AeroVironment (NASDAQ:AVAV) Stock Price Down 2.3% – Should You Sell?

AeroVironment, Inc. (NASDAQ:AVAV)’s share price fell 2.3% during trading on Thursday . The stock traded as low as $185.68 and last traded at $189.43. Approximately 897,665 shares changed hands during mid-day trading, a decline of 45% from the average session volume of 1,632,451 shares. The stock had previously closed at $193.81.

Key AeroVironment News

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: President Donald Trump signed a proclamation imposing tariffs of up to 100% on imported drones and critical components. The policy is intended to reduce dependence on foreign supply chains and could give U.S. manufacturers such as AeroVironment a competitive advantage, potentially increasing demand for domestic systems. Trump administration imposes sweeping tariffs on foreign drone imports
• Positive Sentiment: AVAV is participating in a wider rally among domestic drone and defense stocks, including Kratos, Red Cat and Ondas, as investors anticipate that tariff protection could shift business toward U.S.-based suppliers. AeroVironment, Ondas, and Kratos Rising as Trump Levies Tariffs on Drone Imports
• Positive Sentiment: Recent momentum has also been supported by strong defense demand, a reported $117.3 million Army contract and a new autonomous-systems partnership. These developments reinforce the view that AeroVironment could benefit from sustained military procurement. AVAV Outperforms Industry in the Past Month
• Neutral Sentiment: Analysts remain constructive, with Clear Street maintaining a Buy rating, but valuation models suggest the shares may be near fair value after substantial long-term gains. Investors may therefore require continued contract wins and execution to justify further appreciation. Clear Street Remains a Buy on AeroVironment
• Negative Sentiment: One updated valuation analysis lowered its implied fair value estimate from approximately $251.93 to $225.77 per share, citing execution risk, heavier investment needs and elevated valuation following sharply revised expectations. This could limit upside if tariff-related benefits take time to materialize. AeroVironment Stock Sees Fair Value Cut

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on AVAV shares. Zacks Research raised shares of AeroVironment from a “strong sell” rating to a “hold” rating in a research note on Monday, May 4th. Wall Street Zen upgraded shares of AeroVironment from a “sell” rating to a “hold” rating in a report on Sunday, July 5th. Needham & Company LLC restated a “buy” rating and issued a $225.00 price target on shares of AeroVironment in a research report on Thursday, July 9th. Citizens Jmp cut their price objective on AeroVironment from $350.00 to $230.00 and set a “market outperform” rating for the company in a research report on Friday, July 10th. Finally, BTIG Research reissued a “buy” rating and set a $205.00 price objective on shares of AeroVironment in a research note on Thursday, July 9th. Two analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $266.68.

AeroVironment Stock Up 1.8%

The company has a debt-to-equity ratio of 0.17, a quick ratio of 3.59 and a current ratio of 4.30. The stock has a market cap of $9.76 billion, a price-to-earnings ratio of -52.39, a price-to-earnings-growth ratio of 6.44 and a beta of 1.41. The business’s 50 day moving average is $162.61 and its 200 day moving average is $195.05.

AeroVironment (NASDAQ:AVAV) last released its earnings results on Monday, June 29th. The aerospace company reported $1.84 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.47 by $0.37. AeroVironment had a positive return on equity of 3.71% and a negative net margin of 9.00%.The company had revenue of $641.62 million during the quarter, compared to analyst estimates of $555.97 million. During the same quarter in the prior year, the company earned $1.61 earnings per share. The company’s revenue for the quarter was up 133.3% on a year-over-year basis. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. Equities analysts expect that AeroVironment, Inc. will post 3.26 earnings per share for the current year.

Insider Activity

In other news, CAO Brian Charles Shackley sold 205 shares of the company’s stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $201.86, for a total value of $41,381.30. Following the transaction, the chief accounting officer owned 7,888 shares in the company, valued at $1,592,271.68. This represents a 2.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen F. Page sold 250 shares of the stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $174.41, for a total transaction of $43,602.50. Following the completion of the sale, the director directly owned 49,001 shares of the company’s stock, valued at $8,546,264.41. This trade represents a 0.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.81% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On AeroVironment

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AVAV. F m Investments LLC acquired a new position in AeroVironment in the 4th quarter worth about $1,775,000. Norges Bank acquired a new stake in shares of AeroVironment during the 4th quarter valued at about $94,655,000. MYDA Advisors LLC bought a new stake in shares of AeroVironment in the 4th quarter valued at approximately $3,628,000. GW&K Investment Management LLC raised its position in AeroVironment by 289.9% during the fourth quarter. GW&K Investment Management LLC now owns 222,055 shares of the aerospace company’s stock valued at $53,714,000 after acquiring an additional 165,106 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. lifted its stake in AeroVironment by 92.2% in the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 20,173 shares of the aerospace company’s stock valued at $5,168,000 after acquiring an additional 9,675 shares during the last quarter. Hedge funds and other institutional investors own 86.38% of the company’s stock.

AeroVironment Company Profile

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.