of AeroVironment from $166.00 to $170.00 and gave the company a “neutral” rating in a research report on Thursday. Jefferies Financial Group reduced their price objective on AeroVironment from $305.00 to $229.00 and set a “buy” rating on the stock in a research note on Wednesday, July 1st. Wall Street Zen upgraded AeroVironment from a “sell” rating to a “hold” rating in a report on Sunday, July 5th. Stifel Nicolaus decreased their price target on AeroVironment from $315.00 to $220.00 and set a “buy” rating on the stock in a report on Tuesday, June 30th. Finally, Piper Sandler lowered their price target on AeroVironment from $248.00 to $235.00 and set an “overweight” rating for the company in a research report on Thursday, July 9th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, AeroVironment presently has an average rating of “Moderate Buy” and an average price target of $255.68.

Insider Transactions at AeroVironment

In other AeroVironment news, CAO Brian Shackley sold 205 shares of the firm’s stock in a transaction dated 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 Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen Page sold 250 shares of the firm’s stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $191.98, for a total transaction of $47,995.00. Following the completion of the sale, the director directly 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 position. 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 705 shares of company stock worth $132,979 over the last three months. 0.79% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On AeroVironment

A number of institutional investors and hedge funds have recently modified their holdings of AVAV. California State Teachers Retirement System increased its stake in AeroVironment by 16,307.2% in the 2nd quarter. California State Teachers Retirement System now owns 6,215,051 shares of the aerospace company’s stock worth $1,025,918,000 after buying an additional 6,177,171 shares during the period. BlackRock Inc. purchased a new stake in AeroVironment in the 2nd quarter valued at about $574,566,000. American Capital Management Inc. bought a new position in AeroVironment in the 2nd quarter worth about $69,745,000. Bank of America Corp DE bought a new position in AeroVironment in the 2nd quarter worth about $67,549,000. Finally, Norges Bank purchased a new position in shares of AeroVironment during the fourth quarter worth approximately $94,655,000. 86.38% of the stock is owned by institutional investors.

AeroVironment Trading Up 8.7%

The firm has a market capitalization of $7.78 billion, a PE ratio of -41.68, a price-to-earnings-growth ratio of 5.15 and a beta of 1.41. The stock’s 50-day moving average price is $159.17 and its 200 day moving average price is $179.83. The company has a debt-to-equity ratio of 0.17, a current ratio of 4.30 and a quick ratio of 3.59.

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.