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

AeroVironment, Inc. (NASDAQ:AVAV)’s stock price dropped 1.7% on Friday . The stock traded as low as $143.30 and last traded at $144.65. 1,519,972 shares were traded during trading, a decline of 5% from the average session volume of 1,599,706 shares. The stock had previously closed at $147.21.

Trending Headlines about AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Historic $464.8 million laser contract: The U.S. Army selected AeroVironment to produce dozens of LOCUST X3 high-energy laser systems under its Enduring-High Energy Laser program. The award is reportedly the first U.S. production contract for directed-energy weapons, moving the technology from testing into battlefield deployment. AV’s LOCUST Selected for Nearly $500 million Army Counter-UAS Contract
• Positive Sentiment: Expands the counter-drone opportunity: The 30-kilowatt, vehicle-compatible LOCUST X3 system strengthens AeroVironment’s position in counter-UAS defense, an area of growing military demand. The multiyear program could add a new revenue platform alongside the company’s Switchblade and unmanned-aircraft businesses. AeroVironment’s $465 Million Army Laser Win Expands Its Counter-Drone Opportunity
• Positive Sentiment: Analyst support remains favorable: BTIG maintained a Buy rating and a $205 price target, while other coverage described the contract as supportive of scalable growth and potential multiyear margin expansion. The award also builds on AeroVironment’s approximately $1.2 billion backlog. AeroVironment’s New $465M LOCUST Laser Contract Reinforces Buy Rating
• Neutral Sentiment: Execution and earnings are next: AeroVironment is scheduled to report fiscal first-quarter 2027 results on September 9 after the market closes. Investors will likely focus on contract timing, production capacity and whether the laser award changes revenue and profit expectations.
• Negative Sentiment: Valuation and profitability remain concerns: Despite strong recent revenue growth, the company remains unprofitable on a trailing basis and trades at a demanding forward earnings multiple. Production will also require investment, including a previously announced $30 million Albuquerque facility expansion, leaving limited room for execution delays or weaker margins.

Analyst Upgrades and Downgrades

AVAV has been the subject of a number of research analyst reports. Piper Sandler cut their price target on AeroVironment from $248.00 to $235.00 and set an “overweight” rating for the company in a report on Thursday, July 9th. Canaccord Genuity Group dropped their target price on shares of AeroVironment from $280.00 to $240.00 and set a “buy” rating on the stock in a research report on Friday, July 10th. Wall Street Zen raised shares of AeroVironment from a “sell” rating to a “hold” rating in a report on Sunday, July 5th. BTIG Research restated a “buy” rating and issued a $205.00 price target on shares of AeroVironment in a research report on Thursday, July 9th. Finally, Stifel Nicolaus dropped their price objective on shares of AeroVironment from $315.00 to $220.00 and set a “buy” rating on the stock in a report on Tuesday, June 30th. Two investment 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 assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $266.68.

AeroVironment Price Performance

The company has a market cap of $7.35 billion, a price-to-earnings ratio of -39.31, a price-to-earnings-growth ratio of 4.96 and a beta of 1.41. The company has a current ratio of 4.30, a quick ratio of 3.59 and a debt-to-equity ratio of 0.17. The company has a fifty day moving average price of $159.88 and a two-hundred day moving average price of $183.18.

AeroVironment (NASDAQ:AVAV) last issued its earnings results on Monday, June 29th. The aerospace company reported $1.84 EPS for the quarter, beating analysts’ consensus estimates of $1.47 by $0.37. The business had revenue of $641.62 million during the quarter, compared to analyst estimates of $555.97 million. AeroVironment had a positive return on equity of 3.71% and a negative net margin of 9.00%.AeroVironment’s revenue was up 133.3% on a year-over-year basis. During the same period in the prior year, the company posted $1.61 earnings per share. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. As a group, equities research analysts anticipate that AeroVironment, Inc. will post 3.25 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Stephen F. Page sold 250 shares of the stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $191.98, for a total value of $47,995.00. Following the completion of the transaction, the director directly owned 48,503 shares of the company’s stock, valued at approximately $9,311,605.94. This represents a 0.51% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible 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 firm’s stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $201.86, for a total value 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 position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 705 shares of company stock worth $132,979 over the last ninety days. Company insiders own 0.79% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in AVAV. United Services Automobile Association acquired a new stake in shares of AeroVironment during the 1st quarter worth about $225,000. Schnieders Capital Management LLC. acquired a new position in AeroVironment in the second quarter valued at about $285,000. American Century Companies Inc. bought a new stake in AeroVironment during the second quarter worth about $633,000. EverSource Wealth Advisors LLC increased its holdings in shares of AeroVironment by 5,200.0% during the second quarter. EverSource Wealth Advisors LLC now owns 159 shares of the aerospace company’s stock worth $45,000 after buying an additional 156 shares in the last quarter. Finally, Marshall Wace LLP increased its holdings in shares of AeroVironment by 0.4% during the second quarter. Marshall Wace LLP now owns 24,188 shares of the aerospace company’s stock worth $6,892,000 after buying an additional 108 shares in the last quarter. 86.38% of the stock is owned by institutional investors.

AeroVironment Company Profile

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.