Archer Aviation (NYSE:ACHR) Stock Falls 7% – Time to Sell?

Shares of Archer Aviation Inc. (NYSE:ACHR) were down 7% on Friday. The company traded as low as $4.02 and last traded at $4.0250. Approximately 19,775,008 shares were traded during trading, a decline of 43% from the average session volume of 34,474,199 shares. The stock had previously closed at $4.33.

Key Headlines Impacting Archer Aviation

Investors following ACHR have been watching these headlines:

• Positive Sentiment: Partnerships with ITA Airways and Formula One could broaden Archer’s commercial visibility and support plans for air-taxi services, including a proposed Italy network. ITA Airways partnership Formula One partnership
• Neutral Sentiment: Archer reported quarterly revenue above analyst expectations but missed the EPS consensus by one cent. Its FAA certification progress and liquidity are potential supports, though certification still has further hurdles. FAA certification milestone
• Negative Sentiment: The stock has underperformed over the past year, and continued losses and the long path to commercial operations remain important risks. Performance and outlook

Analyst Ratings Changes

Several equities research analysts have recently issued reports on ACHR shares. Canaccord Genuity Group dropped their price objective on shares of Archer Aviation from $12.00 to $9.50 and set a “buy” rating for the company in a research report on Wednesday. Needham & Company LLC cut their target price on shares of Archer Aviation from $9.00 to $7.00 and set a “buy” rating on the stock in a research note on Tuesday, November 10th. Wells Fargo & Company set a $18.00 target price on shares of Archer Aviation in a report on Tuesday, August 11th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Archer Aviation in a research report on Thursday, October 15th. Finally, Cantor Fitzgerald decreased their price target on shares of Archer Aviation from $11.00 to $10.00 and set an “overweight” rating for the company in a research report on Tuesday, November 10th. Six analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Archer Aviation has a consensus rating of “Moderate Buy” and a consensus target price of $10.58.

Archer Aviation Trading Down 7.0%

The firm has a market capitalization of $3.10 billion, a PE ratio of -3.27 and a beta of 3.59. The company has a debt-to-equity ratio of 0.10, a quick ratio of 10.21 and a current ratio of 8.02. The firm has a fifty day moving average of $4.76 and a 200 day moving average of $5.63.

Archer Aviation (NYSE:ACHR) last released its quarterly earnings results on Monday, November 9th. The company reported ($0.35) EPS for the quarter, missing the consensus estimate of ($0.34) by ($0.01). Archer Aviation had a negative return on equity of 46.62% and a negative net margin of 7,869.17%. The company had revenue of $5.10 million for the quarter, compared to analyst estimates of $3.57 million. During the same period last year, the firm posted ($0.20) earnings per share. Equities research analysts expect that Archer Aviation Inc. will post -1.37 EPS for the current year.

Insider Transactions at Archer Aviation

In other news, CFO Priya Gupta sold 10,015 shares of the company’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $6.41, for a total value of $64,196.15. Following the completion of the transaction, the chief financial officer directly owned 202,784 shares in the company, valued at approximately $1,299,845.44. This represents a 4.71% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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 on Thursday, August 20th. The shares were sold at an average price of $6.31, for a total transaction of $631,000.00. Following the completion of the transaction, the insider owned 85,011 shares of the company’s stock, valued at $536,419.41. This trade represents a 54.05% decrease in their ownership of the stock. 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. Over the last three months, insiders have sold 176,657 shares of company stock valued at $1,122,371. Corporate insiders own 5.55% of the company’s stock.

Institutional Trading of Archer Aviation

Several large investors have recently modified their holdings of the business. Bank of America Corp DE boosted its stake in 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 during the period. California State Teachers Retirement System grew its holdings in shares of Archer Aviation by 21.0% during the first quarter. California State Teachers Retirement System now owns 716,066 shares of the company’s stock valued at $3,702,000 after purchasing an additional 124,052 shares during the last quarter. SummitTX Capital L.P. bought a new position in shares of Archer Aviation during the first quarter valued at approximately $709,000. Fifth Third Bancorp raised its position in shares of Archer Aviation by 4,133.1% during the 1st quarter. Fifth Third Bancorp now owns 142,868 shares of the company’s stock worth $739,000 after purchasing an additional 139,493 shares during the period. Finally, Odyssean LLC raised its position in shares of Archer Aviation by 707.0% during the 2nd quarter. Odyssean LLC now owns 260,940 shares of the company’s stock worth $1,234,000 after purchasing an additional 228,606 shares during the period. 59.34% of the stock is currently owned by institutional investors and hedge funds.

Archer Aviation Company Profile

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.