Archer Aviation (NYSE:ACHR) Trading Down 2.5% - Here's What Happened

Key Points

• Archer Aviation shares fell 2.5% to about $5.18 in mid-day trading, with volume below its average. The stock has a $3.93 billion market capitalization and trades below both its 50-day and 200-day moving averages.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $11.83. Recent actions included a Barclays upgrade to Hold, while Canaccord lowered its target to $12 and maintained a Buy rating.
• 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 sold shares primarily to cover tax obligations related to equity vesting, while institutional investors own 59.34% of the stock.

Shares of Archer Aviation Inc. (NYSE:ACHR - Get Free Report) dropped 2.5% during mid-day trading on Wednesday . The company traded as low as $5.13 and last traded at $5.1770. Approximately 23,551,285 shares changed hands during mid-day trading, a decline of 37% from the average session volume of 37,451,301 shares. The stock had previously closed at $5.31.

Analysts Set New Price Targets

ACHR has been the topic of several recent research reports. Barclays upgraded shares of Archer Aviation to a "hold" rating in a research report on Wednesday, July 29th. Canaccord Genuity Group cut their price target on shares of Archer Aviation from $13.00 to $12.00 and set a "buy" rating for the company in a research note on Tuesday, May 12th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Archer Aviation in a report on Friday, July 17th. Four equities 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's stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $11.83.

Archer Aviation Stock Down 2.5%

The company has a debt-to-equity ratio of 0.06, a current ratio of 18.06 and a quick ratio of 18.06. The firm has a 50 day simple moving average of $5.26 and a 200-day simple moving average of $6.07. The stock has a market capitalization of $3.93 billion, a price-to-earnings ratio of -4.71 and a beta of 3.20.

Archer Aviation (NYSE:ACHR - Get Free Report) last issued its quarterly earnings data 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 the consensus estimate of $1.66 million. During the same period in the previous year, the firm posted ($0.17) earnings per share. On average, sell-side analysts forecast 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 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 sale, the insider directly owned 141,084 shares in the company, valued at $839,449.80. This represents a 25.45% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Thomas Paul Muniz sold 91,839 shares of the firm's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $5.95, for a total value of $546,442.05. Following the sale, the chief technology officer directly owned 1,462,314 shares of the company's stock, valued at $8,700,768.30. This represents a 5.91% 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. Insiders sold a total of 250,743 shares of company stock valued at $1,497,672 over the last three months. 5.55% of the stock is owned by corporate insiders.

Institutional Trading of Archer Aviation

Large investors have recently made changes to their positions in the business. Handelsbanken Fonder AB increased its stake in shares of Archer Aviation by 41.5% in the second quarter. Handelsbanken Fonder AB now owns 227,400 shares of the company's stock valued at $1,076,000 after buying an additional 66,700 shares in the last quarter. Wealthcare Advisory Partners LLC lifted its position in Archer Aviation by 22.9% during the 2nd quarter. Wealthcare Advisory Partners LLC now owns 13,126 shares of the company's stock worth $62,000 after buying an additional 2,447 shares in the last quarter. Focus Financial Network Inc. grew its holdings in Archer Aviation by 20.0% during the 2nd quarter. Focus Financial Network Inc. now owns 16,890 shares of the company's stock worth $80,000 after acquiring an additional 2,820 shares during the last quarter. CoreCap Advisors LLC grew its holdings in Archer Aviation by 97.6% during the 2nd quarter. CoreCap Advisors LLC now owns 13,706 shares of the company's stock worth $65,000 after acquiring an additional 6,771 shares during the last quarter. Finally, Western Wealth Management LLC increased its position in Archer Aviation by 22.0% in the 1st quarter. Western Wealth Management LLC now owns 22,962 shares of the company's stock valued at $119,000 after acquiring an additional 4,144 shares in the last quarter. 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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