Archer Aviation (NYSE:ACHR) Trading Down 5.1% - Here's What Happened

Key Points

• Shares fell 5.1% to $5.095 mid-day, with about 28.19 million shares traded—roughly 22% below the stock's average daily volume.
• Archer missed expectations, reporting Q results of ($0.26) EPS vs. ($0.17) expected and revenue of $0.30M vs. $1.40M expected, while sell-side analysts forecast -$1.32 EPS for the fiscal year.
• Analyst coverage is mixed but the consensus is a "Moderate Buy" with an average price target of $12 (Needham cut its target to $9; Goldman Sachs is neutral at $11), and insiders have sold roughly 380,750 shares in the past 90 days.

Shares of Archer Aviation Inc. (NYSE:ACHR - Get Free Report) were down 5.1% during mid-day trading on Friday . The stock traded as low as $5.07 and last traded at $5.0950. Approximately 28,186,710 shares traded hands during mid-day trading, a decline of 22% from the average daily volume of 36,002,238 shares. The stock had previously closed at $5.37.

Wall Street Analyst Weigh In

ACHR has been the subject of a number of recent analyst reports. Needham & Company LLC decreased their price target on 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 research report on Wednesday, January 21st. Finally, The Goldman Sachs Group assumed coverage on Archer Aviation in a research note on Monday, December 1st. They set a "neutral" rating and a $11.00 target price for the company. Five analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Archer Aviation has an average rating of "Moderate Buy" and a consensus price target of $12.00.

Archer Aviation Stock Down 5.1%

The firm's fifty day moving average price is $6.99 and its two-hundred day moving average price is $8.45. The stock has a market cap of $3.79 billion, a price-to-earnings ratio of -5.15 and a beta of 3.10. 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 issued its earnings results on Monday, March 2nd. The company reported ($0.26) EPS for the quarter, missing the consensus estimate of ($0.17) by ($0.09). The firm had revenue of $0.30 million during the quarter, compared to the consensus estimate of $1.40 million. Archer Aviation's quarterly revenue was up 29900.0% compared to the same quarter last year. Sell-side analysts forecast that Archer Aviation Inc. will post -1.32 earnings per share for the current fiscal year.

Insider Transactions at Archer Aviation

In other news, insider Tosha Perkins sold 10,949 shares of the company's stock in a transaction that occurred on Friday, March 13th. The stock was sold at an average price of $6.27, for a total transaction of $68,650.23. Following the transaction, the insider directly owned 384,768 shares of the company's stock, valued at $2,412,495.36. This represents a 2.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Priya Gupta sold 7,263 shares of the stock in a transaction on Friday, March 13th. The stock was sold at an average price of $6.27, for a total value of $45,539.01. Following the completion of the transaction, the chief financial officer owned 178,512 shares in the company, valued at approximately $1,119,270.24. This represents a 3.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 380,750 shares of company stock valued at $2,645,333. Company insiders own 7.65% of the company's stock.

Institutional Trading of Archer Aviation

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Gould Capital LLC lifted its stake in shares of Archer Aviation by 238.1% in the fourth quarter. Gould Capital LLC now owns 3,560 shares of the company's stock valued at $27,000 after buying an additional 2,507 shares in the last quarter. Strs Ohio acquired a new position in shares of Archer Aviation during the first quarter valued at about $27,000. Caitong International Asset Management Co. Ltd increased its position in shares of Archer Aviation by 840.1% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 3,732 shares of the company's stock worth $28,000 after acquiring an additional 3,335 shares in the last quarter. Johnson Investment Counsel Inc. bought a new stake in shares of Archer Aviation during the third quarter worth about $29,000. Finally, Modus Advisors LLC acquired a new stake in shares of Archer Aviation in the 4th quarter worth about $29,000. Institutional investors own 59.34% of the company's stock.

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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