From 24/7 Wall St. · David Moadel · · 1m 20s
AeroVironment Stock Drops 43% This Year
AeroVironment shares fell 43% this year despite clean books at peers, raising questions about sector-wide devaluation.
In brief
AeroVironment shares fell 43% this year despite clean books at peers, raising questions about sector-wide devaluation. AeroVironment stock dropped 43% this year as drone sector faces devaluation, with accounting error and pending lawsuit complicating recovery. Originally reported by 24/7 Wall St..
AeroVironment's Accounting Restatement
AeroVironment's accounting restatement looks like an easy explanation for a brutal year, until you notice that peers with clean books fell just as hard.
Stock Performance Comparison
AeroVironment stock is at $138.45, down 43% so far this year. Kratos Defense stock is at $41.81, down 45% year to date. Red Cat shares are at $6.11, down 23% so far this year.
Market Context
The Defiance Drone and Modern Warfare ETF is at $24.50, up 0.9% this year, while the SPDR S&P 500 ETF Trust is at $777.50, up 14% over the same stretch.
Accounting Error Impact
In late June, AeroVironment disclosed an $89 million goodwill calculation error tied to its space unit, forcing a revision of previously reported financial results.
Pending Lawsuit
A securities class action followed the accounting error, raising questions about AeroVironment’s financial controls during a stretch of acquisition-driven growth.
What to Watch Next
Whether the class action settles, rebound in Kratos and Red Cat shares, or fresh contract awards will determine AeroVironment’s stock recovery.
The big picture
AeroVironment stock dropped 43% this year as drone sector faces devaluation, with accounting error and pending lawsuit complicating recovery.
