Archer Aviation (NYSE:ACHR) Stock Falls 2.3% Following Weak Earnings

Archer Aviation Inc. (NYSE:ACHR)’s stock price dropped 2.3% during trading on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $4.34 and last traded at $4.70. Approximately 40,868,226 shares were traded during trading, an increase of 18% from the average session volume of 34,614,121 shares. The stock had previously closed at $4.81.

The company reported ($0.35) earnings per share for the quarter, missing the consensus estimate of ($0.34) by ($0.01). The company had revenue of $5.10 million during the quarter, compared to the consensus estimate of $3.57 million. During the same quarter in the previous year, the firm earned ($0.20) EPS.

Key Stories Impacting Archer Aviation

Here are the key news stories impacting Archer Aviation this week:

• Positive Sentiment: Archer received an FAA market survey certificate for its Midnight aircraft, enabling piloted operations in Los Angeles. The company says this supports its LA launch plans and its role as the city’s air-taxi operator for the 2028 Olympics. This is a meaningful step, but it is not final type certification or authorization for full commercial passenger service. Archer Q3 results and FAA certificate
• Positive Sentiment: Third-quarter revenue was $5.1 million, above the $3.57 million consensus estimate. Archer also forecast fourth-quarter revenue of $5 million to $6 million, slightly above the $4.9 million estimate. It ended the quarter with about $1.4 billion in cash, providing funding for development and launch efforts. Q3 earnings-call highlights
• Positive Sentiment: Archer said its Boeing transaction is nearing a close, potentially adding a major strategic shareholder and expanding its defense business. The company is also targeting 2027 passenger service, though execution and regulatory milestones remain. Q3 call highlights
• Negative Sentiment: The quarter’s loss was $0.35 per share, slightly worse than the $0.34 consensus and wider than the $0.20 loss a year earlier. The earnings miss, despite the revenue beat, has contributed to pressure on the stock. Analysis of FAA milestone and results
• Negative Sentiment: Several firms lowered their price targets: Needham cut its target to $7, Cantor Fitzgerald to $10, and Deutsche Bank to $10. All maintained positive ratings, but the reductions reflect more cautious near-term expectations. Analyst target changes

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on ACHR. UBS Group restated an “overweight” rating on shares of Archer Aviation in a report on Tuesday, August 11th. HC Wainwright reissued a “buy” rating on shares of Archer Aviation in a research report on Tuesday, August 11th. Cantor Fitzgerald decreased their price objective on shares of Archer Aviation from $11.00 to $10.00 and set an “overweight” rating for the company in a research note on Tuesday. Wells Fargo & Company set a $18.00 target price on Archer Aviation in a research report on Tuesday, August 11th. Finally, Needham & Company LLC cut their target price on Archer Aviation from $9.00 to $7.00 and set a “buy” rating on the stock in a research note on Tuesday. Six investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $11.00.

Insider Activity

In other news, insider Eric Lentell sold 100,000 shares of the company’s 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 transaction, the insider directly owned 85,011 shares in the company, valued at approximately $536,419.41. This represents a 54.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Priya Gupta sold 10,015 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 transaction of $64,196.15. Following the completion of the transaction, the chief financial officer directly owned 202,784 shares in the company, valued at $1,299,845.44. This represents a 4.71% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 176,657 shares of company stock valued at $1,122,371. 5.55% of the stock is currently owned by company insiders.

Institutional Trading of Archer Aviation

Several institutional investors and hedge funds have recently modified their holdings of the stock. Voya Investment Management LLC lifted its position in Archer Aviation by 48.2% during the third quarter. Voya Investment Management LLC now owns 10,118,847 shares of the company’s stock valued at $50,291,000 after acquiring an additional 3,289,910 shares during the last quarter. Public Sector Pension Investment Board purchased a new position in Archer Aviation in the third quarter worth $2,803,000. Global Retirement Partners LLC grew its holdings in Archer Aviation by 37.1% in the third quarter. Global Retirement Partners LLC now owns 8,472 shares of the company’s stock worth $42,000 after purchasing an additional 2,292 shares during the last quarter. Cibc World Market Inc. grew its holdings in Archer Aviation by 43.0% in the third quarter. Cibc World Market Inc. now owns 19,626 shares of the company’s stock worth $98,000 after purchasing an additional 5,900 shares during the last quarter. Finally, HighTower Advisors LLC increased its position in shares of Archer Aviation by 37.4% during the third quarter. HighTower Advisors LLC now owns 228,693 shares of the company’s stock worth $1,137,000 after purchasing an additional 62,238 shares in the last quarter. Institutional investors own 59.34% of the company’s stock.

Archer Aviation Stock Performance

The business has a 50-day moving average price of $4.85 and a 200-day moving average price of $5.71. The company has a quick ratio of 10.21, a current ratio of 10.21 and a debt-to-equity ratio of 0.06. The firm has a market capitalization of $3.62 billion, a price-to-earnings ratio of -4.35 and a beta of 3.59.

About Archer Aviation

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.