AeroVironment, Inc. (NASDAQ:AVAV) stock fell Wednesday following a recent announcement regarding a $75 million task order awarded by the United States Air Force.
This news comes as the broader market is mixed, with the S&P 500 slightly up while the Russell 2000 is down.
AeroVironment Secures $75M Air Force Contract
The task order focuses on advancing biotechnology and materials science to enhance Air Force readiness and extend the life of critical assets. Under this program, AeroVironment will develop next-generation materials and processing methods to improve the performance and resilience of various Air Force systems.
The initiative will span over 60 months, integrating biologically driven methods for material degradation and rare earth extraction, alongside advancements in flexible electronics and synthetic biology. This collaboration underscores AeroVironment’s commitment to pushing scientific frontiers in support of national defense.
AeroVironment shares fell last week after the company was flagged by Benzinga as one of the market’s top decliners, with the stock dropping nearly 20% over the period. The move lower was driven primarily by news of a U.S. government stop-work order on the company’s SCAR defense program, which raised concerns about potential revenue delays and contract uncertainty. The development pressured investor sentiment, leading to heavier selling in the stock.
AVAV Faces Short-Term Trading Weakness
The stock is currently trading 5% below its 20-day simple moving average (SMA) and 1.5% below its 100-day SMA, indicating some short-term weakness. Over the past 12 months, shares have increased by 74.11% and are currently positioned closer to their 52-week highs than lows.
The RSI is at 48.62, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold. Meanwhile, MACD is below its signal line, indicating bearish pressure on the stock.
The combination of neutral RSI and bearish MACD suggests mixed momentum.
- Key Resistance: N/A
- Key Support: $257.00
AVAV Earnings Forecast and Analyst Ratings
Investors are looking ahead to the next earnings report on March 3, 2026.
- EPS Estimate: $0.74 (Up from $0.30 YoY)
- Revenue Estimate: $484.71 million (Up from $167.64 million YoY)
Analyst Consensus & Recent Actions:
The stock carries a Buy Rating with an average price target of $363.12. Recent analyst moves include:
- Keybanc: Overweight (Raises Target to $330.00) (Jan. 28)
- BTIG: Buy (Maintains Target to $415.00) (Jan. 26)
- Keybanc: Initiated with Overweight (Target $285.00) (Dec. 19, 2025)
AVAV’s Significant ETF Exposure
- State Street SPDR S&P Aerospace & Defense ETF (NYSE:XAR): 3.77% Weight
- SPDR S&P Aerospace & Defense ETF (NYSE:XAR): 4.49% Weight
- Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ): 3.07% Weight
Significance: Because AVAV carries significant weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.
AVAV Price Action: AeroVironment shares were down 1.61% at $304.57 at the time of publication on Wednesday, according to Benzinga Pro data.
Photo by Piotr Swat via Shutterstock
