AeroVironment (NASDAQ:AVAV) Stock Price Up 1.3% – Here’s Why

AeroVironment, Inc. (NASDAQ:AVAV)’s stock price traded up 1.3% during trading on Thursday . The stock traded as high as $151.95 and last traded at $147.21. Approximately 2,367,773 shares changed hands during trading, an increase of 48% from the average session volume of 1,600,043 shares. The stock had previously closed at $145.39.

Key AeroVironment News

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Landmark $464.8 million laser contract: The Army selected AeroVironment to deliver dozens of LOCUST X3 high-energy laser systems under its Enduring-High Energy Laser program. It is described as the first U.S. directed-energy weapon production award, moving the technology from testing toward field deployment and strengthening AVAV’s position in counter-drone defense. AV’s LOCUST Selected for Nearly $500 million Army Counter-UAS Contract
• Positive Sentiment: Improved revenue visibility and potential growth platform: The multiyear award could establish a new business line for directed-energy systems and expand AeroVironment’s broader counter-UAS opportunity. It may also support future technology development and additional defense orders. AeroVironment’s $465 Million Army Laser Win Expands Its Counter-Drone Opportunity
• Positive Sentiment: Analyst support remains intact: BTIG maintained its Buy rating and $205 price target following the contract announcement, suggesting the award reinforces the long-term investment case. AeroVironment’s New $465M LOCUST Laser Contract Reinforces Buy Rating
• Neutral Sentiment: Contract economics remain unclear: Investors still need evidence that the award will generate attractive margins and meaningful near-term earnings, rather than simply increasing backlog. Production ramp-up, delivery timing, and execution will be important factors. AeroVironment: The $465 Million LOCUST Win Needs Margin Proof
• Negative Sentiment: Valuation and execution concerns are limiting the reaction: Commentary remains cautious about competition, limited near-term upside, and whether AeroVironment can translate the laser award into sustained margin expansion. Those concerns are contributing to the stock’s decline even after the headline contract win. Jim Cramer’s AeroVironment Comments

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the stock. Wedbush initiated coverage on shares of AeroVironment in a research note on Tuesday, June 30th. They issued an “outperform” rating and a $250.00 price objective for the company. Jefferies Financial Group reduced their price target on AeroVironment from $305.00 to $229.00 and set a “buy” rating on the stock in a report on Wednesday, July 1st. BTIG Research restated a “buy” rating and set a $205.00 price objective on shares of AeroVironment in a report on Thursday, July 9th. UBS Group reiterated a “buy” rating on shares of AeroVironment in a research note on Thursday, July 9th. Finally, Wolfe Research lowered shares of AeroVironment to a “buy” rating in a research note on Tuesday, June 30th. Two equities 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 stock. According to MarketBeat.com, AeroVironment presently has an average rating of “Moderate Buy” and a consensus target price of $266.68.

AeroVironment Stock Down 1.7%

The company has a current ratio of 4.30, a quick ratio of 3.59 and a debt-to-equity ratio of 0.17. The firm has a market cap of $7.35 billion, a PE ratio of -39.31, a P/E/G ratio of 5.09 and a beta of 1.41. The business’s 50-day simple moving average is $160.02 and its 200 day simple moving average is $182.91.

AeroVironment (NASDAQ:AVAV) last announced its quarterly earnings results on Monday, June 29th. The aerospace company reported $1.84 earnings per share for the quarter, topping the consensus estimate of $1.47 by $0.37. AeroVironment had a negative net margin of 9.00% and a positive return on equity of 3.71%. The firm had revenue of $641.62 million during the quarter, compared to analysts’ expectations of $555.97 million. During the same quarter in the prior year, the company earned $1.61 EPS. The company’s revenue was up 133.3% compared to the same quarter last year. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. As a group, equities research analysts expect that AeroVironment, Inc. will post 3.2 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Stephen F. Page sold 250 shares of the company’s stock in a transaction on Monday, August 17th. The stock was sold at an average price of $191.98, for a total transaction of $47,995.00. Following the completion of the sale, the director directly owned 48,503 shares in the company, valued at $9,311,605.94. This represents a 0.51% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Brian Shackley sold 205 shares of the company’s stock in a transaction on Friday, August 14th. The stock was sold at an average price of $201.86, for a total value of $41,381.30. Following the sale, the chief accounting officer owned 7,888 shares of the company’s stock, valued at $1,592,271.68. This trade represents a 2.53% 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. In the last 90 days, insiders have sold 705 shares of company stock valued at $132,979. 0.79% of the stock is owned by company insiders.

Hedge Funds Weigh In On AeroVironment

A number of large investors have recently added to or reduced their stakes in the company. Sunbelt Securities Inc. bought a new stake in shares of AeroVironment in the 1st quarter valued at about $25,000. Hilton Head Capital Partners LLC bought a new position in shares of AeroVironment during the 4th quarter worth approximately $26,000. Whittier Trust Co. of Nevada Inc. purchased a new stake in AeroVironment during the first quarter valued at approximately $28,000. Hazlett Burt & Watson Inc. lifted its position in AeroVironment by 90.0% during the fourth quarter. Hazlett Burt & Watson Inc. now owns 133 shares of the aerospace company’s stock valued at $32,000 after acquiring an additional 63 shares during the last quarter. Finally, Toth Financial Advisory Corp acquired a new stake in AeroVironment in the second quarter valued at approximately $33,000. 86.38% of the stock is currently owned by 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.