On June 4th, 2023, Archer Aviation Inc. (NYSE:ACHR) experienced a decline in share price amidst insider selling activity. The company’s stock reached a low of $2.87 and closed at $2.88 after trading 704,852 shares during mid-day trading; a decrease of 64% from its average volume session of 1,970,583 shares.
Major shareholder Brett Adcock played a significant role in the selling activity as he sold 1,718,829 shares of the company’s stock on May 22nd. The stock was sold at an average price of $3.26 which resulted in a total transaction worth $5,603,382.54. Following the sale transaction, Brett Adcock owned 4,159,347 shares worth $13,559,471.22 directly.
The sale was disclosed by Archer Aviation Inc to the Securities & Exchange Commission (SEC) through its website where it notified its stakeholders about its insider selling activities. Insiders have sold over 2 million shares of company stock valued at over $8 million just this quarter alone thereby constituting almost one-third of the entire company’s public float with Brett Adcock owning approximately 30.67% of Archer Aviation’s stocks.
Archer Aviation Inc currently has a 50 day simple moving average of $2.47 and a 200-day simple moving average of $2.50 indicating levels lower than their current trading value. Amidst all these developments and fluctuations in stocks prices within the aviation industry sector Benchmark analysts had previously restated a “buy” rating and set a $12 target price on the Archer Aviation Inc’s stock back on March 10th.
Founded in Palo Alto back in 2018, Archer Aviation Inc is an urban air mobility company specializing in designing electric vertical takeoff and landing aircrafts for passengers’ transportation which they operate themselves too. The company has also undergone significant name changes too – it was previously known as Atlas Crest Investment Corp before rebranding as Archer Aviation Inc.
The company had reported gains previously on March 9th, 2023 where it had exceeded analysts’ predictions by reporting an $0.04 $/share growth in earnings results for the quarter where initially the consensus estimate of ($0.43) fell short due to the company’s ($0.39) EPS profits for that same quarter reported by Archer Aviation Inc.
With these recent insider selling activities possibly driving down stock prices, investors and stakeholders alike will be keenly observing further developments within one of America’s leading new urban mobility providers; Archer Aviation Inc.
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Institutional Investors Show Growing Interest in Archer Aviation’s Innovative Aerospace Technology
The world of finance is constantly in flux, with investors and institutions buying and selling shares in companies at a rapid pace. One such company that has experienced increased attention from investors is Archer Aviation. In recent months, various institutional investors and hedge funds have either added to their stake or reduced it in the electric aircraft manufacturer.
One notable investor is Raymond James Financial Services Advisors Inc., who acquired a new stake in Archer Aviation in the first quarter of 2023. The acquisition was valued at approximately $50,000, demonstrating a growing interest in the innovative aerospace technology of Archer Aviation.
Another institution that has taken an interest in Archer Aviation is Bank of New York Mellon Corp. They lifted their position by 29.2% during the first quarter, now owning 67,233 shares of the company’s stock valued at $323,000 after buying an additional 15,200 shares during the last quarter.
Citigroup Inc. also boosted its position in Archer Aviation by 143.5% during the first quarter, now owning 35,461 shares worth $171,000 after purchasing an additional 20,898 shares during the period. BlackRock Inc., on the other hand raised its holdings by 6.1% during the same period and currently owns 1,642,200 shares valued at $7,899,000.
Lastly, AJ Wealth Strategies LLC purchased a new stake in Archer Aviation worth about $1,005,000 during the first quarter. Overall institutional investors and hedge funds are known to own about 41.51% of the company’s stock.
It is evident that these financial institutions believe there is great potential for growth and development for Archer Aviation and are willing to invest to see its goals realized. The increasing investment trend reinforces these hopes toward more advanced air transportation while providing economic benefits for individuals as well as broadening energy-efficient transportation options – something that greatly impacts society today given global climate concerns- thanks to Archer Aviation’s eco-friendly aircraft technology.
