AeroVironment (NASDAQ:AVAV) Shares Down 2.6% After Analyst Downgrade

AeroVironment, Inc. (NASDAQ:AVAV) shares dropped 2.6% during trading on Thursday after Zacks Research downgraded the stock from a hold rating to a strong sell rating. The company traded as low as $213.00 and last traded at $220.56. Approximately 2,352,423 shares traded hands during trading, an increase of 24% from the average daily volume of 1,896,276 shares. The stock had previously closed at $226.48.

Other analysts also recently issued research reports about the stock. Needham & Company LLC reaffirmed a “buy” rating and set a $450.00 price target on shares of AeroVironment in a research note on Friday, January 30th. Royal Bank Of Canada dropped their price objective on AeroVironment from $375.00 to $325.00 and set an “outperform” rating on the stock in a research note on Tuesday. Robert W. Baird decreased their target price on AeroVironment from $350.00 to $260.00 and set an “outperform” rating for the company in a research report on Tuesday. Jefferies Financial Group reiterated a “buy” rating and issued a $390.00 target price on shares of AeroVironment in a report on Monday, March 2nd. Finally, Cantor Fitzgerald dropped their price target on AeroVironment from $335.00 to $315.00 and set an “overweight” rating on the stock in a research report on Wednesday, December 10th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, one has issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $348.33.

Insider Activity

In other news, CFO Kevin Patrick Mcdonnell sold 999 shares of the stock in a transaction that occurred on Monday, January 12th. The shares were sold at an average price of $367.60, for a total transaction of $367,232.40. Following the transaction, the chief financial officer directly owned 17,301 shares in the company, valued at approximately $6,359,847.60. This trade represents a 5.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Brian Charles Shackley sold 200 shares of AeroVironment stock in a transaction that occurred on Tuesday, December 30th. The shares were sold at an average price of $250.92, for a total transaction of $50,184.00. Following the transaction, the chief accounting officer directly owned 5,994 shares in the company, valued at approximately $1,504,014.48. The trade was a 3.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 4,589 shares of company stock worth $1,428,910. Corporate insiders own 0.81% of the company’s stock.

More AeroVironment News

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: AeroVironment won a $97.4 million U.S. Army contract, reinforcing near-term revenue visibility and supporting demand for Switchblade and other tactical systems. This award is a concrete sales driver ahead of the company’s upcoming quarter. Benzinga: Army Contract
• Positive Sentiment: Sector tailwinds: Market commentary highlights AeroVironment as a core beneficiary of rising defense budgets and the shift to unmanned systems, which can attract buyers rotating into defense names. MarketBeat: Unmanned Profits
• Neutral Sentiment: Upcoming catalysts and investor access: management will present at the J.P. Morgan Industrials Conference (March 18) and Q3 earnings are due imminently — both could move the stock materially depending on guidance and margin commentary. Yahoo: JP Morgan Presentation
• Neutral Sentiment: Corporate items with limited market impact: the company adopted a new executive deferred-compensation plan (administrative). TipRanks: Deferred Comp Plan
• Neutral Sentiment: Reported short-interest data in these feeds appears inconsistent (shows zero), so short-covering is not a clear driver from the published figures.
• Negative Sentiment: Zacks downgraded AVAV from “hold” to “strong sell,” signaling downgrade-driven selling pressure from momentum or quant strategies. Zacks
• Negative Sentiment: Multiple analysts have cut forecasts or price targets (Robert W. Baird, Piper Sandler, RBC), increasing downside risk from lower sell-side expectations. Baird note Piper Sandler note RBC note
• Negative Sentiment: A shareholder class-action probe by Pomerantz introduces litigation risk and potential headline-driven volatility for investors. PR Newswire: Pomerantz Investigation
• Negative Sentiment: Earnings uncertainty: previews from Seeking Alpha and other outlets warn of margin/cost headwinds and specific program risks (the “1.4B problem”), which could pressure the stock if guidance or margins disappoint. Seeking Alpha: Q4 Preview
• Negative Sentiment: Recent sell-off commentary highlights a sizable pullback ahead of earnings and the potential for further downside if macro or company-specific headlines worsen. Yahoo: Reassessing AVAV Yahoo: Falls More Steeply

Institutional Investors Weigh In On AeroVironment

Hedge funds have recently made changes to their positions in the stock. N.E.W. Advisory Services LLC grew its stake in shares of AeroVironment by 60.0% during the third quarter. N.E.W. Advisory Services LLC now owns 80 shares of the aerospace company’s stock worth $25,000 after acquiring an additional 30 shares during the last quarter. TD Waterhouse Canada Inc. raised its position in shares of AeroVironment by 100.0% in the 3rd quarter. TD Waterhouse Canada Inc. now owns 80 shares of the aerospace company’s stock valued at $28,000 after purchasing an additional 40 shares during the last quarter. AlphaQuest LLC acquired a new stake in AeroVironment in the 3rd quarter worth approximately $25,000. Vermillion Wealth Management Inc. acquired a new stake in AeroVironment in the 3rd quarter worth approximately $31,000. Finally, Steigerwald Gordon & Koch Inc. purchased a new stake in AeroVironment during the 3rd quarter worth approximately $31,000. 86.38% of the stock is currently owned by hedge funds and other institutional investors.

AeroVironment Stock Performance

The company has a current ratio of 5.08, a quick ratio of 4.29 and a debt-to-equity ratio of 0.16. The company has a market cap of $11.47 billion, a PE ratio of -183.84, a P/E/G ratio of 3.49 and a beta of 1.26. The firm’s 50-day simple moving average is $284.15 and its two-hundred day simple moving average is $292.63.

AeroVironment (NASDAQ:AVAV) last posted its quarterly earnings results on Tuesday, December 9th. The aerospace company reported $0.44 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.87 by ($0.43). AeroVironment had a positive return on equity of 3.42% and a negative net margin of 5.08%.The company had revenue of $472.51 million during the quarter, compared to analysts’ expectations of $466.16 million. During the same period in the prior year, the business posted $0.47 EPS. The company’s quarterly revenue was up 150.7% on a year-over-year basis. AeroVironment has set its FY 2026 guidance at 3.400-3.550 EPS. As a group, research analysts anticipate that AeroVironment, Inc. will post 3.38 earnings per share for the current fiscal year.

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.