Archer Aviation (NYSE:ACHR) Stock Price Down 4.1% - Should You Sell?

Key Points

• Archer Aviation shares fell 4.1% to $4.20 in mid-day trading, below both their 50-day ($5.10) and 200-day ($5.87) moving averages.
• Analyst sentiment remains broadly positive: six analysts rate the stock Buy, two Hold, and one Sell, producing a “Moderate Buy” consensus and an average price target of $11.00.
• The company reported a quarterly loss of $0.34 per share, in line with estimates, while revenue of $5.0 million exceeded expectations. Insiders have sold shares recently, though institutional investors own 59.34% of the stock.

Archer Aviation Inc. (NYSE:ACHR - Get Free Report) dropped 4.1% during mid-day trading on Friday. The company traded as low as $4.07 and last traded at $4.20. 18,874,784 shares changed hands during mid-day trading, a decline of 46% from the average session volume of 34,853,922 shares. The stock had previously closed at $4.38.

Analyst Ratings Changes

ACHR has been the subject of several recent analyst reports. Needham & Company LLC reiterated a "buy" rating and issued a $9.00 price objective on shares of Archer Aviation in a research note on Tuesday, August 11th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Archer Aviation in a research report on Thursday, October 15th. UBS Group restated an "overweight" rating on shares of Archer Aviation in a report on Tuesday, August 11th. HC Wainwright restated a "buy" rating on shares of Archer Aviation in a report on Tuesday, August 11th. Finally, Barclays upgraded shares of Archer Aviation from an "equal weight" rating to an "overweight" rating and upped their price target for the company from $4.50 to $8.00 in a report on Friday, October 9th. Six equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $11.00.

Archer Aviation Price Performance

The business has a fifty day moving average price of $5.10 and a 200 day moving average price of $5.87. The company has a debt-to-equity ratio of 0.06, a quick ratio of 10.21 and a current ratio of 10.21. The company has a market cap of $3.23 billion, a price-to-earnings ratio of -3.89 and a beta of 3.27.

Archer Aviation (NYSE:ACHR - Get Free Report) last issued 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 business had revenue of $5.00 million for the quarter, compared to analyst estimates of $1.94 million. As a group, research analysts anticipate that Archer Aviation Inc. will post -1.37 earnings per share for the current year.

Insider Buying and Selling at Archer Aviation

In related news, CFO Priya Gupta sold 10,015 shares of the business's stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $6.41, for a total transaction of $64,196.15. Following the transaction, the chief financial officer owned 202,784 shares in the company, valued at $1,299,845.44. The trade was a 4.71% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through 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 company'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 transaction of $88,970.80. Following the completion of the transaction, the chief accounting officer owned 110,847 shares in the company, 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 sold 176,657 shares of company stock valued at $1,122,371 in the last 90 days. Insiders own 5.55% of the company's stock.

Institutional Trading of Archer Aviation

Several institutional investors and hedge funds have recently modified their holdings of the stock. Sumitomo Mitsui Trust Group Inc. grew its stake in Archer Aviation by 7.3% in the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 8,072,347 shares of the company's stock valued at $40,120,000 after buying an additional 549,998 shares in the last quarter. Renaissance Technologies LLC raised its holdings 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 during the last quarter. Bank of New York Mellon Corp bought a new stake in shares of Archer Aviation during the 2nd quarter valued at about $10,190,000. Bank of America Corp DE lifted its position in shares of Archer Aviation by 33.2% in 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, Swiss National Bank raised its position in shares of Archer Aviation by 0.4% during the 1st quarter. Swiss National Bank now owns 1,221,700 shares of the company's stock valued at $6,316,000 after buying an additional 4,400 shares in the last quarter. Institutional investors own 59.34% of the company's stock.

Archer Aviation Company Profile

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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