Archer Aviation (NYSE:ACHR) Shares Up 8.9% - Still a Buy?

Key Points

• Archer Aviation shares rose 8.9% in midday trading to about $4.84, with trading volume 11% above its average.
• Analysts have a “Moderate Buy” consensus and an average price target of $11.50; six rate the stock Buy, one Hold, and one Sell.
• Latest quarterly results matched expectations at a loss of $0.34 per share, while $5 million in revenue exceeded analysts’ $1.94 million forecast.

Archer Aviation Inc. (NYSE:ACHR - Get Free Report) shot up 8.9% during mid-day trading on Monday. The company traded as high as $4.98 and last traded at $4.8350. 38,413,775 shares were traded during mid-day trading, an increase of 11% from the average session volume of 34,590,707 shares. The stock had previously closed at $4.44.

Analyst Ratings Changes

ACHR has been the topic of several research analyst reports. Wells Fargo & Company set a $18.00 price target on shares of Archer Aviation in a research note on Tuesday, August 11th. Weiss Ratings restated a "sell (d-)" rating on shares of Archer Aviation in a research report on Thursday, October 15th. Barclays raised Archer Aviation from an "equal weight" rating to an "overweight" rating and lifted their target price for the stock from $4.50 to $8.00 in a report on Friday, October 9th. UBS Group reaffirmed an "overweight" rating on shares of Archer Aviation in a report on Tuesday, August 11th. Finally, Needham & Company LLC reiterated a "buy" rating and issued a $9.00 target price on shares of Archer Aviation in a research report on Tuesday, August 11th. Six investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Archer Aviation presently has a consensus rating of "Moderate Buy" and a consensus price target of $11.50.

Archer Aviation Stock Performance

The business's fifty day moving average is $4.87 and its two-hundred day moving average is $5.73. The stock has a market capitalization of $3.72 billion, a PE ratio of -4.48 and a beta of 3.59. The company has a quick ratio of 10.21, a current ratio of 10.21 and a debt-to-equity ratio of 0.06.

Archer Aviation (NYSE:ACHR - Get Free Report) last released its quarterly earnings results on Monday, August 10th. The company reported ($0.34) earnings per share (EPS) for the quarter, meeting analysts' consensus estimates 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, research analysts anticipate that Archer Aviation Inc. will post -1.37 EPS for the current fiscal year.

Insider Transactions at Archer Aviation

In related news, insider Eric Lentell sold 100,000 shares of the stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $6.31, for a total value of $631,000.00. Following the completion of 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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 dated Monday, August 17th. The stock was 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 of the company's stock, valued at approximately $710,529.27. This represents a 11.13% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 176,657 shares of company stock worth $1,122,371 in the last three months. Insiders own 5.55% of the company's stock.

Hedge Funds Weigh In On Archer Aviation

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Renaissance Technologies LLC grew its stake in Archer Aviation by 703.3% in the 1st quarter. Renaissance Technologies LLC now owns 2,514,300 shares of the company's stock worth $12,999,000 after acquiring an additional 2,201,300 shares in the last quarter. Bank of New York Mellon Corp purchased a new position in shares of Archer Aviation during the second quarter worth approximately $10,190,000. Sumitomo Mitsui Trust Group Inc. increased its position in shares of Archer Aviation by 7.3% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 8,072,347 shares of the company's stock worth $40,120,000 after acquiring an additional 549,998 shares during the period. Bank of America Corp DE raised its stake in shares of Archer Aviation by 33.2% during the first quarter. Bank of America Corp DE now owns 2,136,942 shares of the company's stock valued at $11,048,000 after acquiring an additional 532,762 shares in the last quarter. Finally, Hsbc Holdings PLC raised its stake in shares of Archer Aviation by 476.7% during the first quarter. Hsbc Holdings PLC now owns 568,861 shares of the company's stock valued at $2,928,000 after acquiring an additional 470,216 shares in the last quarter. Hedge funds and other institutional investors own 59.34% of the company's stock.

Archer Aviation Company Profile

Archer Aviation is an aerospace company based in San Jose, California, that develops electric vertical takeoff and landing (eVTOL) aircraft and related services. Its aircraft are designed for short passenger trips, including potential air taxi routes between urban areas and nearby airports.

The company's primary aircraft is Midnight, a piloted eVTOL designed to carry four passengers and a pilot. Archer is working to bring the aircraft to commercial service, subject to regulatory approvals, and is pursuing operations in the United States and international markets.

Founded in 2018, Archer was co-founded by Adam Goldstein, who serves as its chief executive officer, and Brett Adcock.

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