Archer Aviation Sees Unusually Large Options Volume (NYSE:ACHR)

Key Points

• Archer Aviation saw unusually heavy options activity on Friday, with traders buying 115,409 call options — about 122% above the average volume.
• The stock rose to $6.35 in midday trading on above-average volume, but the company is still well below its 52-week high of $14.62 and recently reported a quarterly EPS miss.
• Analysts remain mixed but lean positive overall: Archer has a Moderate Buy consensus rating and a consensus price target of $11.83, even after some recent target cuts.

Archer Aviation Inc. (NYSE:ACHR - Get Free Report) was the recipient of unusually large options trading activity on Friday. Stock traders acquired 115,409 call options on the company. This represents an increase of approximately 122% compared to the average volume of 51,882 call options.

Archer Aviation Price Performance

ACHR traded up $0.23 during midday trading on Friday, hitting $6.35. 43,645,492 shares of the company traded hands, compared to its average volume of 35,636,723. 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 capitalization of $4.72 billion, a price-to-earnings ratio of -5.75 and a beta of 3.13. Archer Aviation has a 52-week low of $4.80 and a 52-week high of $14.62. The business has a 50 day simple moving average of $5.85 and a two-hundred day simple moving average of $7.14.

Archer Aviation (NYSE:ACHR - Get Free Report) last posted its quarterly earnings data on Monday, May 11th. The company reported ($0.28) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.25) by ($0.03). The business had revenue of $1.60 million for the quarter, compared to analyst estimates of $1.66 million. During the same quarter last year, the firm posted ($0.17) earnings per share. On average, equities analysts forecast that Archer Aviation will post -1.51 earnings per share for the current fiscal year.

Insider Transactions at Archer Aviation

In related news, insider Eric Lentell sold 48,169 shares of the stock in a transaction on 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 approximately $839,449.80. This represents a 25.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Harsh Rungta sold 12,414 shares of the stock in a transaction on Monday, May 18th. The stock was 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 in the company, valued at $518,899.50. This trade represents a 12.46% 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. Over the last three months, insiders have sold 502,739 shares of company stock valued at $3,124,236. 7.65% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Archer Aviation

Several hedge funds and other institutional investors have recently modified their holdings of the business. Bank of Jackson Hole Trust lifted its stake in shares of Archer Aviation by 45.9% in the third quarter. Bank of Jackson Hole Trust now owns 3,136 shares of the company's stock worth $30,000 after buying an additional 986 shares in the last quarter. Prime Capital Investment Advisors LLC lifted its stake in shares of Archer Aviation by 2.5% in the third quarter. Prime Capital Investment Advisors LLC now owns 46,262 shares of the company's stock worth $443,000 after buying an additional 1,107 shares in the last quarter. Farther Finance Advisors LLC lifted its stake in shares of Archer Aviation by 7.0% in the fourth quarter. Farther Finance Advisors LLC now owns 18,659 shares of the company's stock worth $140,000 after buying an additional 1,220 shares in the last quarter. HighPoint Advisor Group LLC lifted its stake in shares of Archer Aviation by 3.6% in the third quarter. HighPoint Advisor Group LLC now owns 35,919 shares of the company's stock worth $344,000 after buying an additional 1,237 shares in the last quarter. Finally, Clear Creek Financial Management LLC lifted its stake in shares of Archer Aviation by 2.9% in the third quarter. Clear Creek Financial Management LLC now owns 44,084 shares of the company's stock worth $422,000 after buying an additional 1,254 shares in the last quarter. 59.34% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on the stock. Needham & Company LLC lowered their price target on shares of Archer Aviation from $10.00 to $9.00 and set a "buy" rating on the stock in a report on Tuesday, March 3rd. Weiss Ratings reissued a "sell (d-)" rating on shares of Archer Aviation in a report on Monday, April 20th. Finally, Canaccord Genuity Group lowered their price target on shares of Archer Aviation from $13.00 to $12.00 and set a "buy" rating on the stock in a report on Tuesday, May 12th. Five investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $11.83.

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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