Archer Aviation (NYSE:ACHR) Trading Up 8.8% - Time to Buy?

Key Points

• Archer Aviation shares rose 8.8% in mid-day trading, reaching as high as $5.62 on volume well above average. The stock had closed at $5.08 the prior day.
• Analyst sentiment remains generally positive, with five Buy ratings, two Holds, and one Sell. The consensus price target is $11.83, even after some firms trimmed their targets.
• The company recently reported a wider-than-expected loss, posting EPS of -$0.28 versus estimates of -$0.25, while revenue came in slightly below expectations. Insider selling and mixed institutional activity were also noted.

Archer Aviation Inc. (NYSE:ACHR - Get Free Report) shares were up 8.8% during mid-day trading on Monday . The stock traded as high as $5.62 and last traded at $5.5250. Approximately 57,167,694 shares changed hands during trading, an increase of 50% from the average daily volume of 38,206,152 shares. The stock had previously closed at $5.08.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on ACHR shares. Canaccord Genuity Group lowered their target price on shares of Archer Aviation from $13.00 to $12.00 and set a "buy" rating on the stock in a research note on Tuesday, May 12th. Needham & Company LLC lowered 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 note on Tuesday, March 3rd. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Archer Aviation in a research note on Monday, April 20th. Five 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. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $11.83.

Archer Aviation Stock Up 8.8%

The stock has a market cap of $4.20 billion, a PE ratio of -5.02 and a beta of 3.14. 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 50-day moving average price is $5.97 and its 200 day moving average price is $6.89.

Archer Aviation (NYSE:ACHR - Get Free Report) last released its quarterly earnings results on Monday, May 11th. The company reported ($0.28) EPS for the quarter, missing the consensus estimate of ($0.25) by ($0.03). The firm had revenue of $1.60 million for the quarter, compared to analysts' expectations of $1.66 million. During the same period in the prior year, the firm earned ($0.17) earnings per share. As a group, analysts forecast that Archer Aviation Inc. will post -1.47 EPS for the current fiscal year.

Insider Buying and Selling at Archer Aviation

In other news, CAO Harsh Rungta sold 12,414 shares of the company's 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 owned 87,210 shares of the company's stock, valued at $518,899.50. This represents a 12.46% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Eric Lentell sold 48,169 shares of the company's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $5.95, for a total transaction of $286,605.55. Following the sale, the insider directly owned 141,084 shares of the company's stock, valued at $839,449.80. The trade was a 25.45% 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. Insiders sold 246,989 shares of company stock worth $1,478,902 over the last 90 days. 5.55% of the stock is owned by company insiders.

Institutional Investors Weigh In On Archer Aviation

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its holdings in Archer Aviation by 4.4% in the 4th quarter. Vanguard Group Inc. now owns 54,676,158 shares of the company's stock worth $411,165,000 after acquiring an additional 2,312,899 shares in the last quarter. ARK Investment Management LLC increased its holdings in Archer Aviation by 12.4% in the 4th quarter. ARK Investment Management LLC now owns 35,170,701 shares of the company's stock worth $264,484,000 after acquiring an additional 3,869,252 shares in the last quarter. State Street Corp increased its holdings in Archer Aviation by 11.2% in the 4th quarter. State Street Corp now owns 32,773,136 shares of the company's stock worth $246,454,000 after acquiring an additional 3,293,130 shares in the last quarter. Morgan Stanley increased its holdings in Archer Aviation by 21.6% in the 4th quarter. Morgan Stanley now owns 15,717,522 shares of the company's stock worth $118,196,000 after acquiring an additional 2,796,488 shares in the last quarter. Finally, Geode Capital Management LLC increased its holdings in Archer Aviation by 14.9% in the 4th quarter. Geode Capital Management LLC now owns 14,385,647 shares of the company's stock worth $108,197,000 after acquiring an additional 1,867,648 shares in the last quarter. 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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