AeroVironment, Inc. (NASDAQ:AVAV) Overbought but Is That a Sell Indicator?

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AeroVironment, Inc. (NASDAQ:AVAV) is at an overbought level with an RSI(14) at 81.98.

The Relative Strength Index (RSI) is a very common technical indicator used to evaluate strengthening and weakening momentum in stock price. RSI levels above 70 are considered overbought with RSI’s under 30 indicating oversold. Overbought is a technical condition that occurs when price momentum is considered too high and the probability of decline is higher.

Volatility

(NASDAQ:AVAV) currently has a beta of 1.27 meaning it is higher in volatility than the market as a whole that has a beta of 1. Stocks with a beta lower than the market are considered to be less risky while those with a higher beta may be more risky than the market.

The stock’s Average True Range (ATR) is 1.44. The ATR is an indicator of volatility. It doesn’t indicate direction, just proclivity for motion.

Shares last traded at $52.10 a great deal higher than the 50 day moving average which is $42.48 and well above the 200 day moving average of $34.17. The 50 day moving average was up $9.62 whereas the 200 day moving average was up $17.93 or +52.46%.

Short Interest

Investors are more bullish on shares of AeroVironment, Inc. recently considering the downtick in short interest. The firm experienced a fall in short interest from August 15, 2017 to August 31, 2017 of -4.16%. Short shares fell 68,762 over that timeframe. With short interest at 1,586,074 and short average daily volume at 472,675, the short-interest ratio is 3.0 and the percentage of shorted shares is 0.07% as of August 31.

Insider Activity

There has been some selling insider activity on AeroVironment, Inc. (NASDAQ:AVAV) recently. Timothy E. Conver, Director disclosed the sale of 7,600 shares of AVAV stock. The shares sold for $49.14. Conver now owns $96,527,422 of the stock per the Form 4 SEC filing. Director Timothy E. Conver let go of 7,600 shares at a price of $38.49 on Wed the 9th. That brings Conver’s holdings to $76,192,302 per an SEC filing yesterday.

Director Timothy E. Conver sold 11,362 shares at an average price of $39.19 on July 12th. Conver now owns $2,278,428 of stock as recorded in a recent Form 4 SEC filing.

AeroVironment, Inc. currently has a P/E ratio of 61.37 and market cap is 1.22B. In the last earnings report the EPS was $0.85 and is estimated to be $0.61 for the current year with 23,336,000 shares outstanding. Next quarter’s EPS is forecasted to be $0.10 and the next full year EPS is projected to be $0.78.

Company Information

AeroVironment, Inc., launched on June 27, 2006, designs, develops, produces, supports and operates a portfolio of products and services for government agencies, businesses and consumers. The Company operates through two segments: Unmanned Aircraft Systems (UAS), which focuses primarily on the design, development, production, support and operation of UAS and tactical missile systems that provide situational awareness, multi-band communications, force protection and other mission effects, and Efficient Energy Systems (EES), which focuses primarily on the design, development, production, marketing, support and operation of electric energy systems. The Company supplies UAS, tactical missile systems and related services primarily to organizations within the United States Department of Defense (DoD), including the United States Army, Marine Corps, Special Operations Command and Air Force. The Company also supplies charging systems and services for electric vehicles (EVs), and power cycling and test systems to commercial, consumer and government customers. The Business’s core technological capabilities include lightweight aerostructures; power electronics; electric propulsion systems; electric power generation, conversion and storage systems; high-density energy packaging; miniaturization; digital data links (DDL); aircraft sensors; controls integration, and systems integration and engineering optimization, hybrid propulsion, vertical takeoff fixed wing flight and autonomy..