AeroVironment (NASDAQ:AVAV) Shares Down 1.6% – Should You Sell?

AeroVironment, Inc. (NASDAQ:AVAV) shares traded down 1.6% during trading on Wednesday . The stock traded as low as $139.10 and last traded at $141.22. Approximately 1,303,744 shares changed hands during trading, a decline of 23% from the average daily volume of 1,684,432 shares. The stock had previously closed at $143.47.

Key Stories Impacting AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: William Blair maintained a Buy rating on AeroVironment, citing a possible $500 million Army laser contract that could improve the company’s long-term growth outlook. Article Title
• Neutral Sentiment: Several law firms reiterated reminders about the July 27, 2026 lead-plaintiff deadline in the ongoing securities class action, keeping the litigation process in view but adding no new substantive case developments. Article Title
• Neutral Sentiment: Additional legal notices from other firms also highlighted the same class-action deadline, reinforcing that the lawsuit remains active and widely marketed to investors. Article Title
• Negative Sentiment: The biggest drag on sentiment remains the newly filed securities fraud class action, which alleges investors were harmed after AeroVironment’s share price dropped sharply following the SCAR contract cancellation/reassessment issue. Article Title

Analysts Set New Price Targets

Several research firms have recently weighed in on AVAV. UBS Group restated a “buy” rating on shares of AeroVironment in a research note on Thursday, July 9th. BTIG Research reissued a “buy” rating and issued a $205.00 target price on shares of AeroVironment in a research report on Thursday, July 9th. Piper Sandler lowered their target price on shares of AeroVironment from $248.00 to $235.00 and set an “overweight” rating on the stock in a research note on Thursday, July 9th. Clear Str raised shares of AeroVironment to a “strong-buy” rating in a report on Wednesday, April 29th. Finally, William Blair reiterated an “outperform” rating on shares of AeroVironment in a research note on Wednesday. Two equities research 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, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $266.68.

AeroVironment Stock Performance

The company has a market cap of $7.15 billion, a PE ratio of -38.37, a PEG ratio of 2.14 and a beta of 1.39. The company has a debt-to-equity ratio of 0.17, a current ratio of 4.30 and a quick ratio of 3.59. The business has a 50-day moving average of $169.73 and a 200 day moving average of $218.94.

AeroVironment (NASDAQ:AVAV) last announced its earnings results on Monday, June 29th. The aerospace company reported $1.84 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.47 by $0.37. The business had revenue of $641.62 million for the quarter, compared to analysts’ expectations of $555.97 million. AeroVironment had a positive return on equity of 3.71% and a negative net margin of 9.00%.The business’s revenue for the quarter was up 133.3% on a year-over-year basis. During the same period last year, the firm posted $1.61 earnings per share. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. Equities research analysts anticipate that AeroVironment, Inc. will post 3.4 EPS for the current fiscal year.

Insider Transactions at AeroVironment

In other news, Director Stephen F. Page sold 250 shares of AeroVironment stock in a transaction on Monday, June 15th. The shares were sold at an average price of $174.41, for a total transaction of $43,602.50. Following the transaction, the director owned 49,001 shares in the company, valued at $8,546,264.41. This trade represents a 0.51% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.81% of the company’s stock.

Institutional Investors Weigh In On AeroVironment

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Tema ETFs LLC lifted its position in shares of AeroVironment by 140.0% during the 2nd quarter. Tema ETFs LLC now owns 648 shares of the aerospace company’s stock valued at $107,000 after buying an additional 378 shares in the last quarter. Canvas Wealth Advisors LLC raised its stake in AeroVironment by 47.4% during the 2nd quarter. Canvas Wealth Advisors LLC now owns 13,392 shares of the aerospace company’s stock worth $2,211,000 after acquiring an additional 4,309 shares during the period. Vista Investment Partners LLC lifted its holdings in AeroVironment by 22.3% during the second quarter. Vista Investment Partners LLC now owns 16,451 shares of the aerospace company’s stock valued at $2,716,000 after purchasing an additional 2,996 shares in the last quarter. Tactive Advisors LLC purchased a new position in AeroVironment during the second quarter valued at approximately $260,000. Finally, Hennion & Walsh Asset Management Inc. boosted its position in shares of AeroVironment by 25.7% in the second quarter. Hennion & Walsh Asset Management Inc. now owns 18,115 shares of the aerospace company’s stock worth $2,990,000 after purchasing an additional 3,698 shares during the period. 86.38% of the stock is currently owned by hedge funds and other institutional investors.

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.