AeroVironment (NASDAQ:AVAV) Shares Down 2.3% After Analyst Downgrade

Shares of AeroVironment, Inc. (NASDAQ:AVAV) dropped 2.3% during trading on Friday after Jefferies Financial Group lowered their price target on the stock from $390.00 to $305.00. Jefferies Financial Group currently has a buy rating on the stock. AeroVironment traded as low as $206.64 and last traded at $207.07. Approximately 1,364,891 shares changed hands during trading, a decline of 32% from the average daily volume of 1,998,112 shares. The stock had previously closed at $211.88.

A number of other brokerages have also commented on AVAV. Canaccord Genuity Group dropped their price objective on shares of AeroVironment from $330.00 to $300.00 and set a “buy” rating on the stock in a report on Thursday. Royal Bank Of Canada reduced their target price on shares of AeroVironment from $325.00 to $250.00 and set an “outperform” rating for the company in a research note on Wednesday. The Goldman Sachs Group lowered their target price on AeroVironment from $486.00 to $429.00 and set a “buy” rating for the company in a report on Friday, December 12th. KeyCorp dropped their price target on AeroVironment from $330.00 to $295.00 and set an “overweight” rating on the stock in a research note on Wednesday. Finally, Needham & Company LLC cut their price target on AeroVironment from $450.00 to $400.00 and set a “buy” rating on the stock in a report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, one has assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, AeroVironment currently has a consensus rating of “Moderate Buy” and an average target price of $318.78.

Insider Buying and Selling at AeroVironment

In other news, CAO Brian Charles Shackley sold 200 shares of the stock in a transaction that occurred on Tuesday, December 30th. The stock was sold at an average price of $250.92, for a total value of $50,184.00. Following the completion of the sale, the chief accounting officer owned 5,994 shares of the company’s stock, valued at approximately $1,504,014.48. This represents a 3.23% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, 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 value of $367,232.40. Following the completion of the sale, the chief financial officer directly owned 17,301 shares of the company’s stock, valued at approximately $6,359,847.60. The trade was a 5.46% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 4,474 shares of company stock worth $1,390,404 over the last ninety days. 0.81% of the stock is currently owned by corporate insiders.

Key Stories Impacting AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Underlying demand/backlog: Q3 revenue rose ~143% YoY and the company still reports a multi‑hundred‑million to billion‑level backlog that supports longer‑term revenue — a constructive backdrop if execution and contract timing normalize. Q3 revenue and backlog discussion
• Positive Sentiment: Analyst support remains: despite trimming targets, many firms (BTIG, Jefferies, Canaccord and others) kept Buy/Outperform ratings, signalling expectations of mid/long‑term upside if AeroVironment regains program visibility and scales production. Analyst note summary (Benzinga)
• Neutral Sentiment: Earnings and guidance: Q3 results beat on some metrics (strong YoY revenue growth) but missed consensus on revenue and EPS; management set FY‑2026 EPS guidance of $2.75–$3.10, below street expectations — creates uncertainty but also sets clearer, more conservative targets. Q3 miss and guidance
• Neutral Sentiment: Price‑target downgrades but ratings mixed: several shops cut targets (KeyBanc, Canaccord, BTIG, Jefferies) while mostly keeping Buy/Outperform stances — implies recalibrated expectations rather than broad conviction shift. KeyCorp target cut Canaccord note
• Neutral Sentiment: Short‑interest reporting in feeds shows anomalous/zero values (likely data error); no clear short squeeze signal from those items. Short interest entries (data anomaly)
• Negative Sentiment: Market reaction: shares plunged after the Q3 miss and the outlook cut as investors punished reduced near‑term visibility and growth assumptions. Shares fall on Q3 miss
• Negative Sentiment: Contract risk: reports of SCAR/Space Force contract termination or timing disruptions remove material unfunded backlog (reports cite ~$1.4–1.7B), increasing near‑term revenue uncertainty and pressuring sentiment. SCAR contract and backlog risk
• Negative Sentiment: Financing/leverage risk: disclosure of a $727M notes issuance tightens covenants and raises leverage/liquidity risk — an added structural concern for investors already focused on visibility. Notes issuance risk
• Negative Sentiment: Headline/legal/insider risk: Pomerantz launched an investor probe and the CFO disclosed small share sales — both increase short‑term headline risk and may amplify volatility. Pomerantz investigation CFO Form 4

Institutional Trading of AeroVironment

A number of large investors have recently added to or reduced their stakes in AVAV. N.E.W. Advisory Services LLC raised its holdings in shares of AeroVironment by 60.0% in the 3rd quarter. N.E.W. Advisory Services LLC now owns 80 shares of the aerospace company’s stock valued at $25,000 after purchasing an additional 30 shares during the period. AlphaQuest LLC bought a new position in AeroVironment during the third quarter worth about $25,000. Tema Etfs LLC bought a new position in AeroVironment during the fourth quarter worth about $26,000. Hilton Head Capital Partners LLC acquired a new position in AeroVironment during the fourth quarter worth approximately $26,000. Finally, TD Waterhouse Canada Inc. increased its position in AeroVironment by 100.0% during the third quarter. TD Waterhouse Canada Inc. now owns 80 shares of the aerospace company’s stock worth $28,000 after buying an additional 40 shares during the last quarter. Institutional investors and hedge funds own 86.38% of the company’s stock.

AeroVironment Stock Down 2.3%

The company has a quick ratio of 4.29, a current ratio of 5.51 and a debt-to-equity ratio of 0.17. The firm has a 50 day simple moving average of $281.00 and a 200-day simple moving average of $292.20. The stock has a market cap of $10.34 billion, a P/E ratio of -47.71, a price-to-earnings-growth ratio of 3.57 and a beta of 1.26.

AeroVironment (NASDAQ:AVAV) last released its quarterly earnings data on Tuesday, March 10th. The aerospace company reported $0.64 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.68 by ($0.04). The business had revenue of $408.05 million during the quarter, compared to analyst estimates of $487.94 million. AeroVironment had a negative net margin of 13.93% and a positive return on equity of 3.26%. The business’s quarterly revenue was up 143.4% on a year-over-year basis. During the same period in the previous year, the business earned $0.30 earnings per share. AeroVironment has set its FY 2026 guidance at 2.750-3.100 EPS. On average, equities research analysts forecast 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.