Archer Aviation (NYSE:ACHR) Trading Down 2.4% - Here's What Happened

Key Points

• Archer Aviation shares fell 2.4% on Thursday, trading as low as $6.35 on heavy volume that was about 51% above average.
• Recent analyst commentary was mixed but still constructive overall. Needham and Canaccord both cut price targets while keeping Buy ratings, and the consensus rating remains “Moderate Buy” with an average price target of $11.83.
• The company continues to post losses and miss estimates. Archer reported a quarterly EPS loss of $0.28 versus expectations for a $0.25 loss, with revenue of $1.6 million coming in slightly below estimates.

Archer Aviation Inc. (NYSE:ACHR - Get Free Report) shares were down 2.4% on Thursday . The company traded as low as $6.35 and last traded at $6.3740. Approximately 57,090,505 shares were traded during mid-day trading, an increase of 51% from the average daily volume of 37,736,141 shares. The stock had previously closed at $6.53.

Analyst Upgrades and Downgrades

ACHR has been the subject of several recent research reports. Needham & Company LLC dropped their target price on shares of Archer Aviation from $10.00 to $9.00 and set a "buy" rating for the company in a report on Tuesday, March 3rd. Weiss Ratings restated a "sell (d-)" rating on shares of Archer Aviation in a report on Monday, April 20th. Finally, Canaccord Genuity Group dropped their target price 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 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 company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $11.83.

Archer Aviation Price Performance

The company has a debt-to-equity ratio of 0.06, a quick ratio of 18.06 and a current ratio of 18.06. The company's fifty day simple moving average is $5.94 and its two-hundred day simple moving average is $6.99. The stock has a market capitalization of $4.84 billion, a PE ratio of -5.79 and a beta of 3.14.

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 business had revenue of $1.60 million for the quarter, compared to analysts' expectations of $1.66 million. During the same period in the prior year, the business earned ($0.17) EPS. As a group, sell-side analysts predict that Archer Aviation Inc. will post -1.47 EPS for the current year.

Insider Activity

In other news, insider Tosha Perkins sold 10,949 shares of Archer Aviation stock in a transaction dated Friday, March 13th. The shares were sold at an average price of $6.27, for a total transaction of $68,650.23. Following the completion of the sale, the insider directly owned 384,768 shares in the company, valued at $2,412,495.36. The trade was a 2.77% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Eric Lentell sold 48,169 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 transaction of $286,605.55. Following the sale, the insider owned 141,084 shares of the company's stock, valued at approximately $839,449.80. This trade represents a 25.45% 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 sold a total of 282,840 shares of company stock worth $1,703,688 in the last three months. Company insiders own 7.65% of the company's stock.

Institutional Investors Weigh In On Archer Aviation

A number of hedge funds and other institutional investors have recently modified their holdings of ACHR. AQR Capital Management LLC purchased a new stake in shares of Archer Aviation during the first quarter worth about $293,000. Integrated Wealth Concepts LLC grew its holdings in shares of Archer Aviation by 11.1% during the first 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 in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of Archer Aviation by 44.7% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 192,164 shares of the company's stock worth $1,366,000 after buying an additional 59,317 shares in the last quarter. NewEdge Advisors LLC grew its holdings in shares of Archer Aviation by 5.1% during the first quarter. NewEdge Advisors LLC now owns 35,739 shares of the company's stock worth $254,000 after buying an additional 1,738 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of Archer Aviation by 51.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 844,017 shares of the company's stock worth $6,001,000 after buying an additional 285,414 shares in the last quarter. 59.34% of the stock is currently owned by hedge funds and other institutional investors.

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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