Archer Aviation (NYSE:ACHR) Stock Price Down 2.3% Following Weak Earnings

Archer Aviation Inc. (NYSE:ACHR) shares dropped 2.3% on Tuesday following a weaker than expected earnings announcement. The company traded as low as $4.34 and last traded at $4.70. 40,868,226 shares traded hands during trading, an increase of 18% from the average session volume of 34,614,121 shares. The stock had previously closed at $4.81.

The company reported ($0.35) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.34) by ($0.01). The company had revenue of $5.10 million during the quarter, compared to the consensus estimate of $3.57 million. During the same quarter in the prior year, the company earned ($0.20) earnings per share.

Key Stories Impacting Archer Aviation

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

• Positive Sentiment: Archer received an FAA market survey certificate for its Midnight aircraft, enabling piloted operations in Los Angeles. The company says this supports its LA launch plans and its role as the city’s air-taxi operator for the 2028 Olympics. This is a meaningful step, but it is not final type certification or authorization for full commercial passenger service. Archer Q3 results and FAA certificate
• Positive Sentiment: Third-quarter revenue was $5.1 million, above the $3.57 million consensus estimate. Archer also forecast fourth-quarter revenue of $5 million to $6 million, slightly above the $4.9 million estimate. It ended the quarter with about $1.4 billion in cash, providing funding for development and launch efforts. Q3 earnings-call highlights
• Positive Sentiment: Archer said its Boeing transaction is nearing a close, potentially adding a major strategic shareholder and expanding its defense business. The company is also targeting 2027 passenger service, though execution and regulatory milestones remain. Q3 call highlights
• Negative Sentiment: The quarter’s loss was $0.35 per share, slightly worse than the $0.34 consensus and wider than the $0.20 loss a year earlier. The earnings miss, despite the revenue beat, has contributed to pressure on the stock. Analysis of FAA milestone and results
• Negative Sentiment: Several firms lowered their price targets: Needham cut its target to $7, Cantor Fitzgerald to $10, and Deutsche Bank to $10. All maintained positive ratings, but the reductions reflect more cautious near-term expectations. Analyst target changes

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the stock. Wells Fargo & Company set a $18.00 price objective on shares of Archer Aviation in a report on Tuesday, August 11th. Barclays raised shares of Archer Aviation from an “equal weight” rating to an “overweight” rating and boosted their target price for the stock from $4.50 to $8.00 in a research report on Friday, October 9th. Needham & Company LLC cut their price target 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. UBS Group restated an “overweight” rating on shares of Archer Aviation in a research note on Tuesday, August 11th. Finally, HC Wainwright reaffirmed a “buy” rating on shares of Archer Aviation in a report on Tuesday, August 11th. Six investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Archer Aviation presently has a consensus rating of “Moderate Buy” and an average price target of $11.00.

Insiders Place Their Bets

In other Archer Aviation news, CAO Harsh Rungta sold 13,880 shares of the business’s stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $6.41, for a total transaction of $88,970.80. Following the sale, the chief accounting officer owned 110,847 shares in the company, valued at approximately $710,529.27. The trade was a 11.13% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 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 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 transaction, the insider directly owned 85,011 shares in the company, valued at $536,419.41. This represents a 54.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 176,657 shares of company stock valued at $1,122,371. 5.55% of the stock is owned by company insiders.

Hedge Funds Weigh In On Archer Aviation

Hedge funds and other institutional investors have recently bought and sold shares of the business. Voya Investment Management LLC lifted its stake in Archer Aviation by 48.2% during the 3rd quarter. Voya Investment Management LLC now owns 10,118,847 shares of the company’s stock valued at $50,291,000 after acquiring an additional 3,289,910 shares during the period. Sumitomo Mitsui Trust Group Inc. increased its stake in shares of Archer Aviation by 7.3% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 8,072,347 shares of the company’s stock worth $40,120,000 after acquiring an additional 549,998 shares during the period. Renaissance Technologies LLC increased its stake in shares of Archer Aviation by 703.3% in the first quarter. Renaissance Technologies LLC now owns 2,514,300 shares of the company’s stock worth $12,999,000 after acquiring an additional 2,201,300 shares during the period. Bank of America Corp DE increased its stake in shares of 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 worth $11,048,000 after acquiring an additional 532,762 shares during the period. Finally, Bank of New York Mellon Corp purchased a new position in shares of Archer Aviation during the second quarter worth $10,190,000. Institutional investors and hedge funds own 59.34% of the company’s stock.

Archer Aviation Trading Down 2.3%

The company has a debt-to-equity ratio of 0.06, a current ratio of 10.21 and a quick ratio of 10.21. The company’s fifty day moving average is $4.85 and its 200-day moving average is $5.71. The stock has a market cap of $3.62 billion, a PE ratio of -4.35 and a beta of 3.59.

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.