Archer Aviation (NYSE:ACHR) Trading Down 1.9% - Here's Why

Key Points

• Archer Aviation shares fell 1.9% to approximately $4.65 in mid-day trading, with volume 21% below the average. The stock is trading below both its 50-day ($5.35) and 200-day ($6.15) moving averages.
• Analyst sentiment remains mixed, with four Buy ratings, two Holds and one Sell; the consensus rating is Hold with an average price target of $11.83. Canaccord Genuity recently lowered its target from $13 to $12.
• Archer missed its latest quarterly expectations, reporting a loss of $0.28 per share versus the $0.25 consensus estimate and revenue of $1.60 million versus $1.66 million expected. Insiders have sold 250,743 shares worth about $1.5 million over the past three months, primarily to cover tax obligations from vested equity awards.

Shares of Archer Aviation Inc. (NYSE:ACHR - Get Free Report) were down 1.9% during mid-day trading on Friday . The company traded as low as $4.57 and last traded at $4.6520. 29,682,283 shares changed hands during mid-day trading, a decline of 21% from the average daily volume of 37,650,461 shares. The stock had previously closed at $4.74.

Analyst Ratings Changes

Several brokerages have recently commented on ACHR. Weiss Ratings restated a "sell (d-)" rating on shares of Archer Aviation in a research report on Friday, July 17th. Canaccord Genuity Group cut their target price on Archer Aviation from $13.00 to $12.00 and set a "buy" rating for the company in a research report on Tuesday, May 12th. Four research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Archer Aviation presently has a consensus rating of "Hold" and an average target price of $11.83.

Archer Aviation Price Performance

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 firm's fifty day moving average price is $5.35 and its 200 day moving average price is $6.15. The stock has a market cap of $3.53 billion, a PE ratio of -4.23 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 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 the consensus estimate of $1.66 million. During the same period last year, the firm earned ($0.17) earnings per share. As a group, equities analysts expect that Archer Aviation Inc. will post -1.4 EPS for the current fiscal year.

Insider Transactions at Archer Aviation

In other Archer Aviation news, CFO Priya Gupta sold 9,860 shares of Archer Aviation stock in a transaction that occurred on 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 owned 189,050 shares of the company's stock, valued at $1,124,847.50. The trade was a 4.96% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. 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 company'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 value of $73,863.30. Following the sale, the chief accounting officer directly 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. 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.

Institutional Investors Weigh In On Archer Aviation

A number of hedge funds have recently bought and sold shares of ACHR. Farther Finance Advisors LLC boosted its stake in shares of Archer Aviation by 7.0% during the fourth quarter. Farther Finance Advisors LLC now owns 18,659 shares of the company's stock valued at $140,000 after purchasing an additional 1,220 shares during the period. Integrated Wealth Concepts LLC increased its stake in Archer Aviation by 11.1% in the 1st quarter. Integrated Wealth Concepts LLC now owns 13,770 shares of the company's stock worth $98,000 after buying an additional 1,373 shares during the period. Meridian Investment Counsel Inc. lifted its holdings in Archer Aviation by 3.4% during the 4th quarter. Meridian Investment Counsel Inc. now owns 43,950 shares of the company's stock valued at $331,000 after buying an additional 1,440 shares in the last quarter. Choreo LLC lifted its holdings in Archer Aviation by 8.1% during the 4th quarter. Choreo LLC now owns 20,802 shares of the company's stock valued at $157,000 after buying an additional 1,555 shares in the last quarter. Finally, Geneos Wealth Management Inc. boosted its position in Archer Aviation by 105.3% in the 2nd quarter. Geneos Wealth Management Inc. now owns 3,318 shares of the company's stock valued at $36,000 after buying an additional 1,702 shares during the period. Hedge funds and other institutional investors own 59.34% of the company's stock.

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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