New York, March 2, 2026, 14:32 EST — Regular session
- AeroVironment shares tumbled roughly 19% in afternoon trading, pressured by a downgrade from Raymond James.
- Attention now shifts to uncertainty surrounding the Space Force’s SCAR satellite-communications program.
- March 10 earnings are next on traders’ radar as they seek details on contracts and backlog.
AeroVironment, Inc. got hit hard Monday, tumbling almost 19% after Raymond James lowered its rating. Shares were off $47.75 at $204.50, the drop playing out on strong midday volume.
The broker cut AeroVironment’s rating to Underperform from Strong Buy, citing questions over the U.S. Space Force’s SCAR program, which it pegs at roughly $1.4 billion. Analysts warned in the note that a re-bid could squeeze the company’s backlog — work already on the books but not yet finished — and cloud the outlook for future revenue. Investing.com
AeroVironment bucked the trend, finishing lower even as defense names attracted buyers on worries about the Middle East. The S&P 500 barely moved. “At times when there is nervousness, people will go to … defense stocks,” said Joe Saluzzi, co-head of equity trading at Themis Trading. Reuters
SCAR—Satellite Communications Augmentation Resource—aims to boost the Space Force’s Satellite Control Network, tapping into portable phased-array antennas that can be electronically steered. The Space Rapid Capabilities Office handed BlueHalo the job back in 2022, opting for an “Other Transaction Agreement,” a contract type frequently used to fast-track prototypes. U.S. Space Force
AeroVironment finished buying BlueHalo in May 2025, pushing the company further into space, cyber, and directed-energy tech, in addition to its established drone and loitering munition business. The acquisition also tied AeroVironment more closely to schedules and requirements for programs such as SCAR. AeroVironment, Inc.
AeroVironment disclosed in a January filing that its SCAR-related BADGER phased-array antenna project got hit with a stop-work order from the U.S. government, halting activity so both sides could hash out a new agreement—this time, likely a firm-fixed price deal, putting the risk of overruns on the contractor. Still, AeroVironment said it expected to deliver “capabilities and products” tied to the SCAR program.
BTIG didn’t budge Monday, sticking with its Buy call and $415 target. The firm described the sharp drop as “overdone”—the contract in question was seen accounting for roughly 6% of yearly sales. BTIG plans to hold off until the company’s report next week for more information. Investing.com
There’s a risk a re-bid ends up as a reset—think more vendors in the mix, prices getting pushed down, deliveries taking longer, maybe even the program itself shifting to other systems. Whenever there’s fresh uncertainty around a contract, sentiment can snap lower quickly, especially with shares trading on every new government program headline.
The calendar circles March 10 — AeroVironment dropping its fiscal third-quarter numbers after the bell, with a call lined up for 4:30 p.m. Eastern. SCAR details are front of mind for traders, who want clarity on impact to backlog and any tweaks to guidance. avinc.com
