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AeroVironment, Inc. (AVAV) Stock Analysis

Falling Knife setup

SellModerate Confidence

Industrials · Aerospace & Defense

Sell if holding. Engine safety override at $160.00: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.7/10 and A.R:R 6.3:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 12%; Below-average business quality; Negative price momentum.

AeroVironment is a defense technology company delivering autonomous systems (Switchblade, Raven, JUMP), counter-UAS, space, cyber, and directed energy solutions; it acquired BlueHalo on May 1, 2025. U.S. government revenue (including FMS) was approximately 75% of fiscal 2025... Read more

$160.00+74.1% A.UpsideScore 5.7/10#12 of 47 Aerospace & Defense
QualityF-score5 / 9FCF yield-3.72%
Stop $151.32Target $278.89(analyst − 10%)A.R:R 6.3:1
Analyst target$309.88+93.7%17 analysts
$278.89our TP
$160.00price
$309.88mean
$450

Sell if holding. Engine safety override at $160.00: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.7/10 and A.R:R 6.3:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 12%; Below-average business quality; Negative price momentum. Chart setup: Death cross, below all MAs, RSI 36, MACD bearish. Score 5.7/10, moderate confidence.

Passes 7/9 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 35d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: aggressive.

Recent Developments — AeroVironment, Inc.

Generated 2026-05-20T20:21:21Z.

Thesis

Rewards
No bull case signals
Risks
Concentration risk — Customer: U.S. government (75.0%)
Concentration risk — Customer: Ukraine (18.0%)
Quality below floor (2.2 < 4.0)

Key Metrics

P/E (TTM)
P/E (Fwd)39.9
Mkt Cap$8.2B
EV/EBITDA54.7
Profit Mgn-13.9%
ROE-8.7%
Rev Growth143.4%
Beta1.35
DividendNone
Rating analysts25

Quality Signals

Piotroski F5/9MoatNarrow

Options Flow

P/C1.26bearish
IV78%elevated

Concentration Risks(10-K Item 1A)

  • HIGHCustomerU.S. government75%
    10-K Item 1A: 'Sales to the U.S. government, either as a prime contractor or subcontractor and inclusive of foreign military sales, represented approximately 75% of our revenue for the fiscal year ended April 30, 2025.'
  • HIGHCustomerUkraine18%
    10-K Item 1: 'Ukraine accounted for 18% of our total sales revenue.'
  • MEDIUMCustomerU.S. Army20%
    10-K Item 1: 'we generated approximately 20% of our revenue from the U.S. Army pursuant to orders placed under contract by the U.S. Army on behalf of itself as well as for several other organizations within the U.S. DoD.'

Material Events(8-K, last 90d)

  • 2026-02-23Item 5.02HIGH
    CFO Kevin McDonnell notified AeroVironment of decision to retire effective July 31, 2026. No successor named at time of filing; Company to search for replacement.
    SEC filing →
  • 2026-03-05Item 5.02LOW
    Compensation Committee approved Non-Qualified Deferred Compensation Plan for key employees and non-employee directors, effective March 1, 2026. Compensatory arrangement only.
    SEC filing →
  • 2026-03-18Item 5.02MEDIUM
    COO Brad Truesdell notified Company of intent to retire upon appointment of successor. Truesdell to continue as principal operating officer until successor in place; no successor named at time of filing.
    SEC filing →
  • 2026-04-09Item 5.02MEDIUM
    Robert Smith appointed EVP and COO effective April 13, 2026, succeeding Brad Truesdell who is retiring. Truesdell to remain in advisory role through April 30, 2026, then consulting role.
    SEC filing →
  • 2026-04-13Item 5.02MEDIUM
    Sean Woodward appointed EVP and CFO effective May 1, 2026, succeeding Kevin McDonnell who remains CFO through April 30, 2026 then transitions to non-officer role through retirement date of July 31, 2026.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

2 floor-breakers·1 ceiling hit

Unprofitable operations — net margin -13.9%. Quality floor flags this regardless of sector context.static

Roe
0.0
Roa
0.0
Operating Margin
0.0
Net Margin
0.0
Fcf Quality
0.0
Gross Margin
1.0
Piotroski F
5.6
Moat
5.8
Current Ratio
7.5
Cash-burning: FCF -19% of revenueQuality concerns

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Macd
0.0
Ma Position
1.0
Volume
1.1
Rsi
3.5
Obv
10.0
Volume accumulation (rising OBV)Below 200-MA, MA slope -3.9%/30d — confirmed downtrend
GatesMomentum 3.1<4.5Death cross (50MA < 200MA)A.R:R 6.3 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 35d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARFalling KnifeSuitability: Aggressive
RSI
36 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $156.00Resistance $219.20

Price Targets

$151
$279
A.Upside+74.3%
A.R:R6.3:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Quality below floor (2.2 < 4.0)
! Momentum score 3.1/10 — below 4.5 minimum
! Death cross — 50-day MA below 200-day MA

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-06-23 (35d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is AVAV stock a buy right now?

Sell if holding. Engine safety override at $160.00: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.7/10 and A.R:R 6.3:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 12%; Below-average business quality; Negative price momentum. Chart setup: Death cross, below all MAs, RSI 36, MACD bearish. Prior stop was $151.32. Score 5.7/10, moderate confidence.

What is the AVAV stock price target?

Take-profit target: $278.89 (+74.1% upside). Prior stop was $151.32. Stop-loss: $151.32.

What are the risks of investing in AVAV?

Concentration risk — Customer: U.S. government (75.0%); Concentration risk — Customer: Ukraine (18.0%); Quality below floor (2.2 < 4.0).

Is AVAV overvalued or undervalued?

AeroVironment, Inc. trades at a P/E of N/A (forward 39.9). TrendMatrix value score: 7.1/10. Verdict: Sell.

What do analysts say about AVAV?

25 analysts cover AVAV with a consensus score of 4.2/5. Average price target: $310.

What does AeroVironment, Inc. do?AeroVironment is a defense technology company delivering autonomous systems (Switchblade, Raven, JUMP), counter-UAS,...

AeroVironment is a defense technology company delivering autonomous systems (Switchblade, Raven, JUMP), counter-UAS, space, cyber, and directed energy solutions; it acquired BlueHalo on May 1, 2025. U.S. government revenue (including FMS) was approximately 75% of fiscal 2025 revenue, with Ukraine at 18% and the U.S. Army at 20%. The company serves U.S. DoD branches, intelligence agencies, and allied governments worldwide.

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