AeroVironment (NASDAQ:AVAV) Stock Price Down 6.2% Following Weak Earnings

AeroVironment, Inc. (NASDAQ:AVAV)’s share price was down 6.2% on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $199.37 and last traded at $207.73. Approximately 5,213,174 shares were traded during trading, an increase of 162% from the average daily volume of 1,992,220 shares. The stock had previously closed at $221.57.

The aerospace company reported $0.64 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.72 by ($0.08). AeroVironment had a positive return on equity of 3.52% and a negative net margin of 13.93%.The company had revenue of $408.05 million for the quarter, compared to the consensus estimate of $487.94 million. During the same period in the prior year, the company earned $0.30 earnings per share. The firm’s revenue was up 143.4% compared to the same quarter last year. AeroVironment has set its FY 2026 guidance at 2.750-3.100 EPS.

Trending Headlines about AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Very strong top‑line growth: revenue rose ~143% year‑over‑year (Q3 sales ~$408M), showing robust demand and integration progress after acquisitions. AeroVironment Announces Fiscal 2026 Third Quarter Results
• Positive Sentiment: Healthy balance sheet and backlog: management and coverage notes point to a strong cash position that supports scaling production and pursuing commercial diversification, which some investors view as a longer‑term catalyst. MarketBeat – AeroVironment Profile
• Neutral Sentiment: Analysts cut price targets but many kept positive ratings — firms (Stifel, KeyBanc, RBC, UBS, etc.) trimmed targets to reflect SCAR/timing risk while often retaining Buy/Overweight, leaving potential upside if execution stabilizes.
• Neutral Sentiment: Insider activity: CFO sold a small block (~396 shares) disclosed March 10; size and frequency suggest limited signal about management conviction.
• Negative Sentiment: Earnings and revenue miss: adjusted EPS $0.64 missed consensus and revenue of $408M came in well below expectations — the immediate trigger for selling. AeroVironment Books A ‘Stellar Quarter,’ But Shares Dive
• Negative Sentiment: Guidance cut: FY2026 adjusted EPS narrowed to $2.75–$3.10 (previously $3.40–$3.55) and revenue guided ~$1.9–$2.0B — below Street expectations, which pressured sentiment and valuation.
• Negative Sentiment: Contract uncertainty: potential termination/stop‑work on the BADGER/SCAR program and timing disruptions in Space/Cyber/Directed Energy could remove ~$1.7B of expected business, amplifying downside risk. Coverage and news outlets highlighted this as a key negative. AeroVironment falls after revenue, profit miss and lowered outlook
• Negative Sentiment: Market reaction: heavy volume and a premarket selloff followed by after‑hours declines; multiple media pieces flagged significant intraday moves and price target cuts, increasing volatility and short‑term downside risk. AeroVironment (AVAV) Stock Plunges 9% on Q3 Miss and $1.7B Contract Uncertainty
• Negative Sentiment: Legal/investor risk: a securities law firm (Pomerantz) opened an investigation related to the disclosure and results, which can add near‑term headline risk.

Analyst Upgrades and Downgrades

A number of analysts recently commented on AVAV shares. Citigroup reaffirmed a “market outperform” rating on shares of AeroVironment in a research report on Monday, January 12th. Weiss Ratings cut AeroVironment from a “hold (c-)” rating to a “sell (d)” rating in a research note on Monday, February 9th. BNP Paribas Exane began 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. The Goldman Sachs Group cut their target price on AeroVironment from $486.00 to $429.00 and set a “buy” rating on the stock in a report on Friday, December 12th. Finally, UBS Group decreased their price target on shares of AeroVironment from $259.00 to $236.00 and set a “neutral” rating for the company in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, one has issued a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, AeroVironment has a consensus rating of “Moderate Buy” and a consensus price target of $329.89.

Insiders Place Their Bets

In related news, CAO Brian Charles Shackley sold 200 shares of AeroVironment stock in a transaction that occurred on Tuesday, December 30th. The stock was sold at an average price of $250.92, for a total transaction of $50,184.00. Following the transaction, the chief accounting officer owned 5,994 shares of the company’s stock, valued at $1,504,014.48. The trade was a 3.23% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Stephen F. Page sold 250 shares of the company’s stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $300.00, for a total value of $75,000.00. Following the sale, the director owned 50,001 shares of the company’s stock, valued at $15,000,300. This trade represents a 0.50% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 4,474 shares of company stock valued at $1,390,404. Corporate insiders own 0.81% of the company’s stock.

Hedge Funds Weigh In On AeroVironment

A number of hedge funds have recently bought and sold shares of the company. Hsbc Holdings PLC lifted its position in shares of AeroVironment by 31.2% during the fourth quarter. Hsbc Holdings PLC now owns 5,091 shares of the aerospace company’s stock valued at $1,235,000 after purchasing an additional 1,210 shares in the last quarter. Mengis Capital Management Inc. boosted its holdings in AeroVironment by 61.2% during the fourth quarter. Mengis Capital Management Inc. now owns 1,501 shares of the aerospace company’s stock worth $363,000 after purchasing an additional 570 shares during the last quarter. Caitong International Asset Management Co. Ltd bought a new stake in AeroVironment in the 4th quarter worth about $195,000. MidFirst Bank purchased a new stake in AeroVironment in the 4th quarter valued at about $40,000. Finally, Pacer Advisors Inc. increased its stake in AeroVironment by 45.5% in the 4th quarter. Pacer Advisors Inc. now owns 6,084 shares of the aerospace company’s stock valued at $1,472,000 after buying an additional 1,902 shares during the last quarter. 86.38% of the stock is owned by hedge funds and other institutional investors.

AeroVironment Stock Performance

The company’s 50-day simple moving average is $282.58 and its 200 day simple moving average is $292.68. The company has a current ratio of 5.08, a quick ratio of 4.29 and a debt-to-equity ratio of 0.16. The stock has a market cap of $10.37 billion, a P/E ratio of -47.86, a PEG ratio of 3.51 and a beta of 1.26.

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.