Archer Aviation (NYSE:ACHR) Shares Down 2.4% - Here's What Happened

Key Points

• Archer Aviation shares fell 2.4% in midday trading Friday, with volume running below average as the stock traded between $4.69 and $4.74 after closing at $4.85 the prior day.
• Recent analyst activity was mixed, but the overall tone remains cautious: Canaccord Genuity cut its price target to $12 from $13 while keeping a buy rating, and Weiss Ratings reiterated a sell rating. The stock’s consensus analyst view is still Moderate Buy with an average target price of $11.83.
• The company recently reported a wider-than-expected quarterly loss, posting EPS of -$0.28 versus estimates of -$0.25 and revenue of $1.60 million versus $1.66 million expected. Insiders also sold shares in May, including the CFO, though the sales were tied to tax withholding from equity vesting.

Archer Aviation Inc. (NYSE:ACHR - Get Free Report) traded down 2.4% during mid-day trading on Friday . The company traded as low as $4.69 and last traded at $4.7350. 23,367,322 shares changed hands during mid-day trading, a decline of 38% from the average session volume of 37,987,746 shares. The stock had previously closed at $4.85.

Analyst Ratings Changes

A number of brokerages have recently issued reports on ACHR. Canaccord Genuity Group cut their target price on Archer Aviation from $13.00 to $12.00 and set a "buy" rating on the stock in a research report on Tuesday, May 12th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Archer Aviation in a research report on Monday, April 20th. Five research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $11.83.

Archer Aviation Price Performance

The stock's fifty day moving average price is $5.74 and its 200-day moving average price is $6.50. The company has a debt-to-equity ratio of 0.06, a current ratio of 18.06 and a quick ratio of 18.06. The firm has a market cap of $3.60 billion, a price-to-earnings ratio of -4.30 and a beta of 3.19.

Archer Aviation (NYSE:ACHR - Get Free Report) last issued its quarterly earnings results on Monday, May 11th. The company reported ($0.28) EPS for the quarter, missing the consensus estimate of ($0.25) by ($0.03). The company had revenue of $1.60 million for the quarter, compared to analyst estimates of $1.66 million. During the same period in the previous year, the business posted ($0.17) EPS. Equities research analysts predict that Archer Aviation Inc. will post -1.47 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Eric Lentell sold 48,169 shares of the firm's stock in a transaction on Monday, May 18th. The stock was sold at an average price of $5.95, for a total value of $286,605.55. Following the completion of the sale, the insider owned 141,084 shares of the company's stock, valued at $839,449.80. This trade represents a 25.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Priya Gupta sold 9,860 shares of Archer Aviation stock in a transaction on Monday, May 18th. The shares were sold at an average price of $5.95, for a total value of $58,667.00. Following the transaction, the chief financial officer owned 189,050 shares in the company, valued at $1,124,847.50. This represents a 4.96% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 250,743 shares of company stock worth $1,497,672 over the last three months. Company insiders own 5.55% of the company's stock.

Hedge Funds Weigh In On Archer Aviation

Several institutional investors and hedge funds have recently bought and sold shares of ACHR. Gould Capital LLC lifted its position in shares of Archer Aviation by 238.1% in the fourth quarter. Gould Capital LLC now owns 3,560 shares of the company's stock worth $27,000 after purchasing an additional 2,507 shares in the last quarter. Strs Ohio purchased a new position in Archer Aviation during the first quarter valued at approximately $27,000. Caitong International Asset Management Co. Ltd grew its position in Archer Aviation by 840.1% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 3,732 shares of the company's stock valued at $28,000 after purchasing an additional 3,335 shares in the last quarter. Modus Advisors LLC acquired a new position in Archer Aviation in the 4th quarter valued at approximately $29,000. Finally, Basepoint Wealth LLC acquired a new position in Archer Aviation in the 4th quarter valued at approximately $32,000. Hedge funds and other institutional investors own 59.34% of the company's stock.

Archer Aviation Company Profile

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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