AeroVironment (AVAV) Stock Trades Up, Here Is Why

What Happened?

Shares of aerospace and defense company AeroVironment (NASDAQ:AVAV) jumped 3.7% in the afternoon session after the company unveiled a new advanced payload for its JUMP 20 uncrewed autonomous system (UAS), the Arkeus Hyperspectral Optical Radar (HSOR). 

The company described the technology as a "transformative step forward in reconnaissance technology," designed to provide comprehensive situational awareness even in degraded visual conditions by using hyperspectral imaging to analyze materials' unique spectral signatures. This development allows for rapid environmental analysis, such as determining water depth and foliage density, day or night. 

Adding to the positive sentiment, BTIG set a new price target for AeroVironment at $300. The news follows a series of recent positive announcements, including a successful first-ever air launch of its Switchblade 600 from an MQ-9A Reaper and plans for European expansion with a new office in the United Kingdom.

After the initial pop the shares cooled down to $250.36, up 1.3% from previous close.

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What Is The Market Telling Us

AeroVironment’s shares are very volatile and have had 24 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 3 days ago when the stock gained 4.3% on the news that the company announced it had secured a nearly $240 million order for its long-haul laser communications terminals. 

The contract, from an undisclosed customer, will see the advanced systems deployed in orbit. These terminals enable the high-speed, high-bandwidth transfer of data between satellites across different orbital altitudes. The company highlighted this as a significant milestone, transitioning its next-generation technology from successful demonstrations in the lab to actual deployment in space. This order validates AeroVironment's capabilities in the growing space communications market and indicates the company is prepared to scale manufacturing to meet customer demand for these advanced systems.

AeroVironment is up 60% since the beginning of the year, but at $250.36 per share, it is still trading 12.1% below its 52-week high of $284.95 from June 2025. Investors who bought $1,000 worth of AeroVironment’s shares 5 years ago would now be looking at an investment worth $3,915.

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