Archer Aviation (NYSE:ACHR) Trading Down 5.2% - Here's Why

Key Points

• Archer Aviation shares fell 5.2% to $6.6050 in midday trading, with volume 13% above the average session level.
• Analyst sentiment is mixed but leans cautiously positive: five analysts rate ACHR a Buy, three a Hold and one a Sell, producing an overall “Hold” rating and an $11.50 consensus price target.
• The company met its quarterly EPS estimate at a loss of $0.34 per share and reported $5 million in revenue, above expectations of $1.94 million; insiders have sold 166,036 shares worth about $984,348 over the past 90 days.

Archer Aviation Inc. (NYSE:ACHR - Get Free Report)'s stock price fell 5.2% during mid-day trading on Friday . The stock traded as low as $6.49 and last traded at $6.6050. 43,584,065 shares were traded during mid-day trading, an increase of 13% from the average session volume of 38,568,809 shares. The stock had previously closed at $6.97.

Wall Street Analysts Forecast Growth

Several research analysts have commented on ACHR shares. UBS Group restated an "overweight" rating on shares of Archer Aviation in a report on Tuesday. Canaccord Genuity Group dropped their price target on Archer Aviation from $13.00 to $12.00 and set a "buy" rating on the stock in a research report on Tuesday, May 12th. Weiss Ratings reissued a "sell (d-)" rating on shares of Archer Aviation in a research report on Friday, July 17th. Cantor Fitzgerald restated an "overweight" rating and set a $11.00 price target on shares of Archer Aviation in a research note on Tuesday. Finally, Barclays upgraded Archer Aviation to a "hold" rating in a report on Wednesday, July 29th. Five research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Archer Aviation presently has an average rating of "Hold" and a consensus price target of $11.50.

Archer Aviation Price Performance

The company has a current ratio of 18.06, a quick ratio of 18.06 and a debt-to-equity ratio of 0.06. The firm's 50-day moving average price is $5.18 and its two-hundred day moving average price is $5.94. The stock has a market cap of $5.02 billion, a PE ratio of -6.12 and a beta of 3.20.

Archer Aviation (NYSE:ACHR - Get Free Report) last issued its quarterly earnings data on Monday, August 10th. The company reported ($0.34) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.34). The business had revenue of $5.00 million for the quarter, compared to analysts' expectations of $1.94 million. On average, equities analysts expect that Archer Aviation Inc. will post -1.4 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Eric Lentell sold 48,169 shares of the firm's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $5.95, for a total value of $286,605.55. Following the sale, the insider directly owned 141,084 shares in the company, valued at approximately $839,449.80. This trade represents a 25.45% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Harsh Rungta sold 12,414 shares of the business's 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 $73,863.30. Following the transaction, the chief accounting officer owned 87,210 shares of the company's stock, valued at approximately $518,899.50. This trade represents a 12.46% decrease in their position. 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. Over the last 90 days, insiders have sold 166,036 shares of company stock valued at $984,348. Company insiders own 5.55% of the company's stock.

Hedge Funds Weigh In On Archer Aviation

A number of large investors have recently made changes to their positions in ACHR. Gould Capital LLC grew its stake in Archer Aviation by 238.1% during the 4th quarter. Gould Capital LLC now owns 3,560 shares of the company's stock worth $27,000 after buying an additional 2,507 shares during the last quarter. Strs Ohio acquired a new stake in Archer Aviation in the first quarter worth about $27,000. Caitong International Asset Management Co. Ltd grew its stake 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 during the last quarter. Modus Advisors LLC purchased a new stake in shares of Archer Aviation during the fourth quarter worth about $29,000. Finally, Basepoint Wealth LLC acquired a new position in shares of Archer Aviation during the fourth quarter valued at about $32,000. 59.34% of the stock is owned by institutional investors and hedge funds.

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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