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

AeroVironment, Inc. (NASDAQ:AVAV) gapped down prior to trading 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 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.76 by ($0.29). AeroVironment had a return on equity of 9.87% and a net margin of 7.82%. The firm had revenue of $188.46 million during the quarter, compared to analysts’ expectations of $181.80 million. During the same period last year, the company earned $0.97 earnings per share. The business’s revenue for the quarter was up 4.2% on a year-over-year basis.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on AVAV shares. Alembic Global Advisors upgraded shares of AeroVironment from a “neutral” rating to an “overweight” rating and set a $216.00 price objective for the company in a research report on Wednesday, August 28th. Robert W. Baird upgraded shares of AeroVironment from a “neutral” rating to an “outperform” rating and increased their price objective for the company from $161.00 to $220.00 in a research report on Wednesday, August 28th. Royal Bank of Canada lowered their price objective on shares of AeroVironment from $230.00 to $215.00 and set an “outperform” rating for the company in a research report on Thursday, September 5th. William Blair restated an “outperform” rating on shares of AeroVironment in a report on Thursday. Finally, BTIG Research restated a “buy” rating and issued a $245.00 target price on shares of AeroVironment in a report on Tuesday, September 17th. One analyst has rated the stock with a hold rating, six have given a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Buy” and a consensus target price of $211.83.

Insider Transactions at AeroVironment

In related news, CFO Kevin Patrick Mcdonnell sold 396 shares of the firm’s stock in a transaction dated Monday, December 2nd. The shares were sold at an average price of $198.73, for a total value of $78,697.08. Following the transaction, the chief financial officer now owns 16,472 shares of the company’s stock, valued at $3,273,480.56. This trade represents a 2.35 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. In the last quarter, insiders sold 1,782 shares of company stock worth $373,609. 1.27% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the stock. Baillie Gifford & Co. increased its stake in AeroVironment by 29.1% in the 3rd quarter. Baillie Gifford & Co. now owns 1,951,393 shares of the aerospace company’s stock worth $391,254,000 after buying an additional 439,717 shares during the period. State Street Corp increased its stake in AeroVironment by 0.5% in the 3rd quarter. State Street Corp now owns 1,582,871 shares of the aerospace company’s stock worth $317,366,000 after buying an additional 7,471 shares during the period. Geode Capital Management LLC increased its position in AeroVironment by 0.8% during the 3rd quarter. Geode Capital Management LLC now owns 634,189 shares of the aerospace company’s stock valued at $127,180,000 after purchasing an additional 4,948 shares during the period. Heard Capital LLC increased its position in AeroVironment by 25.5% during the 3rd quarter. Heard Capital LLC now owns 592,136 shares of the aerospace company’s stock valued at $118,723,000 after purchasing an additional 120,447 shares during the period. Finally, Wellington Management Group LLP increased its position in AeroVironment by 155.1% during the 3rd quarter. Wellington Management Group LLP now owns 321,479 shares of the aerospace company’s stock valued at $64,457,000 after purchasing an additional 195,443 shares during the period. Hedge funds and other institutional investors own 86.38% of the company’s stock.

AeroVironment Stock Down 1.4 %

The company has a current ratio of 4.26, a quick ratio of 3.04 and a debt-to-equity ratio of 0.01. The firm has a market cap of $4.61 billion, a PE ratio of 94.34 and a beta of 0.45. The business’s 50-day simple moving average is $208.20 and its 200 day simple moving average is $194.17.

AeroVironment Company Profile

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.