Archer Aviation (NYSE:ACHR) Trading Up 5.8% - Here's Why

Key Points

• Archer Aviation shares rose 5.8% on Thursday, with trading volume running well above average at about 63.9 million shares. The stock hit an intraday high of $6.14 after closing at $5.78 the prior day.
• Recent analyst commentary was mixed but still leaned positive overall: Canaccord Genuity and Needham both cut their price targets slightly while keeping Buy ratings, and the stock’s consensus rating remains Moderate Buy with an average target price of $11.83.
• The company recently reported a wider-than-expected quarterly loss of ($0.28) per share on revenue of $1.6 million, and insiders have also been selling shares in transactions tied to tax withholding on vested equity awards.

Shares of Archer Aviation Inc. (NYSE:ACHR - Get Free Report) were up 5.8% on Thursday . The stock traded as high as $6.14 and last traded at $6.1150. Approximately 63,907,968 shares traded hands during mid-day trading, an increase of 80% from the average daily volume of 35,582,531 shares. The stock had previously closed at $5.78.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on ACHR shares. Canaccord Genuity Group reduced their price target on Archer Aviation from $13.00 to $12.00 and set a "buy" rating on the stock in a research note on Tuesday, May 12th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Archer Aviation in a research report on Monday, April 20th. Finally, Needham & Company LLC reduced their target price on shares of 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 analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $11.83.

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 company has a market cap of $4.55 billion, a PE ratio of -5.56 and a beta of 3.13. The firm has a 50 day moving average of $5.85 and a two-hundred day moving average of $7.17.

Archer Aviation (NYSE:ACHR - Get Free Report) last posted its quarterly earnings results on Monday, May 11th. The company reported ($0.28) earnings per share for the quarter, missing the consensus estimate of ($0.25) by ($0.03). The company had revenue of $1.60 million during the quarter, compared to the consensus estimate of $1.66 million. During the same quarter in the prior year, the firm earned ($0.17) EPS. Research analysts predict that Archer Aviation Inc. will post -1.51 earnings per share for the current fiscal year.

Insider Transactions at Archer Aviation

In related news, CAO Harsh Rungta sold 12,414 shares of the 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 sale, the chief accounting officer directly owned 87,210 shares of the company's stock, valued at approximately $518,899.50. This represents a 12.46% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 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 the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $5.95, for a total transaction of $58,667.00. Following the sale, the chief financial officer directly owned 189,050 shares in the company, valued at $1,124,847.50. This trade represents a 4.96% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 502,739 shares of company stock valued at $3,124,236. 7.65% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Archer Aviation

Institutional investors have recently made changes to their positions in the company. Johnson Investment Counsel Inc. purchased a new stake in shares of Archer Aviation during the third quarter valued at approximately $29,000. Bank of Jackson Hole Trust boosted its stake in Archer Aviation by 45.9% during the 3rd 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 last quarter. Geneos Wealth Management Inc. boosted its stake in Archer Aviation by 105.3% during the 2nd 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 last quarter. Center for Financial Planning Inc. boosted its stake in Archer Aviation by 138.8% during the 3rd 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 last quarter. Finally, Gould Capital LLC boosted 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 valued at $27,000 after purchasing an additional 2,507 shares during the last quarter. Hedge funds and other institutional investors own 59.34% of the company's stock.

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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