Archer Aviation (NYSE:ACHR) Trading Down 7.6% – Should You Sell?

Archer Aviation Inc. (NYSE:ACHR)’s share price fell 7.6% during mid-day trading on Tuesday . The stock traded as low as $5.20 and last traded at $5.2950. 56,704,966 shares changed hands during mid-day trading, an increase of 49% from the average session volume of 38,073,207 shares. The stock had previously closed at $5.73.

Wall Street Analysts Forecast Growth

ACHR has been the topic of a number of research reports. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Archer Aviation in a research report on Monday, April 20th. Canaccord Genuity Group decreased their price target on shares of Archer Aviation from $13.00 to $12.00 and set a “buy” rating on the stock in a research report on Tuesday, May 12th. Finally, Needham & Company LLC decreased their price target on shares of Archer Aviation from $10.00 to $9.00 and set a “buy” rating on the stock in a research report on Tuesday, March 3rd. Five 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. Based on data from MarketBeat.com, Archer Aviation presently has a consensus rating of “Moderate Buy” and a consensus price target of $11.83.

Archer Aviation Price Performance

The company has a market cap of $4.03 billion, a P/E ratio of -4.82 and a beta of 3.14. The stock has a 50-day simple moving average of $5.97 and a 200 day simple moving average of $6.92. The company has a debt-to-equity ratio of 0.06, a quick ratio of 18.06 and a current ratio of 18.06.

Archer Aviation (NYSE:ACHR) last issued its earnings results on Monday, May 11th. The company reported ($0.28) EPS for the quarter, missing analysts’ consensus estimates of ($0.25) by ($0.03). The company had revenue of $1.60 million during the quarter, compared to analyst estimates of $1.66 million. During the same period last year, the firm earned ($0.17) EPS. On average, equities analysts expect that Archer Aviation Inc. will post -1.47 EPS for the current year.

Insider Activity at Archer Aviation

In other news, CAO Harsh Rungta sold 12,414 shares of the firm’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $5.95, for a total transaction of $73,863.30. Following the completion of the transaction, the chief accounting officer directly owned 87,210 shares of the company’s stock, valued at approximately $518,899.50. This trade represents a 12.46% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Thomas Paul Muniz sold 91,839 shares of the firm’s stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $5.95, for a total transaction of $546,442.05. Following the transaction, the chief technology officer directly owned 1,462,314 shares of the company’s stock, valued at $8,700,768.30. The trade was a 5.91% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 282,840 shares of company stock worth $1,703,688 in the last ninety days. Company insiders own 7.65% of the company’s stock.

Hedge Funds Weigh In On Archer Aviation

A number of hedge funds and other institutional investors have recently made changes to their positions in ACHR. Seven Grand Managers LLC acquired a new position in Archer Aviation during the 4th quarter worth about $22,560,000. Sumitomo Mitsui Trust Group Inc. boosted its position in Archer Aviation by 21.6% in the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 7,914,191 shares of the company’s stock valued at $59,515,000 after buying an additional 1,407,775 shares during the last quarter. Norges Bank acquired a new stake in shares of Archer Aviation in the 4th quarter valued at $58,494,000. Vanguard Group Inc. increased its stake in shares of Archer Aviation by 4.4% in the 4th quarter. Vanguard Group Inc. now owns 54,676,158 shares of the company’s stock valued at $411,165,000 after buying an additional 2,312,899 shares during the period. Finally, Generali Powszechne Towarzystwo Emerytalne acquired a new stake in shares of Archer Aviation in the 4th quarter valued at $7,520,000. 59.34% of the stock is owned by institutional investors.

About Archer Aviation

Archer Aviation, Inc (NYSE: ACHR) is a California-based aerospace company developing electric vertical takeoff and landing (eVTOL) aircraft designed to serve as sustainable urban air mobility solutions. Founded in 2018 by Adam Goldstein and Brett Adcock, Archer focuses on the design, development and certification of zero-emissions air taxis aimed at reducing traffic congestion in densely populated metropolitan areas. The company’s flagship prototypes, “Maker” and “Midnight,” have been engineered to deliver quiet, efficient short-haul flights with ranges of up to 100 miles per charge.

Headquartered in Palo Alto, California, Archer operates a manufacturing facility in nearby Santa Cruz County and maintains research partnerships with automotive and energy companies, including a collaboration with Stellantis to integrate advanced battery systems.