AeroVironment Inc (NASDAQ:AVAV), a defense technology company whose stock has surged over 61% year-to-date and maintains a strong financial health rating according to InvestingPro, reported that Senior Vice President and Chief Financial Officer Kevin McDonnell recently sold shares valued at approximately $78,697. The transaction involved the sale of 396 shares of common stock at a weighted average price of $198.73 per share. This sale was executed on December 2, 2024, under a Rule 10b5-1 trading plan that McDonnell adopted on March 19, 2024. Following this transaction, McDonnell retains ownership of 16,472 shares in the company. The sale comes as AeroVironment maintains a robust current ratio of 4.26 and minimal debt-to-equity of 0.06, with the company set to report its next earnings on December 4, 2024.
In other recent news, AeroVironment has made significant strides in its operations. The company is set to acquire defense technology provider BlueHalo in an all-stock transaction valued at around $4.1 billion. This strategic move is expected to generate over $1.7 billion in revenue for the combined entity. AeroVironment's first quarter of fiscal year 2025 saw a 24% revenue increase, reaching a record $189.5 million, largely driven by its Loitering Munition Systems segment.
Furthermore, Jefferies upgraded AeroVironment's stock rating from Hold to Buy, although the price target was revised to $230 from $240. This decision reflects the positive expectations following AeroVironment's acquisition of BlueHalo. The company's post-acquisition earnings before interest, taxes, depreciation, and amortization (EBITDA) are projected to more than double, attributed to a high-growth commercial products portfolio.
In addition, AeroVironment secured a $200 million revolving credit facility, amending its previous agreement with Bank of America (NYSE:BAC). The U.S. Army awarded the company a $54.9 million contract for the production of Switchblade loitering munition systems. Lastly, significant changes were made to AeroVironment's corporate governance structure following a stockholder vote. These are the recent developments for AeroVironment.
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