Investors in AeroVironment, Inc. (AVAV) need to pay close attention to the stock based on moves in the options market lately. That is because the Dec. 20, 2024 $300 Put had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could als ...

The latest trading session saw AeroVironment (AVAV) ending at $220.80, denoting a -0.05% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.27%. Meanwhile, the Dow experienced a rise of 0.65%, and the technology-dominated Nasdaq saw an increase of 0.26%. The maker of unmanned aircrafts's shares have seen an increase of 10.88% over the last month, surpassing the Aerospace sector's loss of 4.51% and the S&P 500's gain of 2%. Market participants will be closely ...

The company will continue production during a contract protest.The U.S. Army has instructed AeroVironment (AVAV 11.95%) to continue working to fulfill a $990 million order, despite an ongoing protest of the award. Investor are cheering the move, sending AeroVironment shares up 11% as of 2:30 p.m. ET.U.S. Army gives the green lightAeroVironment is a supplier of small-to-midsized unmanned aerial vehicles (UAV) to the U.S. military and other customers. Its Switchblade loitering munition has been a mainstay in ...

A protest results in a stop work order from the company's largest client.On a generally good Monday for the stock market, AeroVironment (AVAV -9.68%) was a notable exception. The specialized defense company saw its share price sink by almost 10% that day, due to a work stoppage on a very lucrative arrangement between the company and the U.S. government. By contrast, the S&P 500 index, largely free of such burdens, inched 0.1% higher on the day.Drone disputeAeroVironment, which focuses on developing and manu ...

Investors interested in Aerospace stocks should always be looking to find the best-performing companies in the group. Is AeroVironment (AVAV) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.AeroVironment is a member of our Aerospace group, which includes 46 different companies and currently sits at #2 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the ind ...

koto_feja AeroVironment (NASDAQ:AVAV) is a rising powerhouse in the UAV (unmanned aerial vehicle) industry. The company has performed especially well over the past few years as a result of UAVs growing success on the battlefield. AeroVironment is in a great position to capitalize on the rise of UAV technologies given its robust product portfolio, strategic position in the defense industry, and its involvement in an escalating Ukrainian-Russian war. Innovative Product Portfolio AeroVironment is increasingly ...

AeroVironment (AVAV) closed the last trading session at $179.47, gaining 2% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $225.17 indicates a 25.5% upside potential.The average comprises six short-term price targets ranging from a low of $210 to a high of $245, with a standard deviation of $12.50. While the lowest estimate indicates an increase of 17% from the current price level ...

Investors had reason to cheer last week. But the valuation on this drone stock remains sky high.I've been following military drone manufacturer AeroVironment (AVAV -2.32%) for a very long time -- ever since it was just a newborn babe of a defense stock after its 2007 initial public offering (IPO), in fact. And I have to tell you that, over all this time, I've never seen AeroVironment win a defense contract as big as the one that it won last Tuesday: $1 billion.Well, $990 million to be exact.The Aug. 27 edit ...

mrdoomits/iStock via Getty Images Introduction On September 2, Seeking Alpha published an interesting article titled "SA Asks: Which defense stocks are most attractive right now?" I was humbled to be part of the panel. Here's a part of my answer (emphasis added): The most attractive defense companies are the ones that focus on at least two things: advanced defense projects and international demand. The defense environment is rapidly changing, fueled by the war in Ukraine, which shows that the “war o ...

Revenue and Income - Revenue for the three months ended July 27, 2024, was $189.5 million, an increase of 24.4% compared to $152.3 million for the same period in 2023[173]. - Revenue for the three months ended July 27, 2024, was $189.5 million, an increase of $37.2 million, or 24%, compared to $152.3 million for the same period in 2023[176]. - Net income for the three months ended July 27, 2024, was $21.2 million, slightly down from $21.9 million in the same period of 2023[173]. - The company reported an income from operations of $23.1 million for the three months ended July 27, 2024, compared to $26.4 million in the same period of 2023[173]. Expenses - Gross margin for the three months ended July 27, 2024, was $81.5 million, representing a gross margin percentage of 43.0%, up from $65.7 million and 43.1% in the prior year[173]. - Research and development expenses increased to $24.6 million for the three months ended July 27, 2024, compared to $15.5 million in the same period of 2023, reflecting a 59.2% increase[173]. - SG&A expenses for the three months ended July 27, 2024, were $33.8 million, or 18% of revenue, compared to $23.8 million, or 16% of revenue, for the same period in 2023[178]. - R&D expenses for the three months ended July 27, 2024, were $24.6 million, or 13% of revenue, compared to $15.5 million, or 10% of revenue, for the same period in 2023[179]. - Cost of sales for the three months ended July 27, 2024, was $108.0 million, an increase of $21.3 million, or 25%, compared to $86.7 million in the prior year[177]. Segment Performance - The company has three reportable segments: Uncrewed Systems (UxS), Loitering Munitions Systems (LMS), and MacCready Works (MW), with segment revenue and adjusted gross margin reported for each[173]. - UxS revenue for the three months ended July 27, 2024, was $120.0 million, representing an increase of $21.8 million, or 22%, compared to $98.2 million in the prior year[183]. - LMS revenue for the three months ended July 27, 2024, was $52.0 million, an increase of $21.1 million, or 68%, compared to $30.9 million for the same period in 2023[186]. - Product sales increased by $40.0 million, primarily driven by a $21.9 million increase from Switchblade products and a $19.1 million increase from UxS products[176]. Cash Flow and Liquidity - For the three months ended July 27, 2024, net cash provided by operating activities increased by $45.4 million to $28.4 million, compared to a net cash used of $(17.1) million for the same period in 2023[204]. - The net cash used in investing activities increased by $3.0 million to $6.6 million for the three months ended July 27, 2024, primarily due to increased property and equipment acquisitions[205]. - The company anticipates funding its normal recurring trade payables and ongoing R&D costs through existing working capital and cash provided by operating activities, which are expected to be sufficient for the next twelve months[197]. - The company’s liquidity needs include financing working capital, investing in capital expenditures, and supporting product development efforts[198]. Backlog and Contracts - Funded backlog as of July 27, 2024, was approximately $372.9 million, down from $400.2 million as of April 30, 2024[190]. - The company’s backlog is subject to large variations and does not guarantee future sales, as many contracts do not obligate the U.S. government to purchase goods or services[194]. - The company received $128 million of initial funding under a new IDIQ contract for LMS systems with a ceiling value of $990 million in August 2024[190]. Goodwill and Impairment - The MUAS reporting unit had a goodwill balance of $135.8 million as of July 27, 2024, following a goodwill impairment charge of $156.0 million recognized in the fiscal year ended April 30, 2023[168]. - The estimated fair value of the MUAS reporting unit does not substantially exceed its carrying value, indicating an increased risk of future impairment[168]. Tax and Interest - The effective income tax rate for the three months ended July 27, 2024, was 6.6%, compared to 5.7% for the same period in 2023[181]. - Interest expense decreased significantly to $239,000 for the three months ended July 27, 2024, from $2.0 million in the prior year[173]. - The current outstanding balance of the Credit Facilities is $17.5 million, which bears a variable interest rate, and the company is exposed to increased interest costs due to rising market rates[210]. Capital Contributions and Acquisitions - The company paid a total purchase price of $134.4 million for the Tomahawk acquisition, consisting of $109.8 million in stock and $24.2 million in cash on hand[202]. - The company has committed to make capital contributions totaling $20.0 million to a limited partnership fund, with $10.0 million remaining as of July 27, 2024[202]. Adjustments and Revenue Recognition - Favorable cumulative catch-up adjustments in revenue for the three months ended July 27, 2024, amounted to $0.8 million, while unfavorable adjustments were $0.3 million[161].