Exploring AeroVironment, Inc. (AVAV) Investor Profile: Who’s Buying and Why?

You've watched AeroVironment, Inc. (AVAV) deliver a stunning run, with the stock price hitting around $291.21 per share as of November 2025, reflecting a powerful one-year return near 79%; but who, exactly, is driving that momentum, and can it last?

As a defense technology leader, AeroVironment's appeal to the institutional heavyweights is clear: they closed out fiscal year 2025 with record revenue of $820.6 million and an enormous funded backlog of $726 million, an 82% year-over-year jump, which defintely signals long-term contract visibility. Institutional investors, the big money managers, now own a commanding stake, with ownership figures sitting near 86.38% of the company's shares. This is not a retail-driven story.

When you see BlackRock, Inc. holding over 4.8 million shares and The Vanguard Group, Inc. holding over 3.5 million shares, you have to ask: what is their core thesis, and what do they know about the Loitering Munitions Systems (LMS) and Uncrewed Systems (UxS) segments that drove a 40% increase in Q4 revenue alone? That kind of institutional conviction, backed by $1.2 billion in record bookings, maps a very specific risk-reward profile you need to understand right now.

Who Invests in AeroVironment, Inc. (AVAV) and Why?

You're looking at AeroVironment, Inc. (AVAV) and trying to figure out who's driving the stock's momentum, and honestly, the answer is simple: it's the big money. The vast majority of the shares-about 86.38%-are held by institutional investors and hedge funds, which makes the stock price highly sensitive to their collective trading actions.

This heavy institutional presence, which includes major players like BlackRock, Inc. and The Vanguard Group, Inc., tells you two things: the company has significant credibility in the investment community, but it also means volatility can spike if a few large funds decide to sell at once. Retail investors, or the general public, hold a smaller but still notable stake, around 12%.

Key Investor Types: The Institutional Dominance

When you see a company like AeroVironment, Inc. with such a high percentage of institutional ownership, you know the narrative is being set by professional money managers. These aren't just hedge funds; they are also massive index funds and mutual funds. For example, as of September 30, 2025, BlackRock, Inc. held over 4.8 million shares, and The Vanguard Group, Inc. held over 3.5 million shares.

Here's the quick math on the major groups:

• Institutional Investors: The largest block, looking for long-term inclusion in defense and technology indices.
• Hedge Funds: The active traders, using the stock's growth story and market sensitivity for alpha generation (outperforming the market).
• Retail Investors: Individual accounts, often attracted by the company's high-profile, real-world defense technology like the Switchblade loitering munitions.

The institutional concentration means their due diligence (DD) is what really moves the needle. You can read more about the company's foundation and business model here: AeroVironment, Inc. (AVAV): History, Ownership, Mission, How It Works & Makes Money.

Investment Motivations: Betting on Explosive Growth

Investors are buying AeroVironment, Inc. for one core reason: the massive growth trajectory driven by global defense spending and strategic acquisitions. This is a pure growth play, not a dividend stock.

The fiscal year 2025 results, which ended April 30, 2025, were a clear signal. The company reported total revenue of $820.6 million and a net income of $43.6 million. But the real kicker was the future outlook. Total bookings hit a record $1.2 billion, and the funded backlog swelled to $726 million, an 82% jump year-over-year. That kind of visibility into future sales is gold.

Plus, the acquisition of BlueHalo, which closed in May 2025, is a game-changer. It's expected to nearly triple revenue in the next fiscal year, with guidance projecting 2026 revenue between $1.9 billion and $2.0 billion. That's a defintely compelling growth story.

Investment Strategies: Growth and Momentum

The strategies employed by these major investors are overwhelmingly focused on growth and momentum. Value investors typically steer clear of stocks with a high price-to-earnings (P/E) ratio, but for AeroVironment, Inc., the focus is on the future earnings growth rate (PEG ratio), which is still attractive despite the high valuation.

Growth investors are drawn to the projected earnings per share (EPS) growth of 43.9% for the year, significantly outpacing the industry average. They are essentially paying a premium for a company they expect to grow its sales by 26.4% this year. This is a classic growth-at-a-reasonable-price (GARP) approach for many, where the future growth justifies the current price tag.

Other investors are simply riding the momentum. The stock's price action has been explosive, with a surge of over 40% in a single month earlier in 2025. This short-term trading is common in high-demand defense tech stocks, but it also increases the risk of a sharp correction. The consensus among Wall Street analysts is a 'Moderate Buy,' with an average price target of around $356.07, suggesting a forecasted upside of over 25% from recent prices.

Institutional Ownership and Major Shareholders of AeroVironment, Inc. (AVAV)

You want to know who is betting big on AeroVironment, Inc. (AVAV) and why, which is the right question to ask before making a move. The direct takeaway is that institutional investors-the big money like mutual funds and asset managers-own the vast majority of the company, and their recent activity shows a strategic accumulation, not a wholesale exit.

As of the most recent filings (September 30, 2025), institutions hold roughly 63.95% of the outstanding shares, or about 31.9 million shares, with the total value of these holdings sitting near $9.3 billion. This level of concentration means the stock's price movements are defintely sensitive to their collective trading actions.

Top Institutional Investors and Their Stakes

When you look at the shareholder register, the ownership structure of AeroVironment, Inc. is highly concentrated at the top. The single largest shareholder is Arlington Management Employees, LLC, which holds a significant stake of 24.21% as of August 2025. This is a massive block, but focusing on the traditional asset managers, the list is a who's who of global finance.

Here's a quick look at the top institutional asset managers and their holdings based on September 30, 2025, data:

• BlackRock, Inc.: Holds 4,811,093 shares, valued at over $1.4 billion.
• The Vanguard Group, Inc.: Owns 3,530,073 shares, valued at approximately $1.03 billion.
• Baillie Gifford & Co.: Holds 1,783,679 shares, with a value of about $519.4 million.
• State Street Corp: Manages 1,762,950 shares, valued at roughly $513.4 million.

These firms aren't just passive holders; they represent the core belief in the long-term trajectory of the company's defense and drone technology business, which you can read more about here: AeroVironment, Inc. (AVAV): History, Ownership, Mission, How It Works & Makes Money.

Recent Shifts: Who's Buying and Who's Selling?

Institutional ownership is never static, and the recent quarter ending September 30, 2025, showed a clear pattern of targeted accumulation. Overall, 363 institutions increased their positions in AeroVironment, Inc., while 197 decreased theirs. That's a strong net positive in terms of conviction.

Here's the quick math on some key movements:

The most eye-catching move was Invesco Ltd., which more than doubled its position, signaling a massive conviction in the near-term outlook. Even though some, like Baillie Gifford & Co., trimmed their stake, the overall trend points toward institutional investors increasing their exposure, especially considering the 9.086% stake increase by BlackRock, Inc. This tells you that for every institution taking some profit, there are two more stepping in with new capital.

The Impact of Institutional Investors on Strategy and Stock Price

The sheer volume of institutional ownership-with more than half of the company's shares held by just seven investors-means these large players are the primary drivers of stock volatility. When they buy, the price can climb fast; when they sell, it can drop just as quickly. This concentration creates a stock price highly sensitive to their collective trading actions.

Their role isn't just about trading, though; it's strategic. They hold the voting power to influence board decisions, executive compensation, and major corporate actions like mergers or acquisitions. For a defense technology company like AeroVironment, Inc., which operates in a capital-intensive sector, this institutional backing provides a critical layer of stability and credibility. The stock's one-year return to shareholders was about 79% leading up to October 2025, with a recent 19% gain in a single week, which is a concrete example of the positive impact of this strong institutional confidence. This kind of performance validates their investment thesis and gives management a clear mandate to execute their long-term strategy, which is currently focused on scaling up their unmanned aerial systems (UAS) and tactical missile systems to meet global demand.

Next Step: Portfolio Management should review the recent 79% one-year return against the sector average to determine if AeroVironment, Inc. is now over-allocated in your risk model by Friday.

Key Investors and Their Impact on AeroVironment, Inc. (AVAV)

You need to know who is betting big on a company like AeroVironment, Inc. (AVAV) because their buying and selling dictates market liquidity and, frankly, stock price volatility. The direct takeaway here is that AeroVironment, Inc. is overwhelmingly an institutionally-owned stock, with a significant private equity presence that gives them a powerful voice in strategic direction.

As of late 2025, institutional investors-the big money managers like BlackRock, Inc. and The Vanguard Group, Inc.-own the lion's share of the company, with institutional ownership figures consistently in the range of 57% to over 83% of the total shares outstanding. This is a critical mass; it means their collective trading actions can make or break a stock's near-term performance. In fact, the total institutional value (long) was approximately $11.35 billion as of November 14, 2025.

The Heavy Hitters: Who Holds the Power

When you look at the shareholder register, the names are exactly what you'd expect for a defense technology leader. These are not just passive index funds; they are massive asset managers and, crucially, a major private equity-linked entity. The top seven shareholders alone account for over half of the company's share register, a concentrated ownership structure that magnifies their influence.

The single largest shareholder is Arlington Management Employees, LLC, which held approximately 12,035,890 shares (a 24.21% stake) as of August 6, 2025. This private equity-related holding is a massive block of stock and signals a deeply vested interest in the company's long-term strategy and operational efficiency, which often means pushing for growth and profitability targets.

Following that, you have the giants of the asset management world. Here's a quick snapshot of the top institutional holders and their positions as of the third quarter of fiscal year 2025:

• BlackRock, Inc.: Held approximately 4,807,325 shares, representing a 9.67% stake, valued at roughly $1.4 billion.
• The Vanguard Group, Inc.: Held approximately 3,530,073 shares, representing a 7.10% stake, valued at roughly $1.03 billion.
• Baillie Gifford & Co: A notable active manager, holding a significant stake.

When you see this kind of concentration, you know the board room discussions are defintely influenced by these players. They have the capital and the proxy votes to strongly influence major decisions, from mergers and acquisitions to capital allocation strategies.

Investor Influence: Beyond the Share Count

The sheer size of the institutional stake-over half the company-means AeroVironment, Inc.'s stock price is highly sensitive to their collective trading actions. This is a double-edged sword: a wave of institutional buying can propel the stock, but a coordinated sell-off can trigger a sharp decline. That's just how the market works with high institutional float.

The presence of Arlington Management Employees, LLC (a private equity-linked entity) with its 24.21% stake, suggests a focus on value creation through strategic change. Private equity investors often pressure management to streamline operations, divest non-core assets, or pursue transformative acquisitions. They are not just passive holders; they are active owners who want a clear path to a profitable exit, which, for you, means a focus on maximizing shareholder return. If you want to dive deeper into the company's fundamentals, you can check out Breaking Down AeroVironment, Inc. (AVAV) Financial Health: Key Insights for Investors.

Recent Moves: Tracking the Smart Money

Near-term trading activity gives us a better sense of sentiment. The third quarter of 2025 saw some notable, if mixed, moves among the large holders, which is typical as fund managers rebalance their portfolios. Here's the quick math on two key institutional actions:

Plus, smaller funds are also initiating positions, like Semanteon Capital Management LP, which purchased 3,067 shares valued at approximately $874,000 in the second quarter of 2025. This shows broader interest in the aerospace and defense sector's tailwinds. What this estimate hides, however, is the recent insider selling: the CFO sold 998 shares in October 2025 for over $398,000. While a small percentage of total shares, insider selling is always a data point you should watch closely.

Market Impact and Investor Sentiment

You're looking at AeroVironment, Inc. (AVAV) and wondering if the smart money is still buying, and the short answer is yes, with a caveat. The current investor sentiment from major shareholders is overwhelmingly positive, driven by the company's dominance in the Uncrewed Systems (UxS) and Loitering Munition Systems (LMS) defense sectors. This is not a speculative bet; it's a conviction play on global defense spending.

Institutional investors, the big players like BlackRock, Inc. and The Vanguard Group, Inc., collectively own a substantial portion of the company, ranging from 57% to over 86% of the stock, depending on the reporting date. This high institutional ownership means the stock price is defintely sensitive to their trading actions. The top shareholders are not just index funds, but also include Arlington Management Employees, LLC, which holds the largest stake at around 24% of common stock.

Here's a quick look at the top institutional holders as of the most recent filings in Q3 2025:

What this table hides is the private equity influence from the Arlington Capital Partners entities, which suggests a long-term, strategic view on the company's growth trajectory and potential for further consolidation in the defense tech space. You can dive deeper into the fundamentals in Breaking Down AeroVironment, Inc. (AVAV) Financial Health: Key Insights for Investors.

Recent Market Reactions to Ownership Shifts

The stock market has responded to significant institutional accumulation with sharp, positive movements. For instance, in Q2 2025, we saw 294 institutional investors add to their positions, versus 217 decreasing. This net accumulation is a clear signal.

A major move was Invesco Ltd. adding 669,420 shares, a massive 109.92% increase in its position as of September 30, 2025. Similarly, The Vanguard Group, Inc. added 433,830 shares in Q2 2025, valued at an estimated $123,619,858. This buying pressure helps explain why the stock has shown resilience.

A concrete example of market reaction was on October 1, 2025, when the stock trended up by 7.98% in a single day, fueled by contract wins and tech upgrades like the Laser Target Designator for their Puma drones. That's a fast move. Still, you need to watch insider activity; in October 2025, an insider sold 1,717 shares for $654,177.00, which is a small but notable signal of profit-taking at higher valuations.

Analyst Perspectives and Key Investor Impact

Wall Street analysts are echoing the institutional bullishness. The consensus rating for AeroVironment, Inc. is 'Strong Buy' or 'Moderate Buy' from a pool of around 12 to 20 analysts. This is a powerful vote of confidence in the company's future revenue streams from defense contracts.

The average 12-month price target is aggressive, sitting in the range of $349.23 to $392.33 as of late 2025. With the stock trading around $291.21 on November 14, 2025, that implies a significant upside potential of over 30%. The high target is even higher, with Canaccord Genuity setting a $430.00 target on October 7, 2025.

• Consensus Price Target: $349.23 to $392.33.
• Projected FY2025 Revenue: $2.01 billion to $2.04 billion.
• Projected FY2025 EPS: $3.63 to $3.73.

Analysts are betting on the company's Autonomous Systems segment, particularly the Loitering Munition Systems (LMS), which is seeing massive demand. The predicted revenue for the current fiscal year (FY2025) is a massive jump, with estimates around $2.04 billion, representing a 148.47% increase from the prior year's $820.63 million. This is why the big funds are buying; they see a clear path to revenue and earnings growth. The institutional footprint, particularly from firms like BlackRock, Inc., validates the company's strategic direction and its role as a key defense technology supplier.