Bank of America Issues Pessimistic Forecast for AeroVironment (NASDAQ:AVAV) Stock Price

AeroVironment (NASDAQ:AVAV) had its price objective cut by equities researchers at Bank of America from $225.00 to $185.00 in a report issued on Friday, Benzinga reports. The brokerage presently has a “buy” rating on the aerospace company’s stock. Bank of America‘s target price suggests a potential upside of 27.36% from the company’s current price.

AVAV has been the topic of several other research reports. William Blair reaffirmed an “outperform” rating on shares of AeroVironment in a report on Wednesday, July 15th. JPMorgan Chase & Co. lifted their price objective on AeroVironment from $200.00 to $210.00 and gave the company an “overweight” rating in a research note on Thursday. Needham & Company LLC restated a “buy” rating and set a $225.00 target price on shares of AeroVironment in a research report on Thursday. UBS Group upped their target price on AeroVironment from $166.00 to $170.00 and gave the stock a “neutral” rating in a research note on Thursday. Finally, Wall Street Zen raised AeroVironment from a “sell” rating to a “hold” rating in a report on Sunday, July 5th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, AeroVironment currently has an average rating of “Moderate Buy” and a consensus target price of $247.79.

AeroVironment Price Performance

Shares of AVAV stock traded down $1.81 during trading hours on Friday, reaching $145.26. The stock had a trading volume of 734,255 shares, compared to its average volume of 1,655,794. The stock’s fifty day simple moving average is $158.30 and its 200 day simple moving average is $179.00. The firm has a market capitalization of $7.38 billion, a PE ratio of -62.01, a PEG ratio of 4.87 and a beta of 1.41. AeroVironment has a 12 month low of $135.20 and a 12 month high of $417.86. The company has a current ratio of 4.30, a quick ratio of 3.59 and a debt-to-equity ratio of 0.17.

AeroVironment (NASDAQ:AVAV) last posted its earnings results on Wednesday, September 9th. The aerospace company reported $0.59 earnings per share for the quarter, topping analysts’ consensus estimates of $0.22 by $0.37. AeroVironment had a negative net margin of 5.77% and a positive return on equity of 4.06%. The business had revenue of $480.49 million for the quarter, compared to analyst estimates of $451.95 million. During the same quarter in the prior year, the firm posted $0.32 EPS. AeroVironment’s revenue was up 5.7% on a year-over-year basis. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS. On average, equities research analysts predict that AeroVironment will post 3.2 EPS for the current year.

Insider Transactions at AeroVironment

In other news, Director Stephen Page sold 250 shares of the stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $174.41, for a total transaction of $43,602.50. Following the transaction, the director directly owned 49,001 shares in the company, valued at approximately $8,546,264.41. This represents a 0.51% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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 firm’s stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $201.86, for a total value of $41,381.30. Following the transaction, the chief accounting officer directly owned 7,888 shares in the company, valued at approximately $1,592,271.68. This represents a 2.53% 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. Insiders sold a total of 705 shares of company stock valued at $132,979 over the last quarter. Company insiders own 0.79% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of AVAV. Sunbelt Securities Inc. purchased a new stake in shares of AeroVironment in the 1st quarter valued at $25,000. Hilton Head Capital Partners LLC purchased a new position in AeroVironment in the 4th quarter worth $26,000. Whittier Trust Co. of Nevada Inc. purchased a new position in AeroVironment in the 1st quarter worth $28,000. Hazlett Burt & Watson Inc. raised its position in AeroVironment by 90.0% in the 4th quarter. Hazlett Burt & Watson Inc. now owns 133 shares of the aerospace company’s stock worth $32,000 after purchasing an additional 63 shares during the period. Finally, Toth Financial Advisory Corp bought a new stake in AeroVironment in the second quarter worth $33,000. 86.38% of the stock is currently owned by institutional investors.

Key Headlines Impacting AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Quarterly results exceeded expectations. Revenue reached a record $480.5 million, up 5.7% year over year and above the roughly $452 million consensus. Non-GAAP EPS of $0.59 substantially surpassed the $0.22 analyst estimate, while the prior-year quarter produced $0.32 per share. Why AeroVironment Stock Is Up Today
• Positive Sentiment: Backlog and bookings strengthened visibility. Funded backlog rose 37% year over year to a record $1.5 billion, bookings totaled approximately $700 million and the book-to-bill ratio was 1.4. Management said fiscal 2027 started strongly, supported by demand for drones, counter-drone systems and other defense technologies. AeroVironment Fiscal 2027 Results
• Positive Sentiment: LOCUST secured an important international foothold. AeroVironment received its first international commercial order for its LOCUST directed-energy counter-drone system, valued at more than $50 million. The contract supports the company’s strategy of building laser weapons into a major growth franchise. International LOCUST Order
• Positive Sentiment: Analyst support improved. JPMorgan raised its price target to $210 and maintained an Overweight rating, while Citizens JMP, Needham and BTIG reiterated bullish ratings with targets ranging from $205 to $230. Analyst Forecasts
• Neutral Sentiment: Guidance was maintained but remains a watchpoint. Fiscal 2027 revenue guidance of $2.1 billion to $2.2 billion has a midpoint slightly below analyst expectations, while EPS guidance of $3.02 to $3.34 brackets the consensus estimate of $3.21.
• Negative Sentiment: Some analysts cautioned that revenue growth is slowing, profitability remains pressured and execution must improve. AeroVironment reported a GAAP net loss, and its elevated valuation leaves the stock sensitive to any backlog-conversion or margin disappointment. AeroVironment Earnings Risks

About AeroVironment

AeroVironment, Inc is a defense technology company that develops and produces unmanned aircraft systems, loitering munitions, counter-unmanned aircraft systems and related robotic technologies. Its products are designed for intelligence, surveillance and reconnaissance, precision strike, force protection and tactical communications applications.

The company’s portfolio includes the Raven, Puma and Wasp small unmanned aircraft systems; the JUMP 20 vertical takeoff and landing aircraft; and the Switchblade family of loitering munitions.