Archer Aviation (NYSE:ACHR) Stock Price Down 1.1% - Should You Sell?

Key Points

• Archer Aviation shares fell 1.1% on Wednesday, trading as low as $4.71 and closing near $4.80 on lighter-than-average volume.
• Analyst sentiment is mixed but still generally constructive: the stock has a Moderate Buy consensus with an average price target of $11.83, even though Weiss Ratings kept a sell rating and Canaccord trimmed its target to $12.
• The company remains under pressure operationally, having missed Q1 earnings and revenue estimates and posting a wider-than-expected loss, while insiders have also sold shares recently.

Shares of Archer Aviation Inc. (NYSE:ACHR - Get Free Report) dropped 1.1% during trading on Wednesday . The company traded as low as $4.71 and last traded at $4.7950. Approximately 23,004,101 shares changed hands during mid-day trading, a decline of 39% from the average session volume of 37,715,336 shares. The stock had previously closed at $4.85.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on ACHR shares. Weiss Ratings reiterated a "sell (d-)" rating on shares of Archer Aviation in a research report on Monday, April 20th. Canaccord Genuity Group decreased their price objective 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. Five investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $11.83.

Archer Aviation Trading Down 1.1%

The company has a fifty day simple moving average of $5.68 and a two-hundred day simple moving average of $6.43. The company has a quick ratio of 18.06, a current ratio of 18.06 and a debt-to-equity ratio of 0.06. The stock has a market capitalization of $3.64 billion, a P/E ratio of -4.36 and a beta of 3.19.

Archer Aviation (NYSE:ACHR - Get Free Report) last posted 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 business had revenue of $1.60 million during the quarter, compared to analysts' expectations of $1.66 million. During the same period last year, the firm posted ($0.17) earnings per share. On average, sell-side analysts expect that Archer Aviation Inc. will post -1.47 earnings per share for the current year.

Insiders Place Their Bets

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

Institutional Investors Weigh In On Archer Aviation

Institutional investors have recently added to or reduced their stakes in the stock. Norges Bank bought a new stake in shares of Archer Aviation in the fourth quarter valued at about $58,494,000. Man Group plc grew its holdings in shares of Archer Aviation by 13,793.3% during the second quarter. Man Group plc now owns 4,212,722 shares of the company's stock worth $45,708,000 after buying an additional 4,182,400 shares in the last quarter. BNP Paribas Financial Markets raised its position in Archer Aviation by 423.3% in the 4th quarter. BNP Paribas Financial Markets now owns 5,126,217 shares of the company's stock valued at $38,549,000 after buying an additional 4,146,574 shares during the last quarter. ARK Investment Management LLC raised its position in Archer Aviation by 12.4% in the 4th quarter. ARK Investment Management LLC now owns 35,170,701 shares of the company's stock valued at $264,484,000 after buying an additional 3,869,252 shares during the last quarter. Finally, State Street Corp lifted its stake in Archer Aviation by 11.2% in the 4th quarter. State Street Corp now owns 32,773,136 shares of the company's stock valued at $246,454,000 after acquiring an additional 3,293,130 shares in the last quarter. 59.34% of the stock is owned by institutional investors.

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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