AeroVironment (NASDAQ:AVAV) Cut to Strong Sell at Zacks Research

Zacks Research downgraded shares of AeroVironment (NASDAQ:AVAV) from a hold rating to a strong sell rating in a research report sent to investors on Wednesday,Zacks.com reports.

Several other research firms also recently weighed in on AVAV. BNP Paribas Exane assumed coverage on AeroVironment in a research report on Tuesday, November 18th. They set an “outperform” rating and a $355.00 target price on the stock. BTIG Research restated a “buy” rating and issued a $415.00 price target on shares of AeroVironment in a report on Monday, January 26th. Canaccord Genuity Group dropped their price objective on shares of AeroVironment from $400.00 to $330.00 and set a “buy” rating for the company in a research note on Tuesday. The Goldman Sachs Group cut their price objective on shares of AeroVironment from $486.00 to $429.00 and set a “buy” rating on the stock in a report on Friday, December 12th. Finally, JPMorgan Chase & Co. started coverage on shares of AeroVironment in a research report on Tuesday, February 17th. They issued an “overweight” rating and a $320.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, one has issued a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, AeroVironment currently has an average rating of “Moderate Buy” and a consensus target price of $348.33.

AeroVironment Stock Up 4.2%

AVAV stock opened at $229.80 on Wednesday. The stock has a market capitalization of $11.47 billion, a P/E ratio of -183.84, a PEG ratio of 3.49 and a beta of 1.26. The company has a debt-to-equity ratio of 0.16, a quick ratio of 4.29 and a current ratio of 5.08. AeroVironment has a one year low of $102.25 and a one year high of $417.86. The company has a 50 day moving average price of $284.15 and a two-hundred day moving average price of $292.63.

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

Insider Transactions at AeroVironment

In other news, CAO Brian Charles Shackley sold 200 shares of AeroVironment stock in a transaction dated Tuesday, December 30th. The stock was sold at an average price of $250.92, for a total value of $50,184.00. Following the transaction, the chief accounting officer directly owned 5,994 shares of the company’s stock, valued at $1,504,014.48. The trade was a 3.23% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, CFO Kevin Patrick Mcdonnell sold 999 shares of the business’s stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $367.60, for a total value of $367,232.40. Following the sale, the chief financial officer owned 17,301 shares of the company’s stock, valued at $6,359,847.60. The trade was a 5.46% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 4,589 shares of company stock worth $1,428,910 in the last three months. 0.81% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On AeroVironment

Several institutional investors have recently bought and sold shares of AVAV. N.E.W. Advisory Services LLC increased its position in shares of AeroVironment by 60.0% in the third quarter. N.E.W. Advisory Services LLC now owns 80 shares of the aerospace company’s stock worth $25,000 after acquiring an additional 30 shares in the last quarter. Rothschild Investment LLC lifted its holdings 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 in the last quarter. Legacy Bridge LLC lifted its holdings in shares of AeroVironment by 1.0% during the 4th quarter. Legacy Bridge LLC now owns 4,046 shares of the aerospace company’s stock valued at $979,000 after acquiring an additional 39 shares in the last quarter. NewEdge Wealth LLC boosted its position in AeroVironment by 1.1% during the 4th quarter. NewEdge Wealth LLC now owns 3,709 shares of the aerospace company’s stock worth $897,000 after purchasing an additional 39 shares during the period. Finally, J.W. Cole Advisors Inc. boosted its position in AeroVironment by 3.7% during the 4th quarter. J.W. Cole Advisors Inc. now owns 1,081 shares of the aerospace company’s stock worth $261,000 after purchasing an additional 39 shares during the period. 86.38% of the stock is currently owned by hedge funds and other institutional investors.

More AeroVironment News

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: AeroVironment won a $97.4 million U.S. Army contract, reinforcing near-term revenue visibility and supporting demand for Switchblade and other tactical systems. This award is a concrete sales driver ahead of the company’s upcoming quarter. Benzinga: Army Contract
• Positive Sentiment: Sector tailwinds: Market commentary highlights AeroVironment as a core beneficiary of rising defense budgets and the shift to unmanned systems, which can attract buyers rotating into defense names. MarketBeat: Unmanned Profits
• Neutral Sentiment: Upcoming catalysts and investor access: management will present at the J.P. Morgan Industrials Conference (March 18) and Q3 earnings are due imminently — both could move the stock materially depending on guidance and margin commentary. Yahoo: JP Morgan Presentation
• Neutral Sentiment: Corporate items with limited market impact: the company adopted a new executive deferred-compensation plan (administrative). TipRanks: Deferred Comp Plan
• Neutral Sentiment: Reported short-interest data in these feeds appears inconsistent (shows zero), so short-covering is not a clear driver from the published figures.
• Negative Sentiment: Zacks downgraded AVAV from “hold” to “strong sell,” signaling downgrade-driven selling pressure from momentum or quant strategies. Zacks
• Negative Sentiment: Multiple analysts have cut forecasts or price targets (Robert W. Baird, Piper Sandler, RBC), increasing downside risk from lower sell-side expectations. Baird note Piper Sandler note RBC note
• Negative Sentiment: A shareholder class-action probe by Pomerantz introduces litigation risk and potential headline-driven volatility for investors. PR Newswire: Pomerantz Investigation
• Negative Sentiment: Earnings uncertainty: previews from Seeking Alpha and other outlets warn of margin/cost headwinds and specific program risks (the “1.4B problem”), which could pressure the stock if guidance or margins disappoint. Seeking Alpha: Q4 Preview
• Negative Sentiment: Recent sell-off commentary highlights a sizable pullback ahead of earnings and the potential for further downside if macro or company-specific headlines worsen. Yahoo: Reassessing AVAV Yahoo: Falls More Steeply

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.