AeroVironment descends after $1.35 bln stock, convertible bond deals unveiled

Shares of military drone maker AeroVironment AVAV.O down 7.4% at $263.93 early Tues after co unveiled planned capital raise of $1.35 bln

AVAV shares on course for biggest one-day pct fall since early Dec

Late Mon, Arlington, Virginia-based firm announced public offerings of $750 mln in stock and $600 mln 5-yr convertible bonds

It plans to use net proceeds from the offerings to repay debt, remainder for general purposes, including to increase manufacturing capacity

JP Morgan and BofA leading the offerings

Even with decline on the session, AVAV shares have soared about 35% over the past week since co posted fiscal Q4 beat and forecasted FY26 rev of $1.9-$2 bln and adj EPS of $2.80-$3.00, inclusive of acquisition of space and defense engineering co BlueHalo

With ~45.7 mln shares outstanding, AVAV has $12 bln market cap

Including move on Tues, shares up 72% YTD and have more than doubled over the last three months

Avg rating among 8 analysts is "strong buy"; median PT of $225 up from $190 a month ago - LSEG data