AeroVironment (NASDAQ:AVAV) Stock Jumps 13.6% – Still a Buy?

AeroVironment, Inc. (NASDAQ:AVAV)’s share price was up 13.6% on Monday. The stock traded as high as $126.74 and last traded at $128.0820. Approximately 1,132,584 shares were traded during trading, a decline of 31% from the average daily volume of 1,648,874 shares. The stock had previously closed at $112.76.

Key Headlines Impacting AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: AeroVironment secured a multiyear IDIQ contract with a ceiling of $940 million, including an initial award of approximately $315 million for product deliveries and support through its AxS segment. The award provides near-term work and potential for additional orders under the contract. Contract announcement
• Positive Sentiment: A Zacks preview says AVAV’s earnings-surprise history and current estimate-related indicators point to potential for another quarterly earnings beat. This is an analyst-screening signal, not a company forecast or guarantee. Earnings preview
• Neutral Sentiment: Drone and defense stocks are broadly rallying, with the new AVAV award and an upcoming earnings report cited as sector catalysts. Drone and defense stocks report

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the stock. Oppenheimer started coverage on shares of AeroVironment in a report on Thursday, October 22nd. They issued an “outperform” rating and a $205.00 price objective for the company. Needham & Company LLC reissued a “buy” rating and set a $225.00 target price on shares of AeroVironment in a research note on Thursday, September 10th. The Goldman Sachs Group set a $285.00 price target on shares of AeroVironment in a research report on Thursday, September 17th. Citigroup reaffirmed a “market outperform” rating on shares of AeroVironment in a research note on Monday, November 2nd. Finally, Jefferies Financial Group reduced their price target on shares of AeroVironment from $229.00 to $204.00 and set a “buy” rating for the company in a research note on Wednesday, September 16th. Two research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $223.86.

AeroVironment Stock Performance

The firm’s 50 day simple moving average is $137.54 and its 200-day simple moving average is $180.95. The company has a market capitalization of $6.51 billion, a price-to-earnings ratio of -54.61, a P/E/G ratio of 1.77 and a beta of 1.42. The company has a debt-to-equity ratio of 0.17, a quick ratio of 3.33 and a current ratio of 4.26.

AeroVironment (NASDAQ:AVAV) last issued its 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. The business had revenue of $480.49 million during the quarter, compared to analysts’ expectations of $451.95 million. AeroVironment had a positive return on equity of 4.04% and a negative net margin of 5.77%. AeroVironment’s revenue was up 5.7% compared to the same quarter last year. During the same quarter last year, the firm posted $0.32 earnings per share. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. Analysts expect that AeroVironment, Inc. will post 3.26 EPS for the current year.

Insider Buying and Selling

In other AeroVironment news, Director Stephen Page sold 250 shares of the stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $152.27, for a total value of $38,067.50. Following the completion of the sale, the director owned 48,253 shares in the company, valued at $7,347,484.31. This represents a 0.52% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Brian Shackley sold 205 shares of AeroVironment stock in a transaction on Friday, August 14th. The shares were sold at an average price of $201.86, for a total transaction of $41,381.30. Following the sale, the chief accounting officer directly 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. 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 have sold 805 shares of company stock worth $142,671 over the last ninety days. 0.79% of the stock is currently owned by insiders.

Institutional Trading of AeroVironment

Several hedge funds and other institutional investors have recently modified their holdings of the company. Bessemer Group Inc. grew its position in AeroVironment by 144.2% during the 3rd quarter. Bessemer Group Inc. now owns 740 shares of the aerospace company’s stock worth $105,000 after acquiring an additional 437 shares during the last quarter. Hantz Financial Services Inc. increased its holdings in AeroVironment by 7.6% during the 3rd quarter. Hantz Financial Services Inc. now owns 1,527 shares of the aerospace company’s stock valued at $217,000 after purchasing an additional 108 shares in the last quarter. Royce & Associates LP raised its position in AeroVironment by 368.4% in the 3rd quarter. Royce & Associates LP now owns 39,423 shares of the aerospace company’s stock valued at $5,607,000 after purchasing an additional 31,006 shares during the last quarter. Danske Bank A S raised its position in AeroVironment by 13.7% in the 3rd quarter. Danske Bank A S now owns 3,012 shares of the aerospace company’s stock valued at $428,000 after purchasing an additional 364 shares during the last quarter. Finally, Condor Capital Management bought a new position in AeroVironment in the 3rd quarter valued at $2,572,000. 86.38% of the stock is currently owned by hedge funds and other institutional investors.

About AeroVironment

AeroVironment, Inc develops uncrewed aircraft systems and other technology for defense, government and commercial customers. Its products include small drones used for reconnaissance and surveillance, as well as the Switchblade family of loitering munitions. The company also provides counter-drone systems, training, support and related services.

Founded in 1971 by engineer and inventor Paul MacCready, AeroVironment has a history of developing aircraft and uncrewed systems. Its customers include U.S.