AeroVironment (NASDAQ:AVAV) Shares Gap Up on Strong Earnings

Shares of AeroVironment, Inc. (NASDAQ:AVAV) gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $140.80, but opened at $146.77. AeroVironment shares last traded at $151.1660, with a volume of 2,293,096 shares traded.

The aerospace company reported $0.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.22 by $0.37. The company had revenue of $480.49 million during the quarter, compared to analyst estimates of $451.95 million. AeroVironment had a negative net margin of 9.00% and a positive return on equity of 3.71%. The firm’s quarterly revenue was up 5.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.32 EPS. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS.

Key AeroVironment News

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: AeroVironment reported adjusted fiscal Q1 2027 EPS of $0.59, well above estimates ranging from $0.22 to $0.30. Revenue reached a record $480.5 million, up 5.7% year over year and ahead of expectations. AeroVironment Announces Fiscal 2027 First Quarter Results
• Positive Sentiment: Funded backlog increased 37% year over year to a record $1.5 billion, with $700 million of bookings and a 1.4 book-to-bill ratio. Management said fiscal 2027 is off to a strong start. AeroVironment stock forecast as its revenue and backlog jumps
• Positive Sentiment: The company received its first international purchase order for its LOCUST directed-energy counter-drone system, valued at more than $50 million. Management believes laser weapons could become a major growth franchise. AV Secures First International Order for LOCUST Directed Energy Counter-Drone Systems
• Positive Sentiment: Needham and BTIG reaffirmed “buy” ratings with price targets of $225 and $205, respectively, implying substantial upside from recent trading levels.
• Neutral Sentiment: AeroVironment maintained its fiscal 2027 outlook, including revenue guidance around $2.1 billion to $2.2 billion and adjusted EPS guidance of $3.02 to $3.34. However, the revenue midpoint is slightly below analysts’ expectations. AeroVironment’s Q2 CY2026: Strong Sales
• Negative Sentiment: Investors remain concerned that the stock’s earlier valuation assumed faster growth, while execution risks and the company’s negative GAAP net margin could keep volatility elevated. The shares have declined sharply from their prior peak, and broader risk-off trading has also pressured high-beta drone stocks.
• Negative Sentiment: A law firm has announced an investigation into AeroVironment’s board for potential fiduciary-duty breaches, adding an overhang even though no wrongdoing has been established. Berger Montague Investigates AeroVironment’s Board

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on AVAV. Royal Bank Of Canada cut shares of AeroVironment from an “outperform” rating to a “sector perform” rating and reduced their price objective for the stock from $210.00 to $180.00 in a research note on Thursday, July 9th. Citigroup reaffirmed a “market outperform” rating on shares of AeroVironment in a report on Thursday. BTIG Research reiterated a “buy” rating and issued a $205.00 price target on shares of AeroVironment in a research note on Thursday. UBS Group increased their price target on AeroVironment from $166.00 to $170.00 and gave the stock a “neutral” rating in a research note on Thursday. Finally, Bank of America decreased their price target on AeroVironment from $450.00 to $225.00 in a report on Thursday, July 16th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $255.68.

Insider Activity at AeroVironment

In related news, Director Stephen F. Page sold 250 shares of the company’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $191.98, for a total transaction of $47,995.00. Following the completion of the transaction, the director owned 48,503 shares in the company, valued at approximately $9,311,605.94. This represents a 0.51% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Brian Shackley sold 205 shares of the firm’s 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 transaction, the chief accounting officer directly owned 7,888 shares of the company’s stock, valued at $1,592,271.68. The trade was a 2.53% decrease in their ownership of the stock. 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. In the last quarter, insiders have sold 705 shares of company stock worth $132,979. Company insiders own 0.79% of the company’s stock.

Institutional Trading of AeroVironment

Several hedge funds have recently bought and sold shares of the stock. California State Teachers Retirement System grew its position in shares of AeroVironment by 16,307.2% during the second quarter. California State Teachers Retirement System now owns 6,215,051 shares of the aerospace company’s stock valued at $1,025,918,000 after purchasing an additional 6,177,171 shares in the last quarter. BlackRock Inc. bought a new position in AeroVironment during the second quarter valued at approximately $574,566,000. Geode Capital Management LLC grew its holdings in AeroVironment by 8.8% during the 4th quarter. Geode Capital Management LLC now owns 884,395 shares of the aerospace company’s stock valued at $213,956,000 after buying an additional 71,903 shares in the last quarter. Heard Capital LLC grew its holdings in AeroVironment by 48.4% during the 4th quarter. Heard Capital LLC now owns 722,150 shares of the aerospace company’s stock valued at $174,681,000 after buying an additional 235,685 shares in the last quarter. Finally, Ameriprise Financial Inc. increased its stake in AeroVironment by 17.2% in the 2nd quarter. Ameriprise Financial Inc. now owns 504,270 shares of the aerospace company’s stock worth $143,692,000 after acquiring an additional 73,963 shares during the last quarter. Hedge funds and other institutional investors own 86.38% of the company’s stock.

AeroVironment Trading Up 8.7%

The firm has a market cap of $7.78 billion, a P/E ratio of -41.68, a P/E/G ratio of 5.15 and a beta of 1.41. The stock has a 50 day simple moving average of $159.17 and a 200-day simple moving average of $179.83. The company has a current ratio of 4.30, a quick ratio of 3.59 and a debt-to-equity ratio of 0.17.

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.