Why AeroVironment Stock Raced 4% Higher Today
's (NASDAQ: AVAV) latest news item fueled something of a rally in the stock on Wednesday. The drone manufacturer essentially got the shareholder green light to proceed with an acquisition, and the market greeted this by pushing the stock more than 4% higher on the day. This was more than good enough to top the bellwether S 500 index's 0.7% rise.
Just after market close Tuesday, AeroVironment announced that a stockholder vote approved a fresh issue of the company's common stock to help fund its acquisition of privately held peer BlueHalo. According to management, over 99% of the votes were in favor of the measure.
Last November, AeroVironment agreed to purchase BlueHalo in an all-stock transaction valued at around $4.1 billion. The latter is in the portfolio of private equity firm Arlington Capital Partners, and concentrates on next-generation defense technology such as laser weapon systems.
Source Fool.com
Aerovironment Stock
The stock is one of the favorites of our community with 24 Buy predictions and 1 Sell predictions.
On the other hand, the target price of 207 € is below the current price of 209.1 € for Aerovironment, so the potential is actually -1.0%.
