AeroVironment (NASDAQ:AVAV) Trading Down 5.4% – Here’s What Happened

Shares of AeroVironment, Inc. (NASDAQ:AVAV) dropped 5.4% on Wednesday . The stock traded as low as $139.77 and last traded at $140.80. Approximately 4,430,739 shares traded hands during mid-day trading, an increase of 175% from the average session volume of 1,613,943 shares. The stock had previously closed at $148.78.

More AeroVironment News

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

Analyst Ratings Changes

Several research firms recently commented on AVAV. KeyCorp reiterated an “overweight” rating on shares of AeroVironment in a report on Tuesday, July 28th. Stifel Nicolaus decreased their price objective on shares of AeroVironment from $315.00 to $220.00 and set a “buy” rating for the company in a report on Tuesday, June 30th. Bank of America dropped their target price on shares of AeroVironment from $450.00 to $225.00 in a report on Thursday, July 16th. Raymond James Financial upgraded shares of AeroVironment from a “market perform” rating to an “outperform” rating and set a $210.00 target price for the company in a research note on Thursday, July 16th. Finally, Wedbush assumed coverage on AeroVironment in a research note on Tuesday, June 30th. They issued an “outperform” rating and a $250.00 price target on the stock. Two research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating, two 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 a consensus price target of $255.47.

AeroVironment Stock Performance

The firm has a market cap of $7.16 billion, a PE ratio of -38.26, a PEG ratio of 5.00 and a beta of 1.41. The business has a 50-day simple moving average of $159.81 and a 200 day simple moving average of $180.82. The company has a debt-to-equity ratio of 0.17, a current ratio of 4.30 and a quick ratio of 3.59.

AeroVironment (NASDAQ:AVAV) last announced its quarterly earnings results on Wednesday, September 9th. The aerospace company reported $0.59 EPS for the quarter, topping the consensus estimate of $0.22 by $0.37. AeroVironment had a negative net margin of 9.00% and a positive return on equity of 3.71%. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. Equities research analysts forecast that AeroVironment, Inc. will post 3.2 EPS for the current year.

Insider Activity

In related news, CAO Brian Shackley sold 205 shares of the company’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 directly owned 7,888 shares of the company’s stock, valued at $1,592,271.68. This represents a 2.53% decrease in their ownership of the stock. The transaction 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 F. Page sold 250 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $174.41, for a total transaction of $43,602.50. Following the completion of the sale, the director directly owned 49,001 shares of the company’s stock, valued at $8,546,264.41. 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 in the last ninety days. 0.79% of the stock is currently owned by insiders.

Institutional Investors Weigh In On AeroVironment

Hedge funds have recently made changes to their positions in the stock. Sunbelt Securities Inc. bought a new stake in AeroVironment during the first quarter valued at about $25,000. Hilton Head Capital Partners LLC purchased a new stake in shares of AeroVironment during the fourth quarter valued at about $26,000. Whittier Trust Co. of Nevada Inc. purchased a new stake in shares of AeroVironment during the first quarter valued at about $28,000. Hazlett Burt & Watson Inc. boosted its holdings in shares of AeroVironment by 90.0% in the 4th quarter. Hazlett Burt & Watson Inc. now owns 133 shares of the aerospace company’s stock valued at $32,000 after buying an additional 63 shares in the last quarter. Finally, Toth Financial Advisory Corp bought a new stake in shares of AeroVironment in the 2nd quarter valued at about $33,000. 86.38% of the stock is currently owned by hedge funds and other 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.