AeroVironment (AVAV, Financial), a U.S. defense contractor and drone manufacturer, saw its stock price drop over 7% after announcing plans to raise $1.35 billion. The company intends to issue $750 million in common stock and $600 million in convertible senior notes due in 2030 to repay debt. The remaining funds will be used to expand production capacity and for general corporate purposes.
Despite this recent decline, AeroVironment's stock has surged 85% this year, pushing its market capitalization to approximately $13 billion. The Virginia-based company experienced significant stock gains last week following strong fourth-quarter results. Financial analyst Jim Cramer further boosted investor interest by likening AeroVironment to "the next Palantir in hardware."
