Archer Aviation (NYSE:ACHR) Shares Gap Down Following Weak Earnings

Key Points

• Archer Aviation's shares declined significantly after the company reported a quarterly EPS of ($0.36), missing analyst expectations by a notable $0.16.
• Analysts have provided a mix of ratings, with several maintaining a "buy" rating and price targets ranging from $10.00 to $18.00 despite the disappointing earnings.
• Insider transactions revealed significant stock sales, with CTO Thomas Paul Muniz selling over 80,000 shares, reflecting a 6.06% decrease in his position.

Archer Aviation Inc. (NYSE:ACHR - Get Free Report) shares gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $9.54, but opened at $9.25. Archer Aviation shares last traded at $9.90, with a volume of 19,392,482 shares trading hands.

The company reported ($0.36) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.24) by ($0.12).

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on the stock. JPMorgan Chase & Co. increased their price target on shares of Archer Aviation from $9.00 to $10.00 and gave the stock a "neutral" rating in a report on Friday, August 1st. Needham & Company LLC reissued a "buy" rating and issued a $13.00 price target on shares of Archer Aviation in a report on Tuesday. Canaccord Genuity Group reissued a "buy" rating on shares of Archer Aviation in a report on Thursday, July 17th. HC Wainwright reissued a "buy" rating and issued a $18.00 price target on shares of Archer Aviation in a report on Tuesday. Finally, UBS Group reissued a "buy" rating on shares of Archer Aviation in a report on Thursday, July 17th. One analyst has rated the stock with a hold rating and seven have given a buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $13.43.

Insider Buying and Selling

In related news, CTO Thomas Paul Muniz sold 80,919 shares of the company's stock in a transaction that occurred on Friday, May 16th. The shares were sold at an average price of $12.99, for a total value of $1,051,137.81. Following the transaction, the chief technology officer directly owned 1,253,294 shares in the company, valued at approximately $16,280,289.06. This represents a 6.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Mark Mesler sold 50,775 shares of the company's stock in a transaction that occurred on Friday, May 16th. The stock was sold at an average price of $12.99, for a total transaction of $659,567.25. Following the completion of the transaction, the chief financial officer owned 711,525 shares in the company, valued at approximately $9,242,709.75. This trade represents a 6.66% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 326,960 shares of company stock valued at $4,018,019 in the last 90 days. 7.65% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. California State Teachers Retirement System grew its position in Archer Aviation by 47.1% during the second quarter. California State Teachers Retirement System now owns 510,176 shares of the company's stock valued at $5,535,000 after acquiring an additional 163,393 shares during the last quarter. Canada Pension Plan Investment Board bought a new position in shares of Archer Aviation in the second quarter worth approximately $830,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of Archer Aviation by 55.5% in the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 298,910 shares of the company's stock worth $3,243,000 after purchasing an additional 106,746 shares during the last quarter. Main Street Financial Solutions LLC bought a new position in shares of Archer Aviation in the second quarter worth approximately $148,000. Finally, The Manufacturers Life Insurance Company grew its holdings in shares of Archer Aviation by 44.6% in the second quarter. The Manufacturers Life Insurance Company now owns 285,666 shares of the company's stock worth $3,099,000 after purchasing an additional 88,125 shares during the last quarter. 59.34% of the stock is currently owned by institutional investors.

Archer Aviation Price Performance

The company has a quick ratio of 15.80, a current ratio of 22.30 and a debt-to-equity ratio of 0.05. The stock has a market cap of $5.48 billion, a P/E ratio of -7.40 and a beta of 3.08. The firm's fifty day moving average price is $10.61 and its 200-day moving average price is $9.38.

Archer Aviation Company Profile

Archer Aviation Inc, together with its subsidiaries, engages in designs, develops, and operates electric vertical takeoff and landing aircraft for use in urban air mobility. The company was formerly known as Atlas Crest Investment Corp. and changed its name to Archer Aviation Inc The company is headquartered in San Jose, California.