Is AeroVironment Stock a Good Investment?

AeroVironment Investment Advice

AVAV

To provide specific investment advice or recommendations on AeroVironment stock, we recommend investors consider the following general factors when evaluating AeroVironment. This will help you to make an informed decision on whether to include AeroVironment in one of your diversified portfolios:

Examine AeroVironment's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research AeroVironment's leadership team and their track record. Good management can help AeroVironment navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Aerospace & Defense space and any emerging trends that could impact AeroVironment's business and its evolving consumer preferences.
Compare AeroVironment's performance and market position to its competitors. Analyze how AeroVironment is positioned in terms of product offerings, innovation, and market share.
Check if AeroVironment pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about AeroVironment's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in AeroVironment stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if AeroVironment is a good investment.

Sell

Buy

Strong Buy

Macroaxis provides advice on AeroVironment to complement and cross-verify current analyst consensus on AeroVironment. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure AeroVironment is not overpriced, please confirm all AeroVironment fundamentals, including its price to sales, book value per share, retained earnings, as well as the relationship between the cash and equivalents and target price . Given that AeroVironment has a price to earning of 71.89 X, we suggest you to validate AeroVironment market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance	Good	Details
Volatility	Very steady	Details
Hype Condition	Over hyped	Details
Current Valuation	Overvalued	Details
Odds Of Distress	Low	Details
Economic Sensitivity	Almost mirrors the market	Details
Investor Sentiment	Alarmed	Details
Analyst Consensus	Strong Sell	Details
Financial Strenth (F Score)	Strong	Details
Financial Leverage	Inapplicable	Details
Reporting Quality (M-Score)	Unavailable	Details

Examine AeroVironment Stock

Researching AeroVironment's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 88.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.72. AeroVironment recorded a loss per share of 4.43. The entity had not issued any dividends in recent years.

To determine if AeroVironment is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding AeroVironment's research are outlined below:

	AeroVironment appears to be risky and price may revert if volatility continues
	The company reported the previous year's revenue of 540.54 M. Net Loss for the year was (176.17 M) with profit before overhead, payroll, taxes, and interest of 173.51 M.
	AeroVironment has a strong financial position based on the latest SEC filings
	Over 88.0% of the company shares are held by institutions such as insurance companies
	Latest headline from scmp.com: Pentagons Switchblade 600 drone gets funding for China fight

AeroVironment Quarterly Liabilities And Stockholders Equity

980.3 Million

AeroVironment uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in AeroVironment. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to AeroVironment's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	4th of March 2024 Upcoming Quarterly Report	View
	25th of June 2024 Next Financial Report	View
	31st of January 2024 Next Fiscal Quarter End	View
	25th of June 2024 Next Fiscal Year End	View
	31st of October 2023 Last Quarter Report	View
	30th of April 2023 Last Financial Announcement	View

Earnings surprises can significantly impact AeroVironment's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises AeroVironment's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2014-11-25	2014-10-31	-0.11	-0.13	-0.02	18
2012-09-05	2012-07-31	-0.03	-0.06	-0.03	100
2008-06-24	2008-04-30	0.27	0.3	0.03	11
2007-12-04	2007-10-31	0.21	0.24	0.03	14
2020-09-09	2020-07-31	0.4	0.44	0.04	10
2018-03-06	2018-01-31	0.05	0.09	0.04	80
2015-03-03	2015-01-31	0.06	0.1	0.04	66
2008-09-09	2008-07-31	0.18	0.22	0.04	22

AeroVironment Analyst Ratings

AeroVironment's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about AeroVironment stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of AeroVironment's financials, market performance, and future outlook by experienced professionals. AeroVironment's historical ratings below, therefore, can serve as a valuable tool for investors.

Know AeroVironment's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as AeroVironment is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading AeroVironment backward and forwards among themselves. AeroVironment's institutional investor refers to the entity that pools money to purchase AeroVironment's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Nikko Asset Management Americas Inc	2023-12-31	378.1 K
Morgan Stanley - Brokerage Accounts	2023-12-31	366.2 K
Bank Of New York Mellon Corp	2023-12-31	365.3 K
Congress Asset Management Company, Llp	2024-03-31	350.7 K
Sumitomo Mitsui Trust Holdings Inc	2024-03-31	329 K
Nuveen Asset Management, Llc	2023-12-31	303.4 K
Mirae Asset Global Investments (korea) Co Ltd	2023-12-31	288.2 K
Northern Trust Corp	2023-12-31	278.3 K
Amvescap Plc.	2023-12-31	262.9 K
Blackrock Inc	2023-12-31	4.5 M
Vanguard Group Inc	2023-12-31	2.9 M

Note, although AeroVironment's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

AeroVironment's market capitalization trends

The company currently falls under 'Mid-Cap' category with a current market capitalization of 5.11 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate AeroVironment's market, we take the total number of its shares issued and multiply it by AeroVironment's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.

Market Cap

2.41 Billion

AeroVironment's profitablity analysis

AeroVironment's profitability indicators refer to fundamental financial ratios that showcase AeroVironment's ability to generate income relative to its revenue or operating costs. If, let's say, AeroVironment is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, AeroVironment's executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of AeroVironment's profitability requires more research than a typical breakdown of AeroVironment's financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.

	Last Reported	Projected for Next Year
Return On Tangible Assets	(0.33)	(0.32)
Return On Capital Employed	(0.04)	(0.04)
Return On Assets	(0.24)	(0.23)
Return On Equity	(0.36)	(0.34)

The company has Profit Margin (PM) of (0.15) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of 0.08 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.08.

Determining AeroVironment's profitability involves analyzing its financial statements and using various financial metrics to determine if AeroVironment is a good buy. For example, gross profit margin measures AeroVironment's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of AeroVironment's profitability and make more informed investment decisions.

The data published in AeroVironment's official financial statements usually reflect AeroVironment's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of AeroVironment. For example, before you start analyzing numbers published by AeroVironment accountants, it's critical to develop an understanding of what AeroVironment's liquidity, profitability, and earnings quality are in the context of the Aerospace & Defense space in which it operates.

Please note, the presentation of AeroVironment's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, AeroVironment's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in AeroVironment's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of AeroVironment. Please utilize our Beneish M Score to check the likelihood of AeroVironment's management manipulating its earnings.

Evaluate AeroVironment's management efficiency

AeroVironment has return on total asset (ROA) of 0.068 % which means that it generated a profit of $0.068 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.149) %, meaning that it created substantial loss on money invested by shareholders. AeroVironment's management efficiency ratios could be used to measure how well AeroVironment manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to climb to -0.32 in 2024. Return On Capital Employed is likely to climb to -0.04 in 2024. At this time, AeroVironment's Asset Turnover is fairly stable compared to the past year.

	Last Reported	Projected for Next Year
Book Value Per Share	19.80	11.08
Net Current Asset Value	0.00	0.00
Tangible Asset Value	0.00	0.00
Tangible Book Value Per Share	11.74	9.28
Enterprise Value Over EBITDA	30.11	19.62
Price Book Value Ratio	5.31	6.52
Enterprise Value Multiple	30.11	19.62
Price Fair Value	5.31	6.52
Enterprise Value	2.3 B	2.4 B

The analysis of AeroVironment's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze AeroVironment's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of AeroVironment Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.

Beta

0.448

Basic technical analysis of AeroVironment Stock

As of the 9th of May, AeroVironment shows the Mean Deviation of 2.21, downside deviation of 2.3, and Risk Adjusted Performance of 0.1069. AeroVironment technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to analyze nineteen technical drivers for AeroVironment, which can be compared to its peers. Please confirm AeroVironment standard deviation, maximum drawdown, as well as the relationship between the Maximum Drawdown and expected short fall to decide if AeroVironment is priced correctly, providing market reflects its regular price of 187.33 per share. Given that AeroVironment has jensen alpha of 0.5737, we suggest you to validate AeroVironment's prevailing market performance to make sure the company can sustain itself at a future point.

AeroVironment's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific AeroVironment insiders, such as employees or executives, is commonly permitted as long as it does not rely on AeroVironment's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases AeroVironment insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Kevin McDonnell over a month ago Disposition of 304 shares by Kevin McDonnell of AeroVironment at 146.42 subject to Rule 16b-3
		Wright Stephen C over three months ago Exercise or conversion by Wright Stephen C of 8000 shares of AeroVironment subject to Rule 16b-3
		Brian Shackley over six months ago Sale by Brian Shackley of 475 shares of AeroVironment
		Stevenson Trace E over six months ago Acquisition by Stevenson Trace E of 1026 shares of AeroVironment subject to Rule 16b-3
		Brian Shackley over a year ago Payment of 223 shares by Brian Shackley of AeroVironment subject to Rule 16b-3

Understand AeroVironment's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing AeroVironment's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.1069
	Market Risk Adjusted Performance	0.6065
	Mean Deviation	2.21
	Semi Deviation	1.81
	Downside Deviation	2.3
	Coefficient Of Variation	629.35
	Standard Deviation	4.21
	Variance	17.76
	Information Ratio	0.1381
	Jensen Alpha	0.5737
	Total Risk Alpha	0.1304
	Sortino Ratio	0.2528
	Treynor Ratio	0.5965
	Maximum Drawdown	34.38
	Value At Risk	(3.33)
	Potential Upside	5.73
	Downside Variance	5.3
	Semi Variance	3.28
	Expected Short fall	(2.66)
	Skewness	4.29
	Kurtosis	27.1

	Risk Adjusted Performance	0.1069
	Market Risk Adjusted Performance	0.6065
	Mean Deviation	2.21
	Semi Deviation	1.81
	Downside Deviation	2.3
	Coefficient Of Variation	629.35
	Standard Deviation	4.21
	Variance	17.76
	Information Ratio	0.1381
	Jensen Alpha	0.5737
	Total Risk Alpha	0.1304
	Sortino Ratio	0.2528
	Treynor Ratio	0.5965
	Maximum Drawdown	34.38
	Value At Risk	(3.33)
	Potential Upside	5.73
	Downside Variance	5.3
	Semi Variance	3.28
	Expected Short fall	(2.66)
	Skewness	4.29
	Kurtosis	27.1

Consider AeroVironment's intraday indicators

AeroVironment intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of AeroVironment stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	30087.35
	Daily Balance Of Power	0.5935
	Rate Of Daily Change	1.03
	Day Median Price	185.18
	Day Typical Price	185.89
	Price Action Indicator	5.09
	Period Momentum Indicator	5.87

AeroVironment Corporate Filings

F4	8th of April 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
8K	8th of March 2024 An amendment to a previously filed Form 8-K	View Verify
10Q	5th of March 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations	View Verify
8K	4th of March 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify

AeroVironment time-series forecasting models is one of many AeroVironment's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary AeroVironment's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

AeroVironment Stock media impact

Far too much social signal, news, headlines, and media speculation about AeroVironment that are available to investors today. That information is available publicly through AeroVironment media outlets and privately through word of mouth or via AeroVironment internal channels. However, regardless of the origin, that massive amount of AeroVironment data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of AeroVironment news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of AeroVironment relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to AeroVironment's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive AeroVironment alpha.

AeroVironment Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards AeroVironment can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

AeroVironment Historical Investor Sentiment

Investor biases related to AeroVironment's public news can be used to forecast risks associated with an investment in AeroVironment. The trend in average sentiment can be used to explain how an investor holding AeroVironment can time the market purely based on public headlines and social activities around AeroVironment. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

AeroVironment's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for AeroVironment and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average AeroVironment news discussions. The higher the estimate score, the more favorable the investor's outlook on AeroVironment.

AeroVironment Maximum Pain Price across 2024-05-17 Option Contracts

AeroVironment's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of AeroVironment close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of AeroVironment's options.

Be your own money manager

Our tools can tell you how much better you can do entering a position in AeroVironment without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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AeroVironment Corporate Management

Elected by the shareholders, the AeroVironment's board of directors comprises two types of representatives: AeroVironment inside directors who are chosen from within the company, and outside directors, selected externally and held independent of AeroVironment. The board's role is to monitor AeroVironment's management team and ensure that shareholders' interests are well served. AeroVironment's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, AeroVironment's outside directors are responsible for providing unbiased perspectives on the board's policies.

Church Hutton	VP Relations	Profile
Melissa JD	General VP	Profile
Brett Hush	Senior Systems	Profile
Jonah TeeterBalin	Senior Relations	Profile
Jeff Rodrian	Senior Group	Profile
Trace Stevenson	Senior Systems	Profile
Regine Lawton	VP Officer	Profile

How to buy AeroVironment Stock?

Examine AeroVironment's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research AeroVironment's leadership team and their track record. Good management can help AeroVironment navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Aerospace & Defense space and any emerging trends that could impact AeroVironment's business and its evolving consumer preferences.
Compare AeroVironment's performance and market position to its competitors. Analyze how AeroVironment is positioned in terms of product offerings, innovation, and market share.
Check if AeroVironment pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about AeroVironment's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

Already Invested in AeroVironment?

The danger of trading AeroVironment is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of AeroVironment is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than AeroVironment. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile AeroVironment is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.

When determining whether AeroVironment is a strong investment it is important to analyze AeroVironment's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact AeroVironment's future performance. For an informed investment choice regarding AeroVironment Stock, refer to the following important reports: