AeroVironment (NASDAQ:AVAV) Shares Gap Down on Disappointing Earnings

AeroVironment, Inc. (NASDAQ:AVAV) shares gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $196.89, but opened at $175.00. AeroVironment shares last traded at $172.35, with a volume of 477,175 shares trading hands.

The aerospace company reported $0.47 EPS for the quarter, missing analysts’ consensus estimates of $0.76 by ($0.29). The firm had revenue of $188.46 million for the quarter, compared to the consensus estimate of $181.80 million. AeroVironment had a net margin of 7.82% and a return on equity of 9.87%. The company’s quarterly revenue was up 4.2% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.97 earnings per share.

Wall Street Analysts Forecast Growth

AVAV has been the subject of a number of recent analyst reports. Royal Bank of Canada lowered their price target on AeroVironment from $230.00 to $215.00 and set an “outperform” rating for the company in a research report on Thursday, September 5th. Baird R W raised shares of AeroVironment from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, August 28th. Jefferies Financial Group raised shares of AeroVironment from a “hold” rating to a “buy” rating and dropped their target price for the stock from $240.00 to $230.00 in a research report on Wednesday, November 20th. Raymond James cut shares of AeroVironment from an “outperform” rating to a “market perform” rating in a research report on Monday, September 16th. Finally, Robert W. Baird upgraded shares of AeroVironment from a “neutral” rating to an “outperform” rating and raised their price objective for the stock from $161.00 to $220.00 in a report on Wednesday, August 28th. One research analyst has rated the stock with a hold rating, six have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Buy” and an average price target of $211.83.

Insider Buying and Selling

In related news, CFO Kevin Patrick Mcdonnell sold 878 shares of the firm’s stock in a transaction that occurred on Tuesday, October 1st. The stock was sold at an average price of $210.54, for a total transaction of $184,854.12. Following the completion of the transaction, the chief financial officer now owns 17,376 shares of the company’s stock, valued at $3,658,343.04. This trade represents a 4.81 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders sold a total of 1,782 shares of company stock worth $373,609 in the last three months. 1.27% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On AeroVironment

Institutional investors have recently modified their holdings of the stock. Security National Bank bought a new stake in shares of AeroVironment during the third quarter valued at approximately $31,000. Canada Pension Plan Investment Board purchased a new stake in AeroVironment during the 2nd quarter valued at $36,000. Truvestments Capital LLC bought a new stake in shares of AeroVironment in the 3rd quarter worth $62,000. Avior Wealth Management LLC raised its stake in shares of AeroVironment by 51.0% in the third quarter. Avior Wealth Management LLC now owns 394 shares of the aerospace company’s stock worth $79,000 after purchasing an additional 133 shares during the last quarter. Finally, Arcadia Investment Management Corp MI lifted its holdings in shares of AeroVironment by 23.1% during the third quarter. Arcadia Investment Management Corp MI now owns 400 shares of the aerospace company’s stock valued at $80,000 after purchasing an additional 75 shares in the last quarter. 86.38% of the stock is owned by hedge funds and other institutional investors.

AeroVironment Price Performance

The firm has a 50-day moving average of $208.78 and a 200 day moving average of $194.37. The company has a market capitalization of $4.67 billion, a PE ratio of 95.18 and a beta of 0.45. The company has a debt-to-equity ratio of 0.01, a current ratio of 4.26 and a quick ratio of 3.04.

About AeroVironment

AeroVironment, Inc designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses in the United States and internationally. It operates through Small Unmanned Aircraft Systems (SUAS), Tactical Missile System (TMS), Medium Unmanned Aircraft Systems (MUAS), and High Altitude Pseudo-Satellite Systems (HAPS) segments.