Archer Aviation (NYSE:ACHR) Shares Down 5% - Should You Sell?

Key Points

• Archer Aviation shares fell 5% in mid-day trading, with the stock last around $5.06 after trading below its prior close of $5.32. Volume was slightly below average.
• Recent analyst views remain mixed but lean positive overall: Weiss Ratings reiterated a sell, while Needham and Canaccord both kept buy ratings despite trimming price targets. The stock’s consensus rating is still Moderate Buy with an average target price of $11.83.
• The company reported a Q1 loss of $0.28 per share, wider than expected, and revenue of $1.60 million, slightly below estimates. Insider selling has also been notable, including CTO Thomas Paul Muniz’s recent sale to cover tax obligations.

Archer Aviation Inc. (NYSE:ACHR - Get Free Report) dropped 5% during mid-day trading on Wednesday . The stock traded as low as $5.04 and last traded at $5.0550. Approximately 36,274,607 shares were traded during mid-day trading, a decline of 5% from the average daily volume of 38,063,523 shares. The stock had previously closed at $5.32.

Analyst Upgrades and Downgrades

Several research firms have weighed in on ACHR. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Archer Aviation in a research report on Monday, April 20th. Needham & Company LLC cut their price objective on Archer Aviation from $10.00 to $9.00 and set a "buy" rating on the stock in a research report on Tuesday, March 3rd. Finally, Canaccord Genuity Group cut their price objective 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. Five analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $11.83.

Archer Aviation Trading Down 5.0%

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 $3.84 billion, a P/E ratio of -4.60 and a beta of 3.14. The stock has a 50-day moving average of $5.97 and a two-hundred day moving average of $6.94.

Archer Aviation (NYSE:ACHR - Get Free Report) last announced its quarterly earnings data on Monday, May 11th. The company reported ($0.28) earnings per share for the quarter, missing analysts' consensus estimates of ($0.25) by ($0.03). The company had revenue of $1.60 million for the quarter, compared to the consensus estimate of $1.66 million. During the same period in the prior year, the firm posted ($0.17) EPS. On average, equities research analysts predict that Archer Aviation Inc. will post -1.47 earnings per share for the current year.

Insider Buying and Selling at Archer Aviation

In other Archer Aviation news, CTO Thomas Paul Muniz sold 91,839 shares of the business's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $5.95, for a total transaction of $546,442.05. Following the completion of the sale, the chief technology officer directly owned 1,462,314 shares in the company, valued at approximately $8,700,768.30. The trade was a 5.91% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Tosha Perkins sold 10,949 shares of the business's stock in a transaction on Friday, March 13th. The shares were sold at an average price of $6.27, for a total transaction of $68,650.23. Following the sale, the insider owned 384,768 shares of the company's stock, valued at approximately $2,412,495.36. This represents a 2.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 282,840 shares of company stock worth $1,703,688. 7.65% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Archer Aviation

A number of hedge funds have recently modified their holdings of the business. AQR Capital Management LLC bought a new position in Archer Aviation in the 1st quarter worth $293,000. Integrated Wealth Concepts LLC boosted its holdings in shares of Archer Aviation by 11.1% during the 1st quarter. Integrated Wealth Concepts LLC now owns 13,770 shares of the company's stock valued at $98,000 after purchasing an additional 1,373 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of Archer Aviation by 44.7% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 192,164 shares of the company's stock valued at $1,366,000 after purchasing an additional 59,317 shares during the last quarter. NewEdge Advisors LLC boosted its holdings in shares of Archer Aviation by 5.1% during the 1st quarter. NewEdge Advisors LLC now owns 35,739 shares of the company's stock valued at $254,000 after purchasing an additional 1,738 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Archer Aviation by 51.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 844,017 shares of the company's stock valued at $6,001,000 after purchasing an additional 285,414 shares during the last quarter. Institutional investors own 59.34% of the company's stock.

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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