Archer Aviation (NYSE:ACHR) Stock Falls 4.1% – Here’s Why

Shares of Archer Aviation Inc. (NYSE:ACHR) were down 4.1% during trading on Friday. The stock traded as low as $4.07 and last traded at $4.20. Approximately 18,874,784 shares changed hands during trading, a decline of 46% from the average daily volume of 34,853,922 shares. The stock had previously closed at $4.38.

Wall Street Analyst Weigh In

Several brokerages recently commented on ACHR. Wells Fargo & Company set a $18.00 price target on shares of Archer Aviation in a report on Tuesday, August 11th. Barclays raised shares of Archer Aviation from an “equal weight” rating to an “overweight” rating and boosted their price objective for the company from $4.50 to $8.00 in a research note on Friday, October 9th. UBS Group restated an “overweight” rating on shares of Archer Aviation in a research report on Tuesday, August 11th. Cantor Fitzgerald restated an “overweight” rating and set a $11.00 target price on shares of Archer Aviation in a report on Tuesday, August 11th. Finally, Needham & Company LLC reissued a “buy” rating and set a $9.00 target price on shares of Archer Aviation in a report on Tuesday, August 11th. Six equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Archer Aviation presently has a consensus rating of “Moderate Buy” and an average target price of $11.00.

Archer Aviation Stock Down 4.1%

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 business has a 50 day moving average of $5.10 and a 200 day moving average of $5.87. The firm has a market capitalization of $3.23 billion, a price-to-earnings ratio of -3.89 and a beta of 3.27.

Archer Aviation (NYSE:ACHR) last released its quarterly earnings results on Monday, August 10th. The company reported ($0.34) EPS for the quarter, hitting analysts’ consensus estimates of ($0.34). The business had revenue of $5.00 million for the quarter, compared to the consensus estimate of $1.94 million. On average, equities analysts anticipate that Archer Aviation Inc. will post -1.37 EPS for the current year.

Insider Activity at Archer Aviation

In other news, CAO Harsh Rungta sold 13,880 shares of Archer Aviation stock in a transaction that occurred on Monday, August 17th. The shares were 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 in the company, valued at $710,529.27. This trade represents a 11.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 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 the company’s stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $6.31, for a total value of $631,000.00. Following the sale, the insider owned 85,011 shares in the company, valued at $536,419.41. The trade was 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. In the last quarter, insiders have sold 176,657 shares of company stock valued at $1,122,371. 5.55% of the stock is owned by insiders.

Institutional Trading of Archer Aviation

Hedge funds have recently added to or reduced their stakes in the stock. Renaissance Technologies LLC increased its position in Archer Aviation by 703.3% in the 1st quarter. Renaissance Technologies LLC now owns 2,514,300 shares of the company’s stock valued at $12,999,000 after acquiring an additional 2,201,300 shares during the period. Bank of New York Mellon Corp bought a new position in shares of Archer Aviation during the second quarter valued at about $10,190,000. Sumitomo Mitsui Trust Group Inc. raised its position 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 worth $40,120,000 after acquiring an additional 549,998 shares during the period. Bank of America Corp DE increased its stake 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 worth $11,048,000 after purchasing an additional 532,762 shares in the last quarter. Finally, Hsbc Holdings PLC lifted its stake in Archer Aviation by 476.7% in the 1st 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. Institutional investors and hedge funds 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.