Key Points
AeroVironment, Inc. (AVAV) closed lower today as the stock slipped from a previous close of $279.46 to $265.62, finishing down 4.95% on the session. The move equates to shares declining $13.84, marking a notable pullback ahead of the company’s next scheduled earnings update. Today’s action leaves the stock below short-term momentum thresholds that had supported prices through recent rebounds, and keeps the tape volatile heading into December.
Trading unfolded on below-average volume, which points to a lack of aggressive conviction behind the selling. The stock remains 36% below its 52-week high of $417.86, underscoring the scale of the drawdown since October’s peak. Technically, the $260–$270 zone is emerging as an area of near-term interest, with $250 as a psychological line that has seen previous buying interest. On the upside, the $280 level now acts as initial resistance, followed by the round-number $300 level that coincides with prior breakdown points.
In recent sessions, the pattern has been one of lower highs and choppy bounces, consistent with profit-taking after a strong multi-quarter run. Broader Industrials trading was mixed, and there was no sector-wide catalyst specific to defense or drone names today. Against that backdrop, the fade in AVAV appears dominated by positioning and sentiment as investors square up ahead of the next catalyst window. With peers showing only modest divergences, today’s drift lower in AVAV looks more technical than fundamental, but the continued volatility profile keeps intraday swings elevated relative to the broader market.
Why AeroVironment, Inc. Price is Moving
AVAV finished at $265.62, giving the company a market capitalization of $13.89 billion. The shares sit well below the 52-week high of $417.86, with the 52-week range spanning $102.25 to $417.86. On fundamentals, trailing twelve-month EPS stands at -$0.65, reflecting losses despite top-line expansion over the past year. Volume tracked below typical levels today, which can amplify price moves when liquidity is thinner and order flow is one-sided.
There was no earnings report, regulatory update, or major corporate action announced on December 1, 2025. The company’s next earnings release is slated for December 9, and analysts have generally maintained constructive views in recent weeks, with published price targets reportedly ranging from $300 to $415. The absence of a sector-wide defense or drone catalyst points to technical and sentiment factors driving the 5% decline. Context matters: AVAV rallied to an October high above $400 and has since undergone a sharp pullback, leaving shares 36% below the peak. Recent fundamentals are a mix — full-year 2025 revenue grew 14.5% to $820.6 million, but earnings fell 26.9% to $43.6 million and net margins are negative at -4.14%. Coupled with a forward P/E around 65.5, investors appear sensitive to valuation and competition narratives as larger defense and tech players invest in autonomous systems.
From an analytical lens, the latest quarterly cadence shows momentum: the most recent quarter (08/02/2025) posted $454.68 million in revenue versus $275.05 million in the prior quarter (04/30/2025), a 65.3% sequential jump. Yet the market remains focused on profitability durability and the path to margin improvement. With trailing losses, a premium valuation on forward earnings, and heightened expectations into the upcoming report, short-term positioning can swing quickly. Today’s lower-volume selloff suggests profit-taking and defensive positioning into the event window rather than a shift driven by new fundamental information.
What is the AeroVironment, Inc. Rating - Should I Sell or Buy?
Weiss Ratings assigns AVAV a C rating. Current recommendation is Hold.
The rating is built on five indices: the Weak Growth Index indicates that, despite notable top-line expansion, the growth profile is not yet translating into durable earnings, consistent with 139.96% revenue growth alongside a -4.13% profit margin. The Weak Efficiency Index highlights subpar returns on capital and operating leverage, reflected in a -433.20 P/E ratio on a trailing basis. The Excellent Solvency Index points to a strong balance sheet and capacity to meet obligations. The Good Total Return Index reflects comparatively solid risk-adjusted performance over selected periods. The Weak Volatility Index underscores elevated price swings that can amplify downside during pullbacks.
Relative to peers, the stock’s C rating places it in line with GEV (C) and slightly behind DE (C+) and HON (C+). That peer context suggests AVAV’s risk/reward is broadly comparable within Industrials, though the mix of higher volatility and premium valuation distinguishes the profile from more diversified industrial bellwethers.
In sum, a C (Hold) rating signifies a balanced risk/reward profile. Strengths in solvency and historical total return are offset by weak growth and efficiency readings, as profitability metrics and variability constrain conviction. For investors, that blend argues for selectivity: the story has attractive elements, but execution on margins and stability will be key to shifting the overall assessment. Until then, the Hold stance aligns with the mixed index readings and the current operating-financial trade-offs.
About AeroVironment, Inc.
AeroVironment, Inc. operates in the Industrials sector within the Capital Goods industry, specializing in unmanned systems and related technologies. The company focuses on designing, developing, and supplying unmanned aircraft solutions that deliver intelligence, surveillance, and reconnaissance capabilities, as well as precision effects for defense and security applications. Founded in 1971 by aeronautical innovator Paul MacCready, AeroVironment has evolved from pioneering experimental aircraft to becoming a leading provider of small unmanned aircraft systems used by military and government customers around the world.
The company’s product portfolio includes hand-launched and portable small unmanned aircraft systems such as the Raven, Puma, and Wasp families, which are designed for rapid deployment and tactical ISR at the edge. AeroVironment also develops loitering munition systems, including the Switchblade series, which combine reconnaissance with precision strike capabilities for time-sensitive targets. Its systems typically integrate proprietary autopilot software, secure digital data links, ground control stations, and modular sensor payloads to enable real-time video, targeting, and situational awareness. Beyond platforms, AeroVironment provides training, logistics support, and lifecycle services that help customers sustain readiness and mission availability across deployments.
AeroVironment’s market position rests on field-proven systems, a deep installed base with defense customers, and a track record of innovation in small UAS and tactical missile systems. The company’s differentiators include lightweight, portable designs that can be operated by small teams, integrated command-and-control solutions, and a focus on delivering reliable ISR and precision effects at the tactical level. As autonomous technologies proliferate, AeroVironment’s emphasis on mission-specific solutions and system integration remains central to its competitive stance in Capital Goods.
Investor Outlook
With a C (Hold) rating, AVAV’s near-term path hinges on whether upcoming results can improve efficiency and margins while sustaining growth. Watch the $250–$300 band for direction and volatility trends, and monitor the December 9 earnings event for updates on profitability and backlog.
See full rankings of all C-rated Industrials stocks inside the Weiss Stock Screener.