TLDR
- AeroVironment stock jumped 16% on January 5, 2026, after landing an $874.26M contract with the U.S. Army for drones and counter-drone systems
- The company secured an additional $13.2M contract to deliver P550 uncrewed aircraft systems for long-range reconnaissance
- Second quarter revenue hit a record $472.5M, up 151% year-over-year, boosted by the BlueHalo acquisition
- Trading volume surged 43% above average with heavy call options activity totaling $2.57M
- Institutional ownership stands at 86.38% with the stock breaking above $300 resistance
Defense Contracts Send Shares Soaring 16% Past $300
AeroVironment stock rocketed 16% on January 5, 2026, pushing past the $300 mark as investors piled in after the company announced major defense contracts. Trading volume jumped 43% above normal levels as both institutions and retail traders chased the move.
The rally came on the heels of an $874.26M contract win with the U.S. Army. The five-year deal covers unmanned aerial vehicles and counter-drone systems. This includes delivery of JUMP 20, P550, and Puma drones along with related technology.
A separate $13.2M contract added fuel to the fire. This deal involves supplying P550 uncrewed aircraft systems for the Army’s long-range reconnaissance program. These systems pack AI-powered surveillance capabilities.
The stock opened strong and kept climbing. Shares hit an intraday high of $302.49 before settling at $291.59. That’s a healthy gain from where things stood just weeks ago.
Money flooded into call options. Traders placed 49 extraordinary options bets, with calls totaling $2.57M compared to just $194,780 in puts. Someone clearly thinks this stock has room to run.
AeroVironment, Inc., AVAV
Financial Performance Backs The Move
The second quarter numbers tell a compelling story. Revenue reached $472.5M, crushing the prior year by 151%. The BlueHalo acquisition deserves credit for much of that jump.
The company posted a net loss of $17.1M. But that’s mostly accounting noise from amortization and purchase expenses. Adjusted EBITDA came in at $45M, showing the business generates cash.
New bookings hit $1.4B with a book-to-bill ratio of 2.9. That means orders are coming in nearly three times faster than revenue goes out. Future quarters look promising.
Gross margin sits at 26.5%. The debt-to-equity ratio of 0.19 shows management keeps leverage low. A current ratio of 5.1 means short-term bills aren’t a problem.
Contract Details Matter
The $874M Army contract spans multiple drone platforms. JUMP 20 offers vertical takeoff capabilities. P550 brings long-range intelligence gathering. Puma handles tactical reconnaissance.
These aren’t simple flying cameras. AI integration and autonomous systems separate these drones from older tech. The military wants smart systems that can make decisions in real time.
Counter-drone capabilities sweetens the deal. AeroVironment delivered laser weapon systems to the Army. These systems knock enemy drones out of the sky. It’s defense and offense in one package.
Institutional investors own 86.38% of shares. That’s heavy ownership from the smart money. When institutions hold that much stock, retail traders take notice.
The technical picture shifted hard. The stock broke through recent consolidation and cleared psychological resistance at $300. Volume confirmed the move with 2,340,521 shares changing hands.
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