Archer Aviation (NYSE:ACHR) Stock Jumps 3% - Still a Buy?

Key Points

• Archer Aviation shares rose 3% to about $3.92, although trading volume was 44% below the stock’s average daily volume.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $11.00; however, one analyst rates the stock a sell.
• The company matched quarterly loss expectations at $0.34 per share and exceeded revenue estimates, but it remains unprofitable. Insiders have sold shares recently, while institutional ownership stands at 59.34%.

Archer Aviation Inc. (NYSE:ACHR - Get Free Report)'s share price shot up 3% during trading on Friday. The company traded as high as $3.96 and last traded at $3.9150. 19,878,531 shares changed hands during mid-day trading, a decline of 44% from the average daily volume of 35,196,637 shares. The stock had previously closed at $3.80.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on ACHR. UBS Group reiterated an "overweight" rating on shares of Archer Aviation in a research report on Tuesday, August 11th. HC Wainwright restated a "buy" rating on shares of Archer Aviation in a report on Tuesday, August 11th. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $11.00 target price on shares of Archer Aviation in a research report on Tuesday, August 11th. Wells Fargo & Company set a $18.00 price target on Archer Aviation in a report on Tuesday, August 11th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Archer Aviation in a research report on Thursday, October 15th. Six equities research analysts have rated the stock with a Buy rating, two have given 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 Stock Up 3.0%

The business's 50 day simple moving average is $5.31 and its 200-day simple moving average is $5.50. The company has a market cap of $3.01 billion, a price-to-earnings ratio of -3.62 and a beta of 3.27. The company has a debt-to-equity ratio of 0.06, a quick ratio of 10.21 and a current ratio of 10.21.

Archer Aviation (NYSE:ACHR - Get Free Report) last posted its quarterly earnings results on Monday, August 10th. The company reported ($0.34) earnings per share for the quarter, hitting analysts' consensus estimates of ($0.34). The company had revenue of $5.00 million during the quarter, compared to analyst estimates of $1.94 million. Sell-side analysts expect that Archer Aviation Inc. will post -1.37 earnings per share for the current year.

Insider Buying and Selling at Archer Aviation

In other Archer Aviation news, CFO Priya Gupta sold 10,015 shares of the company's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $6.41, for a total value of $64,196.15. Following the transaction, the chief financial officer directly owned 202,784 shares of the company's stock, valued at $1,299,845.44. This represents a 4.71% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Harsh Rungta sold 13,880 shares of the firm's 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 sale, the chief accounting officer directly owned 110,847 shares of the company's stock, valued at $710,529.27. This trade represents a 11.13% decrease in their ownership of the stock. 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 176,657 shares of company stock worth $1,122,371 over the last 90 days. 5.55% of the stock is currently owned by corporate insiders.

Institutional Trading of Archer Aviation

Several large investors have recently added to or reduced their stakes in ACHR. Renaissance Technologies LLC increased its stake in shares of Archer Aviation by 703.3% during the 1st quarter. Renaissance Technologies LLC now owns 2,514,300 shares of the company's stock worth $12,999,000 after purchasing an additional 2,201,300 shares during the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of Archer Aviation in the 2nd quarter valued at $10,190,000. Bank of America Corp DE lifted its stake in shares of Archer Aviation by 33.2% in the 1st quarter. Bank of America Corp DE now owns 2,136,942 shares of the company's stock valued at $11,048,000 after purchasing an additional 532,762 shares during the last quarter. Hsbc Holdings PLC boosted its holdings in Archer Aviation by 476.7% in the first quarter. Hsbc Holdings PLC now owns 568,861 shares of the company's stock worth $2,928,000 after purchasing an additional 470,216 shares in the last quarter. Finally, Odyssean LLC boosted its holdings in Archer Aviation by 707.0% in the second quarter. Odyssean LLC now owns 260,940 shares of the company's stock worth $1,234,000 after purchasing an additional 228,606 shares in the last quarter. 59.34% of the stock is owned by institutional investors.

About Archer Aviation

Archer Aviation Inc is an aerospace company developing electric vertical takeoff and landing (eVTOL) aircraft for urban air mobility. Its aircraft are designed to operate like helicopters for takeoff and landing while using distributed electric propulsion for quieter, lower-emission regional transportation.

The company's primary aircraft program is Midnight, a piloted, four-passenger eVTOL aircraft intended for short urban and regional trips. Archer has also developed Maker, a technology demonstrator used to test its electric propulsion, flight-control and other aircraft systems.

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