Archer Aviation Shares Dip 5.6% Amid Analyst Downgrades

Archer Aviation Inc. (NYSE:ACHR) experienced a notable decline in its stock price, falling by 5.6% during trading on Monday. The shares traded as low as $7.24, ultimately closing at $7.44. Approximately 66,379,866 shares changed hands, representing a significant increase of 69% compared to the average daily volume of 39,255,855 shares. This drop follows a previous closing price of $7.88.

Analyst ratings have played a crucial role in this recent downturn. On November 7, 2023, Needham & Company LLC revised its price target for Archer Aviation from $13.00 to $10.00, while maintaining a “buy” rating. Conversely, JPMorgan Chase & Co. lowered its target price from $10.00 to $8.00, assigning a “neutral” rating. The mixed responses from analysts have contributed to uncertainty surrounding the company’s stock.

Analyst Ratings and Market Consensus

The fluctuations in Archer Aviation’s stock have drawn attention from various analysts. Cantor Fitzgerald has set a price target of $13.00, while HC Wainwright reiterated a “buy” rating with a target of $18.00. In contrast, Weiss Ratings issued a “sell (d-)” rating. Currently, Archer Aviation holds a consensus rating of “Moderate Buy” with an average target price of $12.57, according to data from MarketBeat.com.

The company’s recent earnings report, released on November 6, 2023, indicated an earnings per share (EPS) of ($0.20), aligning with analysts’ expectations. Looking ahead, research analysts predict that Archer Aviation will report an EPS of ($1.32) for the current year.

Insider Transactions and Institutional Activity

Recent insider activity has also influenced perceptions of the company’s stock. On November 17, 2023, insider Eric Lentell sold 41,490 shares at an average price of $7.49, totaling approximately $310,760.10. Following this sale, Lentell retains 83,733 shares, valued at around $627,160.17. The transaction represented a 33.13% decrease in his ownership stake.

Additionally, Chief Financial Officer Priya Gupta sold 5,479 shares on the same day for a total of $41,037.71. Gupta now owns 161,523 shares, valued at approximately $1,209,807.27, marking a 3.28% decrease in her position. Over the past 90 days, insiders have sold a total of 182,635 shares, worth approximately $1,367,936. Currently, insiders hold 7.65% of the company’s stock.

Institutional investors have also made significant adjustments to their holdings in Archer Aviation. Sunbelt Securities Inc. increased its ownership by 83.2% in the third quarter, acquiring an additional 2,271 shares for a total of $48,000. Other notable changes include Advisory Services Network LLC and Camelot Portfolios LLC, which established new positions valued at approximately $81,000 and $144,000, respectively. Overall, institutional investors control 59.34% of Archer Aviation’s stock.

Archer Aviation, headquartered in San Jose, California, specializes in designing and developing electric vertical takeoff and landing aircraft, aiming to revolutionize urban air mobility. The company was previously known as Atlas Crest Investment Corp.

As analysts continue to assess Archer Aviation’s potential, shareholders will be closely monitoring upcoming developments and market reactions.