AeroVironment Stock Extends Rebound After Earnings Beat

The equity has broken above its 50-day moving average

Deputy Editor
Sep 5, 2019 at 9:49 AM
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The shares of drone maker AeroVironment, Inc. (NASDAQ:AVAV) are booming this morning, after the company announced an adjusted profit of 74 cents for its fiscal first quarter, compared to the 36 cents per share expected by analysts. The firm also reported $86.9 million in revenue, which topped estimates. In response, AVAV is up 6.8% at $56.36.

Today's upside puts the equity on track to take out recent pressure at its 50-day moving average, which it hasn't closed above since late May. In fact, AVAV ran out of steam just below this trendline yesterday, as it extended a rally off its annual low of $48.61, touched on Aug. 26. The security is now up almost 16% off this bottom. 

Analysts have remained on the sidelines during the security's latest rebound. Right now, only one member of the brokerage bunch considers the stock a "strong buy" while six say "hold." Meanwhile, the equity's consensus 12-month price target of $66 is at a roughly 25% premium to last night's close. 

While short interest is beginning to unwind -- down 6.3% in the last two reporting periods -- the 2.46 million shares sold short still represent a solid 11.3% of the stock's available float. Plus, it would take almost 12 days to buy back all these bearish bets, at the average pace of trading. 

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