AeroVironment CEO Wahid Nawabi sold 5,246 shares in a routine tax-withholding transaction tied to RSU vesting, leaving him with 162,200 shares. The stock is down 50% but sales growth and backlog remain strong.
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Wahid Nawabi, the chairman, president and CEO of AeroVironment (NASDAQ:AVAV), sold 5,246 shares on July 10 to cover tax withholding from the vesting of restricted stock awards, according to a Form 4 filing with the SEC. The transaction was done at a weighted average price of $144.58. Nawabi still holds about 162,200 shares, or 0.32% of the company's outstanding stock.
Such sales are routine. The vesting event itself is a standard part of an equity incentive plan, and the sale is mandatory to meet tax obligations, not a voluntary reduction in the CEO's position. The filing does not indicate any change in Nawabi's outlook on the company.
AeroVironment's stock has fallen roughly 50% over the past year. The company's price-to-sales ratio of 3.5 is near its 10-year lows. That does not reflect the underlying growth in the business. The defense contractor reported a 40% increase in sales in its latest quarter, and its funded backlog grew 82% in the 2025 fiscal year. Management expects revenue to grow 15% to 20% annually through 2030.
The company has been broadening its product line beyond drones and unmanned aircraft. Its acquisition of Blue Halo added space operations and a software foundation layer, positioning AeroVironment as a more integrated defense platform. The shift is meant to capture more of the government's spending on autonomous systems and advanced military technology.
AeroVironment has a market capitalization of about $7.3 billion and trailing 12-month revenue of roughly $2 billion. The company's business model relies on product sales and long-term support contracts with U.S. and allied government agencies. The high backlog suggests the pipeline of funded orders remains robust, even as the stock has struggled.
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