Why AeroVironment Stock Dropped 5% Today

AeroVironment (NASDAQ: AVAV) stock fell 5.1% through 10:10 a.m. ET Tuesday after investment bank Jefferies lowered its rating on the manufacturer of military drone aircraft.Reports indicate that Jefferies analyst Greg Konrad downgraded AeroVironment stock from buy to hold primarily on valuation concerns, citing the stock's 87% increase in share price so far this year. Konrad sees "improving fundamentals" driving AeroVironment's gains -- and they are. Sales grew 33% in fiscal 2024, and were up another 25% in the first quarter of this fiscal year. Gross profit margins are entering their third straight year of expansion, and operating and net margins are firmly positive. Konrad also credits a "post-Trump bump" for boosting AV shares, on anticipation of greater military spending under the new administration.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool