Archer Aviation (NYSE:ACHR) Stock Price Up 6.9% - Should You Buy?

Key Points

• Archer Aviation shares rose 6.9% to about $5.59 on heavy trading, but remain below the two-hundred-day moving average of $6.02. The company has a $4.25 billion market capitalization and high volatility, reflected by a beta of 3.20.
• Analyst sentiment is mixed, with four Buy, three Hold and one Sell ratings; the consensus is Hold with an average price target of $11.83. Archer’s latest quarterly results missed expectations, reporting a $0.28 loss per share versus the $0.25 expected and revenue of $1.60 million.
• Insiders sold shares primarily to cover tax obligations, while institutional ownership remains strong at 59.34%. Archer is developing electric vertical takeoff and landing aircraft, including its Midnight air taxi, for sustainable urban transportation.

Archer Aviation Inc. (NYSE:ACHR - Get Free Report) rose 6.9% during trading on Friday . The stock traded as high as $5.60 and last traded at $5.5920. Approximately 33,947,150 shares were traded during mid-day trading, a decline of 9% from the average daily volume of 37,352,359 shares. The stock had previously closed at $5.23.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the stock. Weiss Ratings reiterated a "sell (d-)" rating on shares of Archer Aviation in a report on Friday, July 17th. Canaccord Genuity Group reduced their price objective on Archer Aviation from $13.00 to $12.00 and set a "buy" rating on the stock in a research note on Tuesday, May 12th. Finally, Barclays upgraded Archer Aviation to a "hold" rating in a report on Wednesday, July 29th. Four research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $11.83.

Archer Aviation Trading Up 6.9%

The company's fifty day moving average is $5.21 and its two-hundred day moving average is $6.02. 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 cap of $4.25 billion, a price-to-earnings ratio of -5.08 and a beta of 3.20.

Archer Aviation (NYSE:ACHR - Get Free Report) last posted its quarterly earnings results on Monday, May 11th. The company reported ($0.28) EPS for the quarter, missing the consensus estimate of ($0.25) by ($0.03). The business had revenue of $1.60 million for the quarter, compared to the consensus estimate of $1.66 million. During the same period in the previous year, the business earned ($0.17) EPS. On average, research analysts predict that Archer Aviation Inc. will post -1.4 EPS for the current fiscal year.

Insider Activity

In related news, insider Eric Lentell sold 48,169 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $5.95, for a total value of $286,605.55. Following the transaction, 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 transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Priya Gupta sold 9,860 shares of Archer Aviation stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $5.95, for a total value of $58,667.00. Following the sale, the chief financial officer directly owned 189,050 shares of the company's stock, valued at $1,124,847.50. This trade represents a 4.96% 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. In the last three months, insiders have sold 250,743 shares of company stock worth $1,497,672. 5.55% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Archer Aviation

Hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted its holdings in shares of Archer Aviation by 4.4% in the 4th quarter. Vanguard Group Inc. now owns 54,676,158 shares of the company's stock valued at $411,165,000 after purchasing an additional 2,312,899 shares during the last quarter. ARK Investment Management LLC grew its stake in Archer Aviation by 12.4% during the 4th quarter. ARK Investment Management LLC now owns 35,170,701 shares of the company's stock worth $264,484,000 after buying an additional 3,869,252 shares during the last quarter. State Street Corp increased its position in Archer Aviation by 11.2% during the fourth quarter. State Street Corp now owns 32,773,136 shares of the company's stock worth $246,454,000 after buying an additional 3,293,130 shares during the period. Morgan Stanley lifted its stake in Archer Aviation by 21.6% in the fourth quarter. Morgan Stanley now owns 15,717,522 shares of the company's stock valued at $118,196,000 after buying an additional 2,796,488 shares during the last quarter. Finally, Geode Capital Management LLC lifted its stake in Archer Aviation by 14.9% in the fourth quarter. Geode Capital Management LLC now owns 14,385,647 shares of the company's stock valued at $108,197,000 after buying an additional 1,867,648 shares during the last quarter. 59.34% of the stock is currently owned by hedge funds and other 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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