Archer Aviation (NYSE:ACHR) Shares Down 2.5% - Here's Why

Key Points

• Archer Aviation shares fell 2.5% to $5.78 in Friday trading, with volume down 39% from the average session.
• Analysts’ average rating is “Hold”, with an average price target of $11.50; ratings range from “Sell” to “Buy,” while individual targets span $9 to $18.
• The company met quarterly EPS expectations at a loss of $0.34 per share and exceeded revenue estimates with $5 million in revenue. Insiders have sold 180,411 shares worth about $1.14 million over the past 90 days.

Archer Aviation Inc. (NYSE:ACHR - Get Free Report)'s stock price traded down 2.5% during trading on Friday . The company traded as low as $5.68 and last traded at $5.78. Approximately 23,163,342 shares were traded during mid-day trading, a decline of 39% from the average session volume of 37,961,645 shares. The stock had previously closed at $5.93.

Analyst Upgrades and Downgrades

ACHR has been the subject of several recent research reports. Canaccord Genuity Group lowered their price objective on Archer Aviation from $13.00 to $12.00 and set a "buy" rating for the company in a research report on Tuesday, May 12th. Cantor Fitzgerald reiterated an "overweight" rating and set a $11.00 target price on shares of Archer Aviation in a report on Tuesday, August 11th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Archer Aviation in a research note on Friday, July 17th. Wells Fargo & Company set a $18.00 target price on Archer Aviation in a research note on Tuesday, August 11th. Finally, Needham & Company LLC restated a "buy" rating and set a $9.00 price objective on shares of Archer Aviation in a research note on Tuesday, August 11th. Five investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Archer Aviation presently has an average rating of "Hold" and an average target price of $11.50.

Archer Aviation Price Performance

The company has a quick ratio of 10.21, a current ratio of 10.21 and a debt-to-equity ratio of 0.06. The stock has a market cap of $4.45 billion, a P/E ratio of -5.35 and a beta of 3.20. The firm has a 50 day moving average price of $5.34 and a 200 day moving average price of $5.85.

Archer Aviation (NYSE:ACHR - Get Free Report) last posted its quarterly earnings results on Monday, August 10th. The company reported ($0.34) EPS for the quarter, meeting analysts' consensus estimates of ($0.34). The business had revenue of $5.00 million for the quarter, compared to the consensus estimate of $1.94 million. On average, analysts forecast that Archer Aviation Inc. will post -1.37 EPS for the current fiscal year.

Insider Activity at Archer Aviation

In other news, CAO Harsh Rungta sold 13,880 shares of the company's stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $6.41, for a total transaction of $88,970.80. Following the transaction, the chief accounting officer owned 110,847 shares of the company's stock, valued at approximately $710,529.27. This represents a 11.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Eric Lentell sold 100,000 shares of the company's stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $6.31, for a total transaction of $631,000.00. Following the completion of the transaction, the insider owned 85,011 shares in the company, valued at $536,419.41. This represents a 54.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 180,411 shares of company stock worth $1,141,141. Company insiders own 5.55% of the company's stock.

Institutional Trading of Archer Aviation

Hedge funds and other institutional investors have recently made changes to their positions in the business. Gould Capital LLC increased its holdings in shares of 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 in the last quarter. Strs Ohio purchased a new stake in shares of Archer Aviation in the first quarter valued at approximately $27,000. Caitong International Asset Management Co. Ltd raised its stake in shares of Archer Aviation by 840.1% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 3,732 shares of the company's stock worth $28,000 after buying an additional 3,335 shares during the period. Modus Advisors LLC acquired a new stake in Archer Aviation in the 4th quarter valued at $29,000. Finally, Basepoint Wealth LLC acquired a new stake in Archer Aviation in the 4th quarter valued at $32,000. Institutional investors and hedge funds 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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