Archer Aviation (NYSE:ACHR) Shares Down 4.9% - Should You Sell?

Key Points

• Archer Aviation shares fell 4.9% to about $4.06, well below the 50-day and 200-day moving averages near $5.55. Trading volume was 49% below the stock’s average daily volume.
• Analyst sentiment remains broadly positive, with six Buy ratings, two Holds and one Sell; the consensus is “Moderate Buy” with an average price target of $11.00.
• Archer met quarterly EPS expectations with a loss of $0.34 per share and exceeded revenue expectations, reporting $5 million versus $1.94 million expected. However, insiders sold 176,657 shares worth about $1.12 million over the past 90 days.

Archer Aviation Inc. (NYSE:ACHR - Get Free Report)'s share price fell 4.9% during mid-day trading on Friday. The company traded as low as $4.01 and last traded at $4.0620. 18,268,647 shares were traded during mid-day trading, a decline of 49% from the average daily volume of 35,641,137 shares. The stock had previously closed at $4.27.

Analyst Upgrades and Downgrades

ACHR has been the topic of a number of analyst reports. UBS Group restated an "overweight" rating on shares of Archer Aviation in a research note on Tuesday, August 11th. Weiss Ratings reissued a "sell (d-)" rating on shares of Archer Aviation in a research report on Thursday. Cantor Fitzgerald restated an "overweight" rating and set a $11.00 target price on shares of Archer Aviation in a research note on Tuesday, August 11th. HC Wainwright restated a "buy" rating on shares of Archer Aviation in a research note on Tuesday, August 11th. Finally, Needham & Company LLC reaffirmed a "buy" rating and issued a $9.00 price target on shares of Archer Aviation in a report on Tuesday, August 11th. Six equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $11.00.

Archer Aviation Trading Down 4.9%

The company has a debt-to-equity ratio of 0.06, a current ratio of 10.21 and a quick ratio of 10.21. The firm has a market capitalization of $3.13 billion, a PE ratio of -3.76 and a beta of 3.27. The business's 50-day moving average price is $5.56 and its 200-day moving average price is $5.54.

Archer Aviation (NYSE:ACHR - Get Free Report) last issued its quarterly earnings data on Monday, August 10th. The company reported ($0.34) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.34). The business had revenue of $5.00 million for the quarter, compared to analysts' expectations of $1.94 million. As a group, analysts expect that Archer Aviation Inc. will post -1.37 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Archer Aviation news, insider Eric Lentell sold 100,000 shares of the stock in a transaction that occurred on 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 sale, the insider directly owned 85,011 shares of the company's stock, valued at approximately $536,419.41. This trade represents a 54.05% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Harsh Rungta sold 13,880 shares of Archer Aviation stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $6.41, for a total value of $88,970.80. Following the completion of the transaction, the chief accounting officer owned 110,847 shares in the company, valued at $710,529.27. This trade represents a 11.13% decrease in their ownership of the stock. 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. In the last ninety days, insiders sold 176,657 shares of company stock valued at $1,122,371. 5.55% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Opal Wealth Advisors LLC purchased a new stake in Archer Aviation in the 3rd quarter valued at approximately $55,000. Cornerstone Enterprises LLC raised its position in Archer Aviation by 30.9% in the third quarter. Cornerstone Enterprises LLC now owns 18,616 shares of the company's stock worth $93,000 after acquiring an additional 4,396 shares in the last quarter. HBW Advisory Services LLC purchased a new position in Archer Aviation in the third quarter worth $59,000. Focus Financial Network Inc. lifted its holdings in Archer Aviation by 21.6% in the third quarter. Focus Financial Network Inc. now owns 20,540 shares of the company's stock valued at $102,000 after acquiring an additional 3,650 shares during the period. Finally, Bouvel Investment Partners LLC acquired a new stake in Archer Aviation in the third quarter valued at $50,000. 59.34% of the stock is currently owned by institutional investors and hedge funds.

About Archer Aviation

Archer Aviation Inc is an aerospace company developing electric vertical takeoff and landing (eVTOL) aircraft for urban air mobility. Its goal is to provide quieter, lower-emission transportation for short passenger trips, including airport transfers and travel between urban and suburban locations.

The company's primary aircraft is Midnight, a piloted, four-passenger eVTOL aircraft designed for frequent short-distance flights. Archer has also developed Maker, a smaller technology demonstrator used to test its electric propulsion, flight-control and other aircraft systems.

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