AeroVironment (NASDAQ:AVAV) Shares Gap Down After Earnings Miss

AeroVironment, Inc. (NASDAQ:AVAV)’s share price gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $221.57, but opened at $204.50. AeroVironment shares last traded at $206.89, with a volume of 1,720,720 shares traded.

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

AeroVironment News Roundup

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 Ratings Changes

A number of equities analysts have commented on the stock. Zacks Research cut shares of AeroVironment from a “hold” rating to a “strong sell” rating in a research note on Wednesday, March 4th. 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 report on Tuesday, March 3rd. BTIG Research reiterated a “buy” rating and issued a $415.00 target price on shares of AeroVironment in a research report on Monday, January 26th. Jefferies Financial Group reissued a “buy” rating and issued a $390.00 target price on shares of AeroVironment in a research note on Monday, March 2nd. Finally, Weiss Ratings downgraded AeroVironment from a “hold (c-)” rating to a “sell (d)” rating in a research report on Monday, February 9th. One research 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 assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $329.89.

Insider Activity at AeroVironment

In other AeroVironment news, Director Stephen F. Page sold 1,000 shares of the company’s stock in a transaction dated Thursday, January 15th. The shares were sold at an average price of $377.62, for a total transaction of $377,620.00. Following the completion of the sale, the director directly owned 51,001 shares in the company, valued at $19,258,997.62. This represents a 1.92% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Kevin Patrick Mcdonnell sold 999 shares of the company’s stock in a transaction dated Monday, January 12th. The shares were sold at an average price of $367.60, for a total transaction of $367,232.40. Following the sale, the chief financial officer 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 4,474 shares of company stock valued at $1,390,404. Insiders own 0.81% of the company’s stock.

Institutional Investors Weigh In On AeroVironment

A number of hedge funds and other institutional investors have recently modified their holdings of AVAV. State of Michigan Retirement System bought a new stake in AeroVironment during the third quarter valued at about $2,393,000. ARK Investment Management LLC lifted its position in shares of AeroVironment by 28.9% in the third quarter. ARK Investment Management LLC now owns 400,457 shares of the aerospace company’s stock valued at $126,100,000 after acquiring an additional 89,697 shares in the last quarter. Wealth Enhancement Advisory Services LLC boosted its stake in shares of AeroVironment by 550.7% in the third quarter. Wealth Enhancement Advisory Services LLC now owns 178,204 shares of the aerospace company’s stock worth $56,115,000 after acquiring an additional 150,819 shares during the period. Keystone Investors PTE Ltd. purchased a new stake in shares of AeroVironment during the third quarter worth about $2,355,000. Finally, Rheos Capital Works Inc. purchased a new stake in shares of AeroVironment during the third quarter worth about $37,787,000. Institutional investors own 86.38% of the company’s stock.

AeroVironment Price Performance

The firm has a 50 day moving average of $282.58 and a 200-day moving average of $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 company has a market cap of $10.37 billion, a P/E ratio of -47.86, a P/E/G 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.