The Rejuvenation of AeroVironment Inc. (NASDAQ:AVAV)

The Rejuvenation of AeroVironment Inc. (NASDAQ:AVAV)


The AeroVironment Inc. (AVAV) shares are trading at higher $78.85 and the avg recommendation for the stock is Moderate Buy. The current analyst price target stands at $68.60.

To add more color to this target, the company’s high over the last year is $79.54 and the low is $45.00. Over the last 52 weeks, AVAV is down -0.87% while the S&P 500 is up 1.07%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, AVAV reported a profit of $53.17 million. AeroVironment Inc. also saw revenues increase to $135.22 million. In addition, AVAV has free cash flow of $13.88 million as of 04-2020 The company’s EBITDA came in at $24.08 million which compares well with its peers.

AVAV booked profit margins of 9.20%, its Return on Equity (ROE) is 6.10%, and its Return on Assets is 5.50%. All told, it is clear that, AVAV needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. AVAV has a short ratio of 6.10 and outstanding shares of 23.82M.

Company Outlook

AVAV has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.34 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 1.24. AeroVironment Inc. AVAV also noted assets of $584.95 million at the end of the last quarter. Investors should also keep an eye on sector updates as AVAV has historically followed its peers on positive news.

All told, AeroVironment Inc. AVAV has strung together solid data and demonstrated underlying fundamentals. At its current valuation, AVAV represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

AeroVironment Inc. AVAV is now commanding a market cap of 1.95B and a float of 21.88M. AVAV is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of AVAV stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in AVAV, either long or short, and we have not been compensated for this article.