Archer Aviation (NYSE:ACHR) Trading Down 3.9% - What's Next?

Key Points

• Shares fell 3.9% to $5.615 on Wednesday with ~23.3M shares traded, about 29% below the stock's average daily volume.
• Analysts have a consensus rating of “Moderate Buy” with a $12 average price target (five Buys, two Holds, one Sell), though Needham trimmed its target to $9 and Weiss Ratings reiterated a sell.
• Recent fundamentals disappointed: Archer reported a quarterly EPS loss of ($0.26) vs. ($0.17) expected and just $0.3M in revenue, while insiders have sold shares (255,750 shares in the last 90 days) amid heavy institutional ownership (~59%).

Archer Aviation Inc. (NYSE:ACHR - Get Free Report) dropped 3.9% on Wednesday . The company traded as low as $5.47 and last traded at $5.6150. Approximately 23,306,894 shares were traded during trading, a decline of 29% from the average daily volume of 32,982,762 shares. The stock had previously closed at $5.84.

Analysts Set New Price Targets

ACHR has been the topic of a number of research reports. Weiss Ratings restated a "sell (d-)" rating on shares of Archer Aviation in a research report on Monday, April 20th. Needham & Company LLC lowered their price target on Archer Aviation from $10.00 to $9.00 and set a "buy" rating on the stock in a research report on Tuesday, March 3rd. Five research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Archer Aviation presently has a consensus rating of "Moderate Buy" and a consensus price target of $12.00.

Archer Aviation Stock Down 3.9%

The stock has a 50 day moving average price of $6.08 and a 200-day moving average price of $7.72. The stock has a market capitalization of $4.18 billion, a P/E ratio of -5.67 and a beta of 3.24. The company has a debt-to-equity ratio of 0.05, a current ratio of 19.89 and a quick ratio of 19.89.

Archer Aviation (NYSE:ACHR - Get Free Report) last announced its quarterly earnings data on Monday, March 2nd. The company reported ($0.26) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.17) by ($0.09). The firm had revenue of $0.30 million during the quarter, compared to analysts' expectations of $1.40 million. The company's revenue was up 29900.0% compared to the same quarter last year. As a group, research analysts expect that Archer Aviation Inc. will post -1.51 EPS for the current fiscal year.

Insider Activity

In other news, CAO Harsh Rungta sold 22,826 shares of the firm's stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $6.46, for a total transaction of $147,455.96. Following the transaction, the chief accounting officer directly owned 65,458 shares of the company's stock, valued at approximately $422,858.68. This trade represents a 25.86% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Eric Lentell sold 37,390 shares of the firm's stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $6.46, for a total value of $241,539.40. Following the transaction, the insider directly owned 139,483 shares in the company, valued at $901,060.18. This trade represents a 21.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 255,750 shares of company stock valued at $1,645,333. Company insiders own 7.65% of the company's stock.

Institutional Trading of Archer Aviation

Several large investors have recently modified their holdings of the business. Vanguard Group Inc. grew its stake in shares of Archer Aviation by 4.4% in the fourth quarter. Vanguard Group Inc. now owns 54,676,158 shares of the company's stock worth $411,165,000 after purchasing an additional 2,312,899 shares during the last quarter. ARK Investment Management LLC grew its stake in shares of Archer Aviation by 12.4% in the fourth quarter. ARK Investment Management LLC now owns 35,170,701 shares of the company's stock worth $264,484,000 after purchasing an additional 3,869,252 shares during the last quarter. State Street Corp grew its stake in shares of Archer Aviation by 11.2% in the fourth quarter. State Street Corp now owns 32,773,136 shares of the company's stock worth $246,454,000 after purchasing an additional 3,293,130 shares during the last quarter. Morgan Stanley grew its stake in shares of Archer Aviation by 21.6% in the fourth quarter. Morgan Stanley now owns 15,717,522 shares of the company's stock worth $118,196,000 after purchasing an additional 2,796,488 shares during the last quarter. Finally, Geode Capital Management LLC grew its stake in shares of Archer Aviation by 14.9% in the fourth quarter. Geode Capital Management LLC now owns 14,385,647 shares of the company's stock worth $108,197,000 after purchasing an additional 1,867,648 shares during the last quarter. 59.34% of the stock is owned by 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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