Archer Aviation (NYSE:ACHR) Shares Up 9.8% - What's Next?

Key Points

• Archer Aviation shares jumped 9.8% to about $5.32, with roughly 29.2 million shares traded. The stock remains below its 200-day moving average of $6.09.
• Analyst sentiment is mixed: four analysts rate Archer a Buy, two recommend Hold and one recommends Sell. The consensus rating is Hold, with an average price target of $11.83.
• Archer missed quarterly expectations, reporting a loss of $0.28 per share versus the projected $0.25 loss and revenue of $1.60 million versus estimates of $1.66 million. Insiders sold shares primarily to cover tax obligations, while institutional investors collectively own 59.34% of the company.

Archer Aviation Inc. (NYSE:ACHR - Get Free Report) shares shot up 9.8% on Tuesday . The company traded as high as $5.36 and last traded at $5.3150. Approximately 29,188,090 shares were traded during mid-day trading, a decline of 22% from the average session volume of 37,562,898 shares. The stock had previously closed at $4.84.

Wall Street Analysts Forecast Growth

ACHR has been the subject of several research reports. Canaccord Genuity Group decreased their price target on shares of Archer Aviation from $13.00 to $12.00 and set a "buy" rating for the company in a report on Tuesday, May 12th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Archer Aviation in a research report on Friday, July 17th. Four research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Archer Aviation currently has an average rating of "Hold" and an average target price of $11.83.

Archer Aviation Trading Up 9.8%

The company has a 50 day moving average of $5.29 and a 200 day moving average of $6.09. The firm has a market cap of $4.04 billion, a P/E ratio of -4.83 and a beta of 3.20. The company has a debt-to-equity ratio of 0.06, a quick ratio of 18.06 and a current ratio of 18.06.

Archer Aviation (NYSE:ACHR - Get Free Report) last issued its quarterly earnings data on Monday, May 11th. The company reported ($0.28) earnings per share 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 analysts' expectations of $1.66 million. During the same quarter in the previous year, the firm posted ($0.17) earnings per share. Analysts predict that Archer Aviation Inc. will post -1.4 EPS for the current fiscal year.

Insider Buying and Selling at Archer Aviation

In related news, CAO Harsh Rungta sold 12,414 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 $73,863.30. Following the completion of the sale, the chief accounting officer owned 87,210 shares of the company's stock, valued at approximately $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 accessible 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 company's stock in a transaction on Monday, May 18th. The stock was sold at an average price of $5.95, for a total transaction 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 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. Insiders have sold a total of 250,743 shares of company stock worth $1,497,672 over the last quarter. Company insiders own 5.55% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its holdings in Archer Aviation by 4.4% in the 4th quarter. Vanguard Group Inc. now owns 54,676,158 shares of the company's stock worth $411,165,000 after purchasing an additional 2,312,899 shares during the last quarter. ARK Investment Management LLC grew its holdings in Archer Aviation by 12.4% during the fourth quarter. ARK Investment Management LLC now owns 35,170,701 shares of the company's stock valued at $264,484,000 after purchasing an additional 3,869,252 shares during the last quarter. State Street Corp raised its position in shares of Archer Aviation by 11.2% in the fourth quarter. State Street Corp now owns 32,773,136 shares of the company's stock valued at $246,454,000 after purchasing an additional 3,293,130 shares during the period. Morgan Stanley lifted its stake in shares of Archer Aviation by 21.6% in the fourth quarter. Morgan Stanley now owns 15,717,522 shares of the company's stock worth $118,196,000 after buying an additional 2,796,488 shares during the last quarter. Finally, Geode Capital Management LLC boosted its holdings in shares of Archer Aviation by 14.9% during the 4th quarter. Geode Capital Management LLC now owns 14,385,647 shares of the company's stock worth $108,197,000 after buying an additional 1,867,648 shares during the period. Institutional investors and hedge funds 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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