Archer Aviation (NYSE:ACHR) Stock Falls 7% - Should You Sell?

Archer Aviation Inc. (NYSE:ACHR - Get Free Report)'s stock price fell 7% during trading on Friday. The stock traded as low as $4.02 and last traded at $4.0250. 19,775,008 shares traded hands during mid-day trading, a decline of 43% from the average session volume of 34,474,199 shares. The stock had previously closed at $4.33.

Latest Archer Aviation News

Here's some of the latest news about ACHR:

• Positive Sentiment: A Formula One partnership could raise Archer’s visibility, while ARK Invest’s reported share purchases signal interest from a prominent investor. Neither development guarantees near-term revenue. Article: Archer Aviation partners with Formula One Article: ARK Invest buys Archer shares
• Neutral Sentiment: Archer has made progress on its Midnight aircraft and reached an FAA milestone, but certification and commercialization still involve further hurdles. Strong liquidity provides a financial cushion as it works toward those goals. Article: Archer Aviation’s FAA certificate is a milestone, but it isn’t the final one
• Negative Sentiment: Third-quarter EPS missed estimates by a penny, despite revenue exceeding forecasts. Analysts’ subsequent price-target reductions weighed on sentiment; Canaccord maintained a Buy rating, illustrating mixed views. Archer shares are also down sharply over the past year. Article: Archer Aviation falls following two analyst ratings

Analysts Set New Price Targets

A number of equities research analysts have weighed in on ACHR shares. Cantor Fitzgerald lowered their price objective on Archer Aviation from $11.00 to $10.00 and set an "overweight" rating for the company in a research note on Tuesday. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Archer Aviation in a research report on Thursday, October 15th. Canaccord Genuity Group reduced their target price on Archer Aviation from $12.00 to $9.50 and set a "buy" rating for the company in a research note on Wednesday. Barclays upgraded Archer Aviation from an "equal weight" rating to an "overweight" rating and increased their target price for the company from $4.50 to $8.00 in a research note on Friday, October 9th. Finally, Needham & Company LLC decreased their price target on shares of Archer Aviation from $9.00 to $7.00 and set a "buy" rating for the company in a research report on Tuesday. Six equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Archer Aviation currently has an average rating of "Moderate Buy" and a consensus target price of $10.58.

Archer Aviation Trading Down 7.0%

The company has a debt-to-equity ratio of 0.10, a quick ratio of 10.21 and a current ratio of 8.02. The business has a fifty day simple moving average of $4.79 and a 200 day simple moving average of $5.65. The company has a market cap of $3.10 billion, a P/E ratio of -3.27 and a beta of 3.59.

Archer Aviation (NYSE:ACHR - Get Free Report) last issued its earnings results on Monday, November 9th. The company reported ($0.35) EPS for the quarter, missing the consensus estimate of ($0.34) by ($0.01). Archer Aviation had a negative return on equity of 46.62% and a negative net margin of 7,869.17%. The firm had revenue of $5.10 million during the quarter, compared to analyst estimates of $3.57 million. During the same quarter in the previous year, the business posted ($0.20) EPS. Analysts anticipate that Archer Aviation Inc. will post -1.37 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CFO Priya Gupta sold 10,015 shares of the firm's stock in a transaction on Monday, August 17th. The stock was sold at an average price of $6.41, for a total transaction of $64,196.15. Following the transaction, the chief financial officer directly owned 202,784 shares in the company, valued at $1,299,845.44. This trade represents a 4.71% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 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 Archer Aviation stock in a transaction 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 transaction, the insider directly owned 85,011 shares of the company's stock, valued at approximately $536,419.41. This represents a 54.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 176,657 shares of company stock worth $1,122,371 over the last ninety days. 5.55% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of ACHR. Voya Investment Management LLC grew its position in shares of Archer Aviation by 48.2% during the 3rd quarter. Voya Investment Management LLC now owns 10,118,847 shares of the company's stock valued at $50,291,000 after buying an additional 3,289,910 shares during the last quarter. Renaissance Technologies LLC lifted its holdings in Archer Aviation by 703.3% in the first 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 during the last quarter. Bank of New York Mellon Corp acquired a new position in Archer Aviation in the second quarter valued at approximately $10,190,000. Public Sector Pension Investment Board acquired a new position in Archer Aviation in the third quarter valued at approximately $2,803,000. Finally, Sumitomo Mitsui Trust Group Inc. boosted its stake in Archer Aviation by 7.3% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 8,072,347 shares of the company's stock valued at $40,120,000 after acquiring an additional 549,998 shares during the period. 59.34% of the stock is currently owned by institutional investors.

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.

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