AeroVironment (NASDAQ:AVAV) Trading 5.8% Higher – Still a Buy?

AeroVironment, Inc. (NASDAQ:AVAV)’s stock price was up 5.8% on Friday . The company traded as high as $370.50 and last traded at $364.99. Approximately 1,885,448 shares were traded during mid-day trading, a decline of 8% from the average daily volume of 2,060,485 shares. The stock had previously closed at $344.96.

Key Headlines Impacting AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Major U.S. Army drone award flow and contract wins are being cited as the primary catalyst lifting sentiment and volumes; media coverage highlights a cluster of Army awards that materially improve AVAV’s addressable backlog and growth outlook. AeroVironment (AVAV) Is Up 31.7% After Major U.S. Army Drone Awards Has The Bull Case Changed?
• Positive Sentiment: Piper Sandler reaffirmed its Buy rating on AVAV, supporting investor confidence and reinforcing the bullish narrative from sell‑side coverage. Piper Sandler Reaffirms Their Buy Rating on AeroVironment (AVAV)
• Positive Sentiment: Partner win: Parry Labs will integrate MOSA-aligned mission systems into AV’s P550 UAS for the Army’s Long Range Reconnaissance program, strengthening AVAV’s product competitiveness on key military programs. Parry Labs Advances Modular Mission Systems in AV’s P550™ for Army LRR Program
• Positive Sentiment: Recent Wall Street starts and upgrades (e.g., KeyBanc/other coverage) underline continued institutional interest in AVAV’s defense/leverage story. Where is AeroVironment (AVAV) Headed According to Wall Street?
• Neutral Sentiment: Market conversation on valuation: several commentaries ask whether the run (roughly +100% over 1 year) leaves AVAV overvalued, prompting some profit‑taking and debate about upside from here. Is It Too Late To Consider AeroVironment (AVAV) After A 111% One-Year Surge?
• Neutral Sentiment: Unusually large call-option activity was reported, indicating speculative or hedged bullish positioning that likely amplified intraday moves.
• Negative Sentiment: Analyst caution and downgrades: at least one note argued AVAV is “flying too high” and trimmed ratings/targets, which could cap near-term upside if revisions accelerate. AeroVironment: This Drone Stock Is Flying Too High (Rating Downgrade)
• Negative Sentiment: Legal/investor risk: Pomerantz launched an investor investigation into AVAV, adding regulatory/legal overhang that could pressure sentiment if it develops. INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Aerovironment, Inc. – AVAV
• Negative Sentiment: Fundamental caution: AVAV’s Dec. quarterly report missed EPS expectations (though revenue grew sharply) and the company trimmed prior guidance, a backdrop that some investors cite when judging sustainability of the rally.

Analysts Set New Price Targets

AVAV has been the subject of a number of research analyst reports. BNP Paribas raised AeroVironment to a “strong-buy” rating in a research note on Tuesday, November 18th. William Blair restated an “outperform” rating on shares of AeroVironment in a report on Tuesday, September 16th. Citigroup reiterated an “outperform” rating on shares of AeroVironment in a report on Friday, October 3rd. Piper Sandler reaffirmed an “overweight” rating on shares of AeroVironment in a research note on Wednesday, December 10th. Finally, Citizens Jmp reissued a “market outperform” rating and issued a $400.00 price objective on shares of AeroVironment in a research report on Wednesday, December 10th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, AeroVironment presently has a consensus rating of “Moderate Buy” and an average price target of $375.41.

AeroVironment Stock Performance

The company has a debt-to-equity ratio of 0.16, a quick ratio of 4.29 and a current ratio of 5.08. The company has a market capitalization of $18.22 billion, a P/E ratio of -291.99, a PEG ratio of 4.70 and a beta of 1.16. The stock’s fifty day moving average price is $282.10 and its 200-day moving average price is $284.28.

AeroVironment (NASDAQ:AVAV) last released its quarterly earnings data on Tuesday, December 9th. The aerospace company reported $0.44 EPS for the quarter, missing the consensus estimate of $0.87 by ($0.43). The company had revenue of $472.51 million during the quarter, compared to analyst estimates of $466.16 million. AeroVironment had a negative net margin of 5.08% and a positive return on equity of 3.42%. AeroVironment’s revenue for the quarter was up 150.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.47 earnings per share. AeroVironment has set its FY 2026 guidance at 3.400-3.550 EPS. As a group, research analysts anticipate that AeroVironment, Inc. will post 3.38 EPS for the current fiscal year.

Insider Buying and Selling at AeroVironment

In other news, CAO Brian Charles Shackley sold 200 shares of the stock in a transaction 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 transaction, the chief accounting officer directly owned 5,994 shares in the company, valued at approximately $1,504,014.48. This represents a 3.23% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Kevin Patrick Mcdonnell sold 513 shares of the company’s stock in a transaction dated Monday, November 10th. The shares were sold at an average price of $331.46, for a total value of $170,038.98. Following the completion of the sale, the chief financial officer owned 18,811 shares in the company, valued at $6,235,094.06. This trade represents a 2.65% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 1,224 shares of company stock worth $347,651. Corporate insiders own 0.81% of the company’s stock.

Institutional Trading of AeroVironment

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. N.E.W. Advisory Services LLC grew its holdings in shares of AeroVironment by 60.0% during the third quarter. N.E.W. Advisory Services LLC now owns 80 shares of the aerospace company’s stock valued at $25,000 after buying an additional 30 shares during the last quarter. Rothschild Investment LLC grew its position in shares of AeroVironment by 7.8% during the 3rd quarter. Rothschild Investment LLC now owns 498 shares of the aerospace company’s stock valued at $157,000 after acquiring an additional 36 shares during the period. TD Waterhouse Canada Inc. increased its stake in shares of AeroVironment by 100.0% in the third quarter. TD Waterhouse Canada Inc. now owns 80 shares of the aerospace company’s stock worth $28,000 after purchasing an additional 40 shares in the last quarter. Thurston Springer Miller Herd & Titak Inc. boosted its holdings in shares of AeroVironment by 21.5% in the second quarter. Thurston Springer Miller Herd & Titak Inc. now owns 237 shares of the aerospace company’s stock worth $68,000 after acquiring an additional 42 shares during the period. Finally, Amalgamated Bank boosted its position in shares of AeroVironment by 0.6% in the second quarter. Amalgamated Bank now owns 8,023 shares of the aerospace company’s stock valued at $2,286,000 after acquiring an additional 44 shares during the period. 86.38% of the stock is owned by institutional investors.

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.