Archer Aviation (NYSE:ACHR) Trading Up 7.1% - Time to Buy?

Key Points

• Shares rose 7.1% intraday to about $6.08 on Wednesday with 26.0M shares traded (a 24% decline vs. average), while the stock's 50-/200-day moving averages sit at $6.27 and $8.10 respectively.
• Analysts hold a consensus "Moderate Buy" rating with an average price target of $12 (5 Buys, 2 Holds, 1 Sell), though recent firm-level price targets have been trimmed (e.g., Needham cut its target from $10 to $9).
• Archer missed quarterly estimates (EPS ($0.26) vs. ($0.17) expected; revenue $0.30M vs. $1.40M expected) despite large YoY revenue growth, but displays strong liquidity (quick/current ratios 19.89), low debt-to-equity (0.05), and recent insider selling of 255,750 shares worth ~$1.65M amid 59.3% institutional ownership.

Archer Aviation Inc. (NYSE:ACHR - Get Free Report)'s share price traded up 7.1% during mid-day trading on Wednesday . The company traded as high as $6.09 and last traded at $6.0750. 26,036,808 shares changed hands during trading, a decline of 24% from the average session volume of 34,187,785 shares. The stock had previously closed at $5.67.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the stock. Weiss Ratings reissued a "sell (d-)" rating on shares of Archer Aviation in a research note on Wednesday, January 21st. Needham & Company LLC cut their price objective 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 investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $12.00.

Archer Aviation Trading Up 7.1%

The company has a quick ratio of 19.89, a current ratio of 19.89 and a debt-to-equity ratio of 0.05. The company's 50-day moving average is $6.27 and its 200-day moving average is $8.10. The stock has a market capitalization of $4.52 billion, a price-to-earnings ratio of -6.14 and a beta of 3.24.

Archer Aviation (NYSE:ACHR - Get Free Report) last posted its earnings results on Monday, March 2nd. The company reported ($0.26) earnings per share for the quarter, missing the consensus estimate of ($0.17) by ($0.09). The business had revenue of $0.30 million for the quarter, compared to the consensus estimate of $1.40 million. The company's revenue for the quarter was up 29900.0% compared to the same quarter last year. Research analysts anticipate that Archer Aviation Inc. will post -1.32 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Archer Aviation news, CTO Thomas Paul Muniz sold 94,725 shares of the firm's stock in a transaction on Thursday, March 5th. The stock was sold at an average price of $6.46, for a total transaction of $611,923.50. Following the completion of the sale, the chief technology officer owned 1,345,430 shares of the company's stock, valued at $8,691,477.80. This trade represents a 6.58% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Tosha Perkins sold 54,786 shares of Archer Aviation stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $6.46, for a total value of $353,917.56. Following the completion of the sale, the insider owned 377,022 shares in the company, valued at $2,435,562.12. This represents a 12.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 255,750 shares of company stock valued at $1,645,333 in the last ninety days. Company insiders own 7.65% of the company's stock.

Institutional Trading of Archer Aviation

Institutional investors and hedge funds have recently bought and sold shares of the stock. Johnson Investment Counsel Inc. purchased a new position in Archer Aviation during the third quarter worth about $29,000. Bank of Jackson Hole Trust raised its stake in shares of Archer Aviation by 45.9% in the 3rd quarter. Bank of Jackson Hole Trust now owns 3,136 shares of the company's stock valued at $30,000 after acquiring an additional 986 shares during the period. Geneos Wealth Management Inc. lifted its holdings in shares of Archer Aviation by 105.3% in the 2nd quarter. Geneos Wealth Management Inc. now owns 3,318 shares of the company's stock worth $36,000 after acquiring an additional 1,702 shares during the last quarter. Sound Income Strategies LLC purchased a new position in shares of Archer Aviation during the 3rd quarter worth approximately $33,000. Finally, Center for Financial Planning Inc. boosted its position in shares of Archer Aviation by 138.8% during the 3rd quarter. Center for Financial Planning Inc. now owns 3,510 shares of the company's stock worth $34,000 after purchasing an additional 2,040 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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