AeroVironment (NASDAQ:AVAV) Shares Gap Up – Time to Buy?

AeroVironment, Inc. (NASDAQ:AVAV)’s share price gapped up prior to trading on Thursday . The stock had previously closed at $181.28, but opened at $199.94. AeroVironment shares last traded at $205.6270, with a volume of 1,035,722 shares.

More AeroVironment News

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Reports say the Trump administration may deepen ties with U.S. drone manufacturers, including AeroVironment, raising speculation that the company could benefit from new federal funding or even a strategic government stake. Article Title
• Positive Sentiment: AeroVironment announced a $20 million Air Force Research Laboratory contract to advance ceramic materials research for the Air and Space Forces, reinforcing its defense pipeline and near-term revenue opportunity. Article Title
• Positive Sentiment: The company also received a $20.2 million government-backed investment to expand its Huntsville, Alabama facility and accelerate production of the Freedom Eagle-1 interceptor, which supports future growth in counter-drone systems. Article Title
• Neutral Sentiment: Unusually heavy call option buying suggests traders are positioning for more upside, but it does not by itself change the company’s fundamentals. Article Title
• Negative Sentiment: Investor sentiment is being offset somewhat by multiple class-action lawsuit notices and securities-fraud investigations tied to prior disclosures, which could create legal overhang and volatility. Article Title

Wall Street Analyst Weigh In

Several brokerages have recently commented on AVAV. Raymond James Financial raised AeroVironment from an “underperform” rating to a “market perform” rating in a research note on Monday, March 23rd. Stifel Nicolaus lowered their price objective on AeroVironment from $389.00 to $315.00 and set a “buy” rating for the company in a research note on Wednesday, March 11th. Jefferies Financial Group cut their price target on shares of AeroVironment from $390.00 to $305.00 and set a “buy” rating on the stock in a report on Thursday, March 12th. Weiss Ratings cut shares of AeroVironment from a “hold (c-)” rating to a “sell (d)” rating in a report on Monday, February 9th. Finally, Piper Sandler cut their price target on shares of AeroVironment from $391.00 to $290.00 and set an “overweight” rating on the stock in a report on Tuesday, March 3rd. Two research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $318.78.

AeroVironment Trading Up 17.6%

The firm’s 50-day moving average price is $185.65 and its 200-day moving average price is $243.59. The company has a quick ratio of 4.54, a current ratio of 5.51 and a debt-to-equity ratio of 0.17. The company has a market cap of $10.64 billion, a P/E ratio of -48.99, a price-to-earnings-growth ratio of 2.50 and a beta of 1.35.

AeroVironment (NASDAQ:AVAV) last posted its quarterly earnings results on Tuesday, March 10th. The aerospace company reported $0.64 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.68 by ($0.04). AeroVironment had a negative net margin of 13.93% and a positive return on equity of 3.26%. The business had revenue of $408.05 million during the quarter, compared to the consensus estimate of $487.94 million. During the same period last year, the firm earned $0.30 EPS. The business’s revenue for the quarter was up 143.4% on a year-over-year basis. AeroVironment has set its FY 2026 guidance at 2.750-3.100 EPS. As a group, equities research analysts expect that AeroVironment, Inc. will post 2.94 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Kevin Patrick Mcdonnell sold 396 shares of the business’s stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $224.55, for a total value of $88,921.80. Following the sale, the chief financial officer owned 16,026 shares of the company’s stock, valued at $3,598,638.30. The trade was a 2.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Stephen F. Page sold 250 shares of AeroVironment stock in a transaction on Friday, May 15th. The shares were sold at an average price of $162.31, for a total value of $40,577.50. Following the completion of the transaction, the director owned 49,251 shares of the company’s stock, valued at approximately $7,993,929.81. This trade represents a 0.51% decrease in their ownership of the stock. 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 a total of 1,596 shares of company stock valued at $349,456 over the last quarter. Company insiders own 0.81% of the company’s stock.

Hedge Funds Weigh In On AeroVironment

Several hedge funds have recently made changes to their positions in the stock. Evolutionary Tree Capital Management LLC purchased a new position in shares of AeroVironment in the first quarter valued at $522,000. Western Wealth Management LLC purchased a new position in shares of AeroVironment in the first quarter valued at $37,000. Cim Investment Management Inc. grew its position in shares of AeroVironment by 62.1% in the first quarter. Cim Investment Management Inc. now owns 1,996 shares of the aerospace company’s stock valued at $365,000 after purchasing an additional 765 shares in the last quarter. Edgestream Partners L.P. grew its position in shares of AeroVironment by 6.7% in the first quarter. Edgestream Partners L.P. now owns 6,194 shares of the aerospace company’s stock valued at $1,134,000 after purchasing an additional 390 shares in the last quarter. Finally, Centaurus Financial Inc. purchased a new position in shares of AeroVironment in the first quarter valued at $285,000. 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.