Archer Aviation (NYSE:ACHR) Trading Down 3.7% Following Insider Selling

Key Points

• Archer Aviation shares fell 3.7% to $6.07 after insider Eric Lentell sold 100,000 shares for $631,000 under a pre-arranged Rule 10b5-1 plan. Lentell and CFO Priya Gupta also reported sales tied partly to tax-withholding obligations.
• Analyst sentiment is mixed: five analysts rate the stock a Buy, three recommend Hold and one rates it Sell. The consensus rating is Hold, with an average price target of $11.50.
• Archer reported quarterly revenue of $5 million, above the $1.94 million estimate, while its adjusted loss of $0.34 per share matched expectations. Institutional investors own 59.34% of the company, which develops electric vertical takeoff and landing aircraft.

Archer Aviation Inc. (NYSE:ACHR - Get Free Report) shares traded down 3.7% during mid-day trading on Monday after an insider sold shares in the company. The company traded as low as $6.00 and last traded at $6.07. 32,166,784 shares traded hands during mid-day trading, a decline of 16% from the average session volume of 38,320,961 shares. The stock had previously closed at $6.30.

Specifically, insider Eric Lentell sold 100,000 shares of the stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $6.31, for a total transaction of $631,000.00. Following the sale, the insider directly owned 85,011 shares in the company, valued at $536,419.41. This represents a 54.05% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Eric Lentell sold 52,762 shares of the firm's stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $6.41, for a total transaction of $338,204.42. Following the completion of the transaction, the insider directly owned 185,011 shares in the company, valued at approximately $1,185,920.51. This represents a 22.19% 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 other news, CFO Priya Gupta sold 10,015 shares of the company's stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $6.41, for a total transaction of $64,196.15. Following the completion of the sale, the chief financial officer owned 202,784 shares of the company's stock, valued at approximately $1,299,845.44. This represents a 4.71% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Analyst Upgrades and Downgrades

ACHR has been the topic of a number of recent analyst reports. Weiss Ratings reissued a "sell (d-)" rating on shares of Archer Aviation in a research note on Friday, July 17th. HC Wainwright restated a "buy" rating on shares of Archer Aviation in a research note on Tuesday, August 11th. UBS Group reaffirmed an "overweight" rating on shares of Archer Aviation in a report on Tuesday, August 11th. Canaccord Genuity Group decreased their price target 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, Wells Fargo & Company set a $18.00 price target on Archer Aviation in a report on Tuesday, August 11th. Five analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Archer Aviation presently has a consensus rating of "Hold" and an average target price of $11.50.

Archer Aviation Price Performance

The business's 50-day simple moving average is $5.30 and its two-hundred day simple moving average is $5.88. The stock has a market cap of $4.67 billion, a price-to-earnings ratio of -5.62 and a beta of 3.20. The company has a debt-to-equity ratio of 0.06, a current ratio of 10.21 and a quick ratio of 10.21.

Archer Aviation (NYSE:ACHR - Get Free Report) last announced its quarterly earnings results on Monday, August 10th. The company reported ($0.34) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.34). The company had revenue of $5.00 million for the quarter, compared to analyst estimates of $1.94 million. Research analysts expect that Archer Aviation Inc. will post -1.37 earnings per share for the current year.

Institutional Investors Weigh In On Archer Aviation

Hedge funds and other institutional investors have recently bought and sold shares of the company. Farther Finance Advisors LLC grew its holdings in Archer Aviation by 7.0% in the fourth quarter. Farther Finance Advisors LLC now owns 18,659 shares of the company's stock worth $140,000 after purchasing an additional 1,220 shares during the period. Integrated Wealth Concepts LLC raised 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 valued at $98,000 after purchasing an additional 1,373 shares during the period. Geneos Wealth Management Inc. boosted its position in shares of 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 in the last quarter. NewEdge Advisors LLC boosted its position in shares of Archer Aviation by 5.1% during the 1st quarter. NewEdge Advisors LLC now owns 35,739 shares of the company's stock worth $254,000 after purchasing an additional 1,738 shares in the last quarter. Finally, Burr Financial Services LLC grew its stake in shares of Archer Aviation by 4.5% in the 4th quarter. Burr Financial Services LLC now owns 40,555 shares of the company's stock valued at $305,000 after buying an additional 1,750 shares during the period. 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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