Archer Aviation (NYSE:ACHR) Reaches New 12-Month Low - Here's Why

Key Points

• Archer Aviation shares hit a new 52-week low, falling to as low as $4.75 amid heavy trading volume. The stock was last down about 5.4% and well below its recent moving averages.
• Analysts remain mixed on the name, but the consensus is still Moderate Buy with a $11.83 target price. Recent target cuts from Canaccord and Needham reflect softer near-term expectations.
• The company continues to post losses and missed Q1 expectations, reporting EPS of -$0.28 on revenue of $1.6 million. Insider sales and muted earnings outlook have added to investor caution.

Archer Aviation Inc. (NYSE:ACHR - Get Free Report)'s stock price reached a new 52-week low during mid-day trading on Thursday . The stock traded as low as $4.75 and last traded at $4.7750, with a volume of 32362396 shares traded. The stock had previously closed at $5.05.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the stock. Canaccord Genuity Group cut their price objective on shares of Archer Aviation from $13.00 to $12.00 and set a "buy" rating on the stock in a research note on Tuesday, May 12th. Needham & Company LLC lowered their target price on shares of Archer Aviation from $10.00 to $9.00 and set a "buy" rating on the stock in a research note on Tuesday, March 3rd. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Archer Aviation in a research report on Monday, April 20th. Five analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $11.83.

Archer Aviation Stock Down 5.4%

The company has a debt-to-equity ratio of 0.06, a quick ratio of 18.06 and a current ratio of 18.06. The company has a market cap of $3.63 billion, a P/E ratio of -4.34 and a beta of 3.14. The stock has a 50 day moving average price of $5.97 and a 200 day moving average price of $6.76.

Archer Aviation (NYSE:ACHR - Get Free Report) last released its earnings results on Monday, May 11th. The company reported ($0.28) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.25) by ($0.03). The company had revenue of $1.60 million during the quarter, compared to analysts' expectations of $1.66 million. During the same quarter in the prior year, the firm posted ($0.17) earnings per share. Research analysts expect that Archer Aviation Inc. will post -1.47 earnings per share for the current fiscal year.

Insider Buying and Selling at Archer Aviation

In related news, CAO Harsh Rungta sold 12,414 shares of the business's stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $5.95, for a total value of $73,863.30. Following the sale, the chief accounting officer directly owned 87,210 shares in the company, valued at $518,899.50. The trade was a 12.46% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Eric Lentell sold 48,169 shares of the stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $5.95, for a total transaction of $286,605.55. Following the sale, the insider directly owned 141,084 shares of the company's stock, valued at approximately $839,449.80. This represents a 25.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 250,743 shares of company stock worth $1,497,672. 5.55% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Archer Aviation

A number of hedge funds have recently modified their holdings of the stock. Western Wealth Management LLC lifted its holdings in shares of Archer Aviation by 22.0% in the first quarter. Western Wealth Management LLC now owns 22,962 shares of the company's stock valued at $119,000 after purchasing an additional 4,144 shares in the last quarter. Parallel Advisors LLC grew its holdings in shares of Archer Aviation by 59.4% during the first quarter. Parallel Advisors LLC now owns 8,786 shares of the company's stock valued at $45,000 after buying an additional 3,275 shares in the last quarter. Segall Bryant & Hamill LLC acquired a new position in Archer Aviation during the first quarter valued at $168,000. Bank of America Corp DE raised its position in Archer Aviation by 33.2% during the first quarter. Bank of America Corp DE now owns 2,136,942 shares of the company's stock valued at $11,048,000 after buying an additional 532,762 shares during the period. Finally, Amundi lifted its stake in Archer Aviation by 134.9% in the 1st quarter. Amundi now owns 71,397 shares of the company's stock worth $369,000 after acquiring an additional 41,008 shares in the last quarter. 59.34% of the stock is currently owned by institutional investors and hedge funds.

About Archer Aviation

Archer Aviation, Inc NYSE: ACHR is a California-based aerospace company developing electric vertical takeoff and landing (eVTOL) aircraft designed to serve as sustainable urban air mobility solutions. Founded in 2018 by Adam Goldstein and Brett Adcock, Archer focuses on the design, development and certification of zero-emissions air taxis aimed at reducing traffic congestion in densely populated metropolitan areas. The company's flagship prototypes, “Maker” and “Midnight,” have been engineered to deliver quiet, efficient short-haul flights with ranges of up to 100 miles per charge.

Headquartered in Palo Alto, California, Archer operates a manufacturing facility in nearby Santa Cruz County and maintains research partnerships with automotive and energy companies, including a collaboration with Stellantis to integrate advanced battery systems.

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