AeroVironment Stock Options Experience Significant Increase in Implied Volatility
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 22 2025
0mins
Should l Buy AVAV?
Source: NASDAQ.COM
Options Market Activity: Investors should monitor AeroVironment, Inc. (AVAV) due to high implied volatility in its September 19, 2025 $70.00 Call option, indicating expectations of significant stock movement.
Analyst Sentiment: Currently rated as a Zacks Rank #4 (Sell), no analysts have increased earnings estimates for AeroVironment in the last 60 days, leading to a decrease in the consensus estimate from $1.20 to $0.71 per share.
Trading Strategy Insight: The high implied volatility suggests potential trading opportunities, particularly for options traders who may look to sell premium and benefit from stock price stability at expiration.
Investment Recommendations: Zacks Investment Research offers access to stock recommendations and strategies that have historically yielded substantial gains, inviting investors to explore their private portfolio services.
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Analyst Views on AVAV
Wall Street analysts forecast AVAV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AVAV is 387.00 USD with a low forecast of 285.00 USD and a high forecast of 450.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
13 Buy
0 Hold
0 Sell
Strong Buy
Current: 236.880
Low
285.00
Averages
387.00
High
450.00
Current: 236.880
Low
285.00
Averages
387.00
High
450.00
About AVAV
AeroVironment, Inc. is a defense technology provider delivering integrated capabilities across air, land, sea, space, and cyber. The Company develops and deploys autonomous systems, precision strike systems, counter-UAS technologies, space-based platforms, directed energy systems, and cyber and electronic warfare capabilities. The Company’s segments include Autonomous Systems (AxS) and Space, Cyber, and Directed Energy (SCDE). The AxS segment focuses on the design, development, production, delivery, and support of intelligent, multi-domain robotic systems, including uncrewed aircraft systems (UAS) and ground robot systems. It includes the Company’s former Uncrewed Systems, Loitering Munitions Systems, and MacCready Works segments as well as Radio Frequency and Kinetic Counter-UAS Electronic Warfare Systems and others. The SCDE segment focuses on advanced technologies in the space domain providing space-based and ground-based platforms, cyber capabilities, and directed energy systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Aerovironment Attracts Billionaire Investors Amid Stock Pullback
- Billionaire Investor Involvement: John Overdeck's Two Sigma hedge fund acquired 27,327 shares of Aerovironment for $8.6 million, reflecting confidence in the company's robotics and autonomous vehicle technology.
- ARK Funds Increase Holdings: Cathie Wood's ARK Space & Defense Innovation ETF and ARK Autonomous Technology & Robotics ETF invested $1.6 million and $3.9 million respectively in Aerovironment, indicating optimism about its future growth potential.
- Stock Price Pullback Opportunity: With Aerovironment's stock down over 30% from its 2025 high, some Wall Street insiders view this decline as a buying opportunity, likely attracting more investor interest.
- Positive Market Reaction: Despite a stock price drop due to a government contract stop-work order, Aerovironment's shares rose 57% last year, demonstrating resilience in the market and sustained investor interest.
See More
Wall Street Insiders Quietly Buy Aerovironment Stock
- Investor Accumulation: John Overdeck's Two Sigma hedge fund acquired 27,327 shares of Aerovironment for $8.6 million, reflecting confidence in the company's growth potential amidst a competitive landscape.
- Large Transactions: Ray Dalio's Bridgewater Associates opened a new position by purchasing 11,349 shares for $3.6 million, indicating a rising interest from institutional investors in Aerovironment's stock.
- ARK Fund Involvement: Cathie Wood's ARK Space & Defense Innovation ETF and ARK Autonomous Technology & Robotics ETF invested $1.6 million and $3.9 million in Aerovironment shares respectively, further validating market recognition of the company's technology.
- Price Correction Opportunity: Following a government contract stop-work order, Aerovironment's stock has dropped over 30%, with some Wall Street insiders viewing this pullback as a buying opportunity, despite Motley Fool analysts not including it in their top investment stocks list.
See More
The Rise and Transformation of Physical AI
- Physical AI Transformation: Bank of America analyst Martyn Briggs highlights that the rise of Physical AI is underway, projected to drive a trillion-dollar market shift as value transitions from digital models to physical machines like robots, autonomous vehicles, and drones, marking a significant shift of intelligence from screens to machines.
- Humanoid Robot Production: Over 50 companies are developing humanoid robot platforms, with shipments expected to grow from tens of thousands today to millions annually over the next decade, driven by labor shortages and falling component costs, which will transform operations in manufacturing and logistics.
- Autonomous Driving Adoption: Robotaxis are operational in multiple cities, and advanced driver-assistance systems are set to achieve mass adoption in China by 2030, with hardware cost reductions significantly lowering ride-hailing and freight costs, thus transforming mobility into a software-defined, AI-driven platform.
- Investment Opportunities: Bank of America has highlighted 15 publicly traded companies exposed to Physical AI, including Nvidia, Tesla, and Qualcomm, which are leading in chips, robotics, mobility, and sensing, expected to spearhead this transformative wave.
See More
US Drone Companies Pitch Technology at Singapore Airshow Amid Regional Security Concerns
- Market Expansion Strategy: Several U.S. drone companies showcased their technology at the Singapore Airshow, aiming to move beyond Pentagon contracts to address heightened regional security concerns due to China's military expansion, indicating a strong focus on the Asia-Pacific market.
- Investment Driven by Combat Experience: The combat experience in Ukraine has spurred increased investment in U.S. drone and military AI firms, with companies like Anduril Industries and Shield AI gaining attention at the airshow, highlighting the potential of unmanned systems for future conflicts.
- Technical Collaboration Opportunities: Shield AI announced it will provide its Hivemind autonomy software to Singapore's ST Engineering, leveraging hundreds of operational hours logged by its V-BAT reconnaissance drone in Ukraine, demonstrating the reliability of its technology in combat scenarios.
- Regional Production Plans: Neros Technologies plans to establish factories across Asia to produce large numbers of expendable attack drones, reflecting the accelerating demand for unmanned systems, particularly as regional allies increase investments in defense amid uncertainties regarding China's intentions.
See More
Aerovironment Stock Volatility Amid Military Budget Proposals
- Stock Volatility: Aerovironment's stock surged 8% in early January due to President Trump's proposal to increase the 2027 military budget from $1 trillion to $1.5 trillion, but it later declined after a U.S. government stop work order on BADGER antenna systems, finishing the month up 15%.
- Revenue Growth: The company reported a 21% organic revenue growth to $227.4 million in its latest quarter, with total revenue of $472.5 million post-BlueHalo acquisition, showcasing strong performance and profitability in the drone market.
- Order Outlook: Aerovironment's total bookings reached $1.4 billion, indicating significant future growth potential, particularly as it consolidates its leadership in military unmanned aerial systems.
- Market Potential: With a current market cap of $14 billion, Aerovironment stands to achieve substantial stock price appreciation if it effectively executes its growth strategy amid advancing drone technology.
See More
Aerovironment Stock Volatility Amid Military Budget Proposal
- Military Budget Proposal Impact: President Trump's proposal to increase the 2027 military budget from $1 trillion to $1.5 trillion directly boosted Aerovironment's stock by 8% in early January, highlighting the company's sensitivity as a defense stock.
- Stock Volatility Overview: Despite a continuous rise in stock price during the first seven trading days of January, peaking in mid-January, the stock faced a decline due to a stop-work order from the U.S. government on BADGER phased array antenna systems, reflecting the market's high sensitivity to policy changes.
- Strong Financial Performance: Aerovironment reported a 21% organic revenue growth to $227.4 million in its latest quarter, with total revenue including the BlueHalo acquisition reaching $472.5 million, showcasing robust growth potential in the drone sector.
- Future Growth Outlook: The company recorded $1.4 billion in bookings, indicating a positive growth outlook, and with a current market cap of $14 billion, the stock has significant upside potential if it can effectively execute its growth strategy, consolidating its leadership in the drone market.
See More
Aerovironment Attracts Billionaire Investors Amid Stock Pullback
- Billionaire Investor Involvement: John Overdeck's Two Sigma hedge fund acquired 27,327 shares of Aerovironment for $8.6 million, reflecting confidence in the company's robotics and autonomous vehicle technology.
- ARK Funds Increase Holdings: Cathie Wood's ARK Space & Defense Innovation ETF and ARK Autonomous Technology & Robotics ETF invested $1.6 million and $3.9 million respectively in Aerovironment, indicating optimism about its future growth potential.
- Stock Price Pullback Opportunity: With Aerovironment's stock down over 30% from its 2025 high, some Wall Street insiders view this decline as a buying opportunity, likely attracting more investor interest.
- Positive Market Reaction: Despite a stock price drop due to a government contract stop-work order, Aerovironment's shares rose 57% last year, demonstrating resilience in the market and sustained investor interest.
See More
Wall Street Insiders Quietly Buy Aerovironment Stock
- Investor Accumulation: John Overdeck's Two Sigma hedge fund acquired 27,327 shares of Aerovironment for $8.6 million, reflecting confidence in the company's growth potential amidst a competitive landscape.
- Large Transactions: Ray Dalio's Bridgewater Associates opened a new position by purchasing 11,349 shares for $3.6 million, indicating a rising interest from institutional investors in Aerovironment's stock.
- ARK Fund Involvement: Cathie Wood's ARK Space & Defense Innovation ETF and ARK Autonomous Technology & Robotics ETF invested $1.6 million and $3.9 million in Aerovironment shares respectively, further validating market recognition of the company's technology.
- Price Correction Opportunity: Following a government contract stop-work order, Aerovironment's stock has dropped over 30%, with some Wall Street insiders viewing this pullback as a buying opportunity, despite Motley Fool analysts not including it in their top investment stocks list.
See More
The Rise and Transformation of Physical AI
- Physical AI Transformation: Bank of America analyst Martyn Briggs highlights that the rise of Physical AI is underway, projected to drive a trillion-dollar market shift as value transitions from digital models to physical machines like robots, autonomous vehicles, and drones, marking a significant shift of intelligence from screens to machines.
- Humanoid Robot Production: Over 50 companies are developing humanoid robot platforms, with shipments expected to grow from tens of thousands today to millions annually over the next decade, driven by labor shortages and falling component costs, which will transform operations in manufacturing and logistics.
- Autonomous Driving Adoption: Robotaxis are operational in multiple cities, and advanced driver-assistance systems are set to achieve mass adoption in China by 2030, with hardware cost reductions significantly lowering ride-hailing and freight costs, thus transforming mobility into a software-defined, AI-driven platform.
- Investment Opportunities: Bank of America has highlighted 15 publicly traded companies exposed to Physical AI, including Nvidia, Tesla, and Qualcomm, which are leading in chips, robotics, mobility, and sensing, expected to spearhead this transformative wave.
See More
US Drone Companies Pitch Technology at Singapore Airshow Amid Regional Security Concerns
- Market Expansion Strategy: Several U.S. drone companies showcased their technology at the Singapore Airshow, aiming to move beyond Pentagon contracts to address heightened regional security concerns due to China's military expansion, indicating a strong focus on the Asia-Pacific market.
- Investment Driven by Combat Experience: The combat experience in Ukraine has spurred increased investment in U.S. drone and military AI firms, with companies like Anduril Industries and Shield AI gaining attention at the airshow, highlighting the potential of unmanned systems for future conflicts.
- Technical Collaboration Opportunities: Shield AI announced it will provide its Hivemind autonomy software to Singapore's ST Engineering, leveraging hundreds of operational hours logged by its V-BAT reconnaissance drone in Ukraine, demonstrating the reliability of its technology in combat scenarios.
- Regional Production Plans: Neros Technologies plans to establish factories across Asia to produce large numbers of expendable attack drones, reflecting the accelerating demand for unmanned systems, particularly as regional allies increase investments in defense amid uncertainties regarding China's intentions.
See More
Aerovironment Stock Volatility Amid Military Budget Proposals
- Stock Volatility: Aerovironment's stock surged 8% in early January due to President Trump's proposal to increase the 2027 military budget from $1 trillion to $1.5 trillion, but it later declined after a U.S. government stop work order on BADGER antenna systems, finishing the month up 15%.
- Revenue Growth: The company reported a 21% organic revenue growth to $227.4 million in its latest quarter, with total revenue of $472.5 million post-BlueHalo acquisition, showcasing strong performance and profitability in the drone market.
- Order Outlook: Aerovironment's total bookings reached $1.4 billion, indicating significant future growth potential, particularly as it consolidates its leadership in military unmanned aerial systems.
- Market Potential: With a current market cap of $14 billion, Aerovironment stands to achieve substantial stock price appreciation if it effectively executes its growth strategy amid advancing drone technology.
See More
Aerovironment Stock Volatility Amid Military Budget Proposal
- Military Budget Proposal Impact: President Trump's proposal to increase the 2027 military budget from $1 trillion to $1.5 trillion directly boosted Aerovironment's stock by 8% in early January, highlighting the company's sensitivity as a defense stock.
- Stock Volatility Overview: Despite a continuous rise in stock price during the first seven trading days of January, peaking in mid-January, the stock faced a decline due to a stop-work order from the U.S. government on BADGER phased array antenna systems, reflecting the market's high sensitivity to policy changes.
- Strong Financial Performance: Aerovironment reported a 21% organic revenue growth to $227.4 million in its latest quarter, with total revenue including the BlueHalo acquisition reaching $472.5 million, showcasing robust growth potential in the drone sector.
- Future Growth Outlook: The company recorded $1.4 billion in bookings, indicating a positive growth outlook, and with a current market cap of $14 billion, the stock has significant upside potential if it can effectively execute its growth strategy, consolidating its leadership in the drone market.
See More
