Archer Aviation (NYSE:ACHR) Stock Falls 7% – Should You Sell?

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

Latest Archer Aviation News

These are some of the ACHR news items that stood out recently:

• Positive Sentiment: A Formula One partnership could raise Archer’s visibility, while ARK Invest’s reported share purchases signal interest from a prominent investor. Neither development guarantees near-term revenue. Article: Archer Aviation partners with Formula One Article: ARK Invest buys Archer shares
• Neutral Sentiment: Archer has made progress on its Midnight aircraft and reached an FAA milestone, but certification and commercialization still involve further hurdles. Strong liquidity provides a financial cushion as it works toward those goals. Article: Archer Aviation’s FAA certificate is a milestone, but it isn’t the final one
• Negative Sentiment: Third-quarter EPS missed estimates by a penny, despite revenue exceeding forecasts. Analysts’ subsequent price-target reductions weighed on sentiment; Canaccord maintained a Buy rating, illustrating mixed views. Archer shares are also down sharply over the past year. Article: Archer Aviation falls following two analyst ratings

Analyst Ratings Changes

A number of brokerages recently commented on ACHR. Weiss Ratings restated a “sell (d-)” rating on shares of Archer Aviation in a research note on Thursday, October 15th. Needham & Company LLC dropped their target price on Archer Aviation from $9.00 to $7.00 and set a “buy” rating on the stock in a research report on Tuesday. Wells Fargo & Company set a $18.00 target price on Archer Aviation in a research note on Tuesday, August 11th. Cantor Fitzgerald reduced their price target on shares of Archer Aviation from $11.00 to $10.00 and set an “overweight” rating for the company in a report on Tuesday. Finally, UBS Group restated an “overweight” rating on shares of Archer Aviation in a research report on Tuesday, August 11th. Six analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Archer Aviation has an average rating of “Moderate Buy” and an average target price of $10.58.

Archer Aviation Trading Down 7.0%

The firm has a 50-day moving average of $4.79 and a 200 day moving average of $5.65. The company has a current ratio of 8.02, a quick ratio of 10.21 and a debt-to-equity ratio of 0.10. The stock has a market capitalization of $3.10 billion, a price-to-earnings ratio of -3.27 and a beta of 3.59.

Archer Aviation (NYSE:ACHR) last announced its quarterly earnings results on Monday, November 9th. The company reported ($0.35) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 business had revenue of $5.10 million for the quarter, compared to analyst estimates of $3.57 million. During the same quarter last year, the firm posted ($0.20) EPS. As a group, equities analysts predict that Archer Aviation Inc. will post -1.37 EPS for the current fiscal year.

Insider Activity

In related 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 completion of the sale, the insider owned 85,011 shares of the company’s stock, valued at $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 available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Harsh Rungta sold 13,880 shares of the stock in a transaction dated Monday, August 17th. The shares were 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 of the company’s stock, valued at $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. Over the last ninety days, insiders have sold 176,657 shares of company stock valued at $1,122,371. Company insiders own 5.55% of the company’s stock.

Institutional Trading of Archer Aviation

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Voya Investment Management LLC lifted its stake in shares of Archer Aviation by 48.2% in the 3rd quarter. Voya Investment Management LLC now owns 10,118,847 shares of the company’s stock worth $50,291,000 after acquiring an additional 3,289,910 shares during the period. Renaissance Technologies LLC increased its stake in shares of Archer Aviation by 703.3% during the first 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 acquired a new position in shares of Archer Aviation during the second quarter valued at approximately $10,190,000. Public Sector Pension Investment Board acquired a new position in shares of Archer Aviation during the third quarter valued at approximately $2,803,000. Finally, Sumitomo Mitsui Trust Group Inc. raised its holdings in Archer Aviation by 7.3% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 8,072,347 shares of the company’s stock worth $40,120,000 after purchasing an additional 549,998 shares in the last quarter. 59.34% of the stock is currently owned by institutional investors.

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.