Archer Aviation (NYSE:ACHR) Trading Down 4% - Here's Why

Key Points

• Archer Aviation's stock declined by 4% to $8.60, with a significant drop in trading volume, averaging 70% less than usual.
• Despite the recent downturn, several firms reaffirmed a "buy" rating on Archer Aviation, with a consensus target price of $13.43, indicating potential for recovery.
• Insider trading activity showed significant share sales, with key executives reducing their stakes, potentially raising concerns among investors.

Shares of Archer Aviation Inc. (NYSE:ACHR - Get Free Report) dropped 4% on Tuesday . The company traded as low as $8.39 and last traded at $8.60. Approximately 9,814,127 shares changed hands during mid-day trading, a decline of 70% from the average daily volume of 32,420,313 shares. The stock had previously closed at $8.95.

Analyst Ratings Changes

Several equities research analysts recently commented on the stock. Canaccord Genuity Group reiterated a "buy" rating on shares of Archer Aviation in a research report on Thursday, July 17th. Cantor Fitzgerald restated an "overweight" rating on shares of Archer Aviation in a research report on Thursday, July 17th. Needham & Company LLC reaffirmed a "buy" rating and issued a $13.00 price target on shares of Archer Aviation in a report on Tuesday, August 12th. JPMorgan Chase & Co. raised their price objective on shares of Archer Aviation from $9.00 to $10.00 and gave the stock a "neutral" rating in a research note on Friday, August 1st. Finally, UBS Group reaffirmed a "buy" rating on shares of Archer Aviation in a research note on Thursday, July 17th. Seven equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $13.43.

Archer Aviation Stock Performance

The firm has a market cap of $5.45 billion, a PE ratio of -6.26 and a beta of 3.07. The stock has a 50-day moving average price of $10.19 and a 200 day moving average price of $9.35. The company has a debt-to-equity ratio of 0.05, a current ratio of 22.30 and a quick ratio of 22.30.

Archer Aviation (NYSE:ACHR - Get Free Report) last issued its quarterly earnings results on Monday, August 11th. The company reported ($0.36) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.24) by ($0.12). Research analysts forecast that Archer Aviation Inc. will post -1.32 earnings per share for the current year.

Insider Activity at Archer Aviation

In other Archer Aviation news, General Counsel Eric Lentell sold 95,896 shares of the stock in a transaction that occurred on Monday, June 30th. The shares were sold at an average price of $10.60, for a total transaction of $1,016,497.60. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CTO Thomas Paul Muniz sold 86,133 shares of the business's stock in a transaction on Monday, August 18th. The shares were sold at an average price of $9.83, for a total transaction of $846,687.39. Following the sale, the chief technology officer directly owned 1,327,469 shares of the company's stock, valued at $13,049,020.27. This represents a 6.09% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 283,964 shares of company stock worth $2,865,206. 7.65% of the stock is currently owned by company insiders.

Institutional Trading of Archer Aviation

A number of institutional investors have recently modified their holdings of the company. AlphaQuest LLC lifted its position in Archer Aviation by 1,181.6% during the second quarter. AlphaQuest LLC now owns 2,576 shares of the company's stock valued at $28,000 after buying an additional 2,375 shares in the last quarter. Sunbelt Securities Inc. purchased a new position in shares of Archer Aviation in the 4th quarter valued at $27,000. GAMMA Investing LLC lifted its holdings in shares of Archer Aviation by 219.5% during the 2nd quarter. GAMMA Investing LLC now owns 2,946 shares of the company's stock valued at $32,000 after acquiring an additional 2,024 shares in the last quarter. Geneos Wealth Management Inc. boosted its position in Archer Aviation by 105.3% during the 2nd quarter. Geneos Wealth Management Inc. now owns 3,318 shares of the company's stock worth $36,000 after purchasing an additional 1,702 shares during the period. Finally, Farther Finance Advisors LLC boosted its position in Archer Aviation by 45.7% during the 2nd quarter. Farther Finance Advisors LLC now owns 3,524 shares of the company's stock worth $38,000 after purchasing an additional 1,106 shares during the period. Hedge funds and other institutional investors own 59.34% of the company's stock.

About Archer Aviation

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.