What Happened?
Shares of aerospace and defense company AeroVironment (NASDAQ: AVAV) jumped 3.1% in the afternoon session after the company announced it was awarded a new firm-fixed-price contract option by the U.S. Space Force to deliver two advanced antenna systems.
The deal covered the supply of two BADGER phased array antenna systems to support the Satellite Communication Augmentation Resource (SCAR) program. This program aimed to rapidly enhance satellite control capacity for the nation's Satellite Control Network.
This award marked the first option exercised under the SCAR agreement. AeroVironment noted that most key development milestones were already completed and that it had accelerated production and strengthened its supply chain to meet demand. The company planned to deliver the first BADGER unit to the Space Force in the coming months, with more units nearing completion for delivery in early 2026 to support a full-scale overseas deployment.
The shares closed the day at $288.14, up 3.5% from previous close.
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What Is The Market Telling Us
AeroVironment’s shares are very volatile and have had 23 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock gained 3.8% on the news that the company announced a strategic partnership to support Taiwan's defense needs and received a bullish initiation of coverage from a Wall Street analyst.
AeroVironment signed a Memorandum of Understanding (MOU) with the National Chung-Shan Institute of Science and Technology, a key research institution under Taiwan's Ministry of National Defense. The collaboration centered on autonomous systems, initially featuring the company's JUMP® 20 and JUMP® 20-X vertical takeoff and landing (VTOL) fixed-wing platforms. This deal arrived on the heels of a major Taiwanese government plan to purchase up to 100,000 drones for its defense. Bolstering investor optimism, B of A Securities initiated coverage on the company with a "Buy" rating and set a price target of $300.
AeroVironment is up 83.9% since the beginning of the year, and at $287.70 per share, has set a new 52-week high. Investors who bought $1,000 worth of AeroVironment’s shares 5 years ago would now be looking at an investment worth $4,558.
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