Archer Aviation (NYSE:ACHR) Shares Gap Up After Analyst Upgrade

Key Points

• Archer Aviation shares jumped 5% after Barclays upgraded the stock to “overweight” from “equal weight” and raised its price target to $8 from $4.50. Shares opened at $5.02, versus a prior close of $4.72.
• Analyst sentiment is broadly positive, with six “buy” ratings, two “hold” ratings and one “sell” rating; MarketBeat lists a consensus rating of “Moderate Buy” and an average price target of $11.
• Archer reported quarterly revenue of $5 million and an adjusted loss of $0.34 per share, matching expectations on earnings while exceeding the $1.94 million revenue estimate. Insiders have sold 176,657 shares worth approximately $1.12 million over the past 90 days.

Shares of Archer Aviation Inc. (NYSE:ACHR - Get Free Report) gapped up prior to trading on Friday after Barclays upgraded the stock from an equal weight rating to an overweight rating. The stock had previously closed at $4.72, but opened at $5.02. Barclays now has a $8.00 price target on the stock, up from their previous price target of $4.50. Archer Aviation shares last traded at $4.9850, with a volume of 7,892,782 shares trading hands.

Several other brokerages also recently commented on ACHR. Weiss Ratings reissued a "sell (d-)" rating on shares of Archer Aviation in a report on Friday, July 17th. Wells Fargo & Company set a $18.00 price target on shares of Archer Aviation in a report on Tuesday, August 11th. Cantor Fitzgerald reiterated an "overweight" rating and issued a $11.00 price objective on shares of Archer Aviation in a research report on Tuesday, August 11th. HC Wainwright reissued a "buy" rating on shares of Archer Aviation in a research note on Tuesday, August 11th. Finally, Needham & Company LLC restated a "buy" rating and set a $9.00 target price on shares of Archer Aviation in a research 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 company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $11.00.

Insider Buying and Selling at Archer Aviation

In related news, insider Eric Lentell sold 100,000 shares of the stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $6.31, for a total transaction of $631,000.00. Following the transaction, the insider 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 document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Harsh Rungta sold 13,880 shares of the firm'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 value of $88,970.80. Following the transaction, the chief accounting officer owned 110,847 shares in the company, valued at approximately $710,529.27. The trade was 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. Insiders have sold 176,657 shares of company stock worth $1,122,371 over the last 90 days. Corporate insiders own 5.55% of the company's stock.

Institutional Investors Weigh In On Archer Aviation

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. GAMMA Investing LLC lifted its stake in shares of Archer Aviation by 189.3% in the third quarter. GAMMA Investing LLC now owns 6,272 shares of the company's stock worth $31,000 after buying an additional 4,104 shares in the last quarter. Green Alpha Advisors LLC grew its holdings in Archer Aviation by 41.5% during the 3rd quarter. Green Alpha Advisors LLC now owns 172,992 shares of the company's stock valued at $860,000 after buying an additional 50,702 shares in the last quarter. Farther Finance Advisors LLC raised its position in shares of Archer Aviation by 522.9% during the 3rd quarter. Farther Finance Advisors LLC now owns 136,434 shares of the company's stock valued at $678,000 after buying an additional 114,531 shares in the last quarter. Decision Investments Inc. bought a new stake in Archer Aviation in the third quarter worth $209,000. Finally, MassMutual Private Wealth & Trust FSB raised its holdings in shares of Archer Aviation by 157.7% in the third quarter. MassMutual Private Wealth & Trust FSB now owns 9,529 shares of the company's stock worth $47,000 after buying an additional 5,832 shares during the period. Hedge funds and other institutional investors own 59.34% of the company's stock.

Archer Aviation Trading Up 5.0%

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 stock's 50-day moving average price is $5.61 and its 200 day moving average price is $5.58. The firm has a market capitalization of $3.82 billion, a PE ratio of -4.59 and a beta of 3.27.

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

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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