Archer Aviation (NYSE:ACHR) Shares Gap Up – Should You Buy?

Archer Aviation Inc. (NYSE:ACHR)’s share price gapped up before the market opened on Monday . The stock had previously closed at $5.59, but opened at $6.41. Archer Aviation shares last traded at $6.7710, with a volume of 32,990,469 shares trading hands.

Archer Aviation News Roundup

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

• Positive Sentiment: Major Boeing acquisition: Archer will acquire Boeing’s Wisk Aero, Insitu and SkyGrid subsidiaries in an all-stock transaction. The deal adds autonomous aircraft technology, drone capabilities and airspace-management infrastructure, creating a broader end-to-end aerospace and defense platform. Reuters article
• Positive Sentiment: Profitable revenue added: Archer said the acquired defense business generates more than $200 million in annual revenue and operates across 35 countries. This could provide Archer with a meaningful commercial and military business alongside its still-developing air-taxi operations. Archer Aviation press release
• Positive Sentiment: Boeing endorsement and collaboration: Boeing will receive nearly a 20% stake in the combined company and continue collaborating with Archer on Wisk’s autonomous-flight technology. Boeing’s investment validates Archer’s strategy and may improve access to aerospace expertise, customers and funding. CNBC article

Analyst Upgrades and Downgrades

A number of research firms recently commented on ACHR. Canaccord Genuity Group decreased their target price on Archer Aviation from $13.00 to $12.00 and set a “buy” rating for the company in a report on Tuesday, May 12th. Barclays upgraded shares of Archer Aviation to a “hold” rating in a report on Wednesday, July 29th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Archer Aviation in a research note on Friday, July 17th. Four research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $11.83.

Archer Aviation Price Performance

The company has a debt-to-equity ratio of 0.06, a current ratio of 18.06 and a quick ratio of 18.06. The stock has a fifty day simple moving average of $5.18 and a 200-day simple moving average of $5.99. The company has a market capitalization of $4.78 billion, a price-to-earnings ratio of -5.73 and a beta of 3.20.

Archer Aviation (NYSE:ACHR) last issued its quarterly earnings data on Monday, May 11th. The company reported ($0.28) EPS for the quarter, missing analysts’ consensus estimates of ($0.25) by ($0.03). The firm had revenue of $1.60 million for the quarter, compared to analyst estimates of $1.66 million. During the same quarter last year, the firm earned ($0.17) earnings per share. On average, equities research analysts anticipate that Archer Aviation Inc. will post -1.4 EPS for the current year.

Insider Activity

In other Archer Aviation news, insider Eric Lentell sold 48,169 shares of Archer Aviation stock in a transaction on Monday, May 18th. The shares were sold at an average price of $5.95, for a total value of $286,605.55. Following the completion of the transaction, the insider owned 141,084 shares of the company’s stock, valued at approximately $839,449.80. The trade was a 25.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Priya Gupta sold 9,860 shares of the company’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 $58,667.00. Following the completion of the transaction, the chief financial officer owned 189,050 shares of the company’s stock, valued at approximately $1,124,847.50. This trade represents a 4.96% 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 three months, insiders sold 250,743 shares of company stock valued at $1,497,672. 5.55% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Archer Aviation

A number of institutional investors have recently modified their holdings of ACHR. Norges Bank acquired a new position in Archer Aviation in the 4th quarter worth about $58,494,000. Man Group plc grew its holdings in Archer Aviation by 13,793.3% in the second quarter. Man Group plc now owns 4,212,722 shares of the company’s stock valued at $45,708,000 after purchasing an additional 4,182,400 shares during the period. BNP Paribas Financial Markets grew its holdings in Archer Aviation by 423.3% in the fourth quarter. BNP Paribas Financial Markets now owns 5,126,217 shares of the company’s stock valued at $38,549,000 after purchasing an additional 4,146,574 shares during the period. ARK Investment Management LLC increased its position in shares of Archer Aviation by 12.4% in the fourth quarter. ARK Investment Management LLC now owns 35,170,701 shares of the company’s stock valued at $264,484,000 after buying an additional 3,869,252 shares in the last quarter. Finally, State Street Corp increased its position in shares of Archer Aviation by 11.2% in the fourth quarter. State Street Corp now owns 32,773,136 shares of the company’s stock valued at $246,454,000 after buying an additional 3,293,130 shares in the last quarter. 59.34% of the stock is currently owned by institutional investors and hedge funds.

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.