Drone firm AeroVironment's stock rebounds after huge reversal on Monday

Unusual Machines

03/03/2026 16:20

** AeroVironment's AVAV.O shares up 9.5% at $228.14 on Tues after volatile swing into the red in prior session

** AVAV shares finished down >17% at $208.32 on Mon after soaring as high as $303 in wake of sharp downgrade by Raymond James to 'underperform', with the analysts pointing to potential loss of exclusivity on co's $1.4 bln contract with U.S. Space Force's Satellite Communications Augmentation Resource (SCAR) program

** Early Tues, the Arlington, Virginia-based firm issued a statement saying it remains in active negotiations with U.S. Space Force regarding the contract to deliver ground stations to support SCAR

** Co also announced it's partnering with Albuquerque, New Mexico to expand its defense manufacturing operations

** In Jan, the U.S. government issued a stop work order on SCAR contract with AVAV, allowing both parties to negotiate an amended agreement

** Shares of Red Cat Holding RCAT.O up >4% on Tues, though stocks of other drone-related firms are down: Kratos Defense & Security Solutions KTOS.O off 2%, Unusual Machines UMAC.A ~3% and nLIGHT LASR.O ~6%

** This as Iran war enters fourth day, sending global equity markets tumbling .N

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))