Archer Aviation (NYSE:ACHR) Trading Up 3.4% - Time to Buy?

Key Points

• Archer Aviation shares rose 3.4% on Friday, trading as high as $6.54 on volume that was 34% above average.
• Wall Street remains cautiously positive overall: Archer has a Moderate Buy consensus rating with an average price target of $12.00, though some analysts recently cut targets and one maintained a sell rating.
• The company continues to show mixed fundamentals, including a weak quarterly earnings report that missed estimates and insider selling in recent months, even as it maintains strong liquidity and low debt.

Shares of Archer Aviation Inc. (NYSE:ACHR - Get Free Report) traded up 3.4% during trading on Friday . The company traded as high as $6.54 and last traded at $6.4940. 45,349,123 shares traded hands during trading, an increase of 34% from the average session volume of 33,775,250 shares. The stock had previously closed at $6.28.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on ACHR shares. Needham & Company LLC lowered their price objective on Archer Aviation from $10.00 to $9.00 and set a "buy" rating for the company in a research note on Tuesday, March 3rd. Weiss Ratings reissued a "sell (d-)" rating on shares of Archer Aviation in a research note on Monday, April 20th. Five research 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. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $12.00.

Archer Aviation Price Performance

The company has a current ratio of 19.89, a quick ratio of 19.89 and a debt-to-equity ratio of 0.05. The business has a 50-day moving average of $5.97 and a 200 day moving average of $7.49. The firm has a market capitalization of $4.84 billion, a PE ratio of -6.56 and a beta of 3.13.

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

Insiders Place Their Bets

In other news, CAO Harsh Rungta sold 22,826 shares of the business's stock in a transaction that occurred on Thursday, March 5th. The stock was sold at an average price of $6.46, for a total value of $147,455.96. Following the transaction, the chief accounting officer owned 65,458 shares in the company, valued at $422,858.68. The trade was a 25.86% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CTO Thomas Paul Muniz sold 9,580 shares of the stock in a transaction that occurred on Friday, March 13th. The shares were sold at an average price of $6.27, for a total value of $60,066.60. Following the sale, the chief technology officer directly owned 1,352,208 shares of the company's stock, valued at $8,478,344.16. The trade was a 0.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 255,750 shares of company stock worth $1,645,333 in the last ninety days. 7.65% of the stock is owned by corporate insiders.

Institutional Trading of Archer Aviation

A number of large investors have recently bought and sold shares of the company. Gould Capital LLC grew its stake in shares of 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 acquiring an additional 2,507 shares during the period. Strs Ohio bought a new stake in Archer Aviation in the 1st quarter valued at about $27,000. Caitong International Asset Management Co. Ltd lifted its holdings in 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 valued at $28,000 after purchasing an additional 3,335 shares during the last quarter. Johnson Investment Counsel Inc. purchased a new stake in Archer Aviation during the third quarter valued at about $29,000. Finally, Modus Advisors LLC bought a new position in Archer Aviation during the fourth quarter worth about $29,000. 59.34% of the stock is owned by hedge funds and other 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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