Archer Aviation (NYSE:ACHR) Trading Up 4.5% - Time to Buy?

Key Points

• Archer Aviation shares rose 4.5% on Thursday, trading as high as $7.09 on volume of about 58.1 million shares, well above its average daily volume.
• Analyst sentiment remains cautiously positive, with a “Moderate Buy” consensus and an average price target of $11.83, though some firms have recently lowered their targets and Weiss Ratings reiterated a sell rating.
• The company is still loss-making, reporting a quarterly EPS loss of $0.28 versus expectations of a $0.25 loss, while insiders have recently sold shares and analysts expect full-year EPS of -1.51.

Archer Aviation Inc. (NYSE:ACHR - Get Free Report)'s stock price was up 4.5% on Thursday . The stock traded as high as $7.09 and last traded at $6.8450. Approximately 58,122,558 shares traded hands during trading, an increase of 58% from the average daily volume of 36,855,406 shares. The stock had previously closed at $6.55.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on ACHR shares. Weiss Ratings restated a "sell (d-)" rating on shares of Archer Aviation in a report on Monday, April 20th. Canaccord Genuity Group dropped their target price on shares of Archer Aviation from $13.00 to $12.00 and set a "buy" rating for the company in a report on Tuesday, May 12th. Finally, Needham & Company LLC dropped their target price on shares of Archer Aviation from $10.00 to $9.00 and set a "buy" rating for the company in a 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 issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $11.83.

Archer Aviation Price Performance

The stock has a market capitalization of $5.20 billion, a PE ratio of -6.22 and a beta of 3.13. The company has a debt-to-equity ratio of 0.06, a quick ratio of 18.06 and a current ratio of 18.06. The company's fifty day simple moving average is $5.87 and its two-hundred day simple moving average is $7.05.

Archer Aviation (NYSE:ACHR - Get Free Report) last issued its quarterly earnings results on Monday, May 11th. The company reported ($0.28) EPS for the quarter, missing analysts' consensus estimates of ($0.25) by ($0.03). The firm had revenue of $1.60 million for the quarter, compared to analyst estimates of $1.66 million. During the same period in the previous year, the business posted ($0.17) EPS. As a group, sell-side analysts predict that Archer Aviation Inc. will post -1.51 EPS for the current year.

Insider Buying and Selling at Archer Aviation

In other news, CAO Harsh Rungta sold 12,414 shares of Archer Aviation stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $5.95, for a total transaction of $73,863.30. Following the completion of the sale, the chief accounting officer directly owned 87,210 shares in the company, valued at $518,899.50. The trade was a 12.46% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Priya Gupta sold 9,860 shares of Archer Aviation stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $5.95, for a total transaction of $58,667.00. Following the sale, the chief financial officer owned 189,050 shares of the company's stock, valued at approximately $1,124,847.50. This trade represents a 4.96% decrease in their ownership of the stock. 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 quarter, insiders sold 502,739 shares of company stock valued at $3,124,236. Corporate insiders own 7.65% of the company's stock.

Institutional Investors Weigh In On Archer Aviation

Institutional investors have recently bought and sold shares of the stock. Johnson Investment Counsel Inc. purchased a new stake in Archer Aviation in the third quarter valued at approximately $29,000. Bank of Jackson Hole Trust grew its holdings in Archer Aviation by 45.9% in the third quarter. Bank of Jackson Hole Trust now owns 3,136 shares of the company's stock valued at $30,000 after purchasing an additional 986 shares during the period. Geneos Wealth Management Inc. grew its holdings in Archer Aviation by 105.3% in the second quarter. Geneos Wealth Management Inc. now owns 3,318 shares of the company's stock valued at $36,000 after purchasing an additional 1,702 shares during the period. Center for Financial Planning Inc. grew its holdings in Archer Aviation by 138.8% in the third quarter. Center for Financial Planning Inc. now owns 3,510 shares of the company's stock valued at $34,000 after purchasing an additional 2,040 shares during the period. Finally, Gould Capital LLC grew its holdings in 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 purchasing an additional 2,507 shares during the period. 59.34% of the stock is currently owned by hedge funds and other institutional investors.

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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