It is Poised to be a Bull Market for Archer Aviation Inc. (ACHR)

Archer Aviation Inc. (NYSE: ACHR) stock fell -4.63% on Monday to $2.68 against a previous-day closing price of $2.81. With 2.34 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.68 million shares. During the session, the Aerospace & Defense company that operates in wider Industrials sector, reached to the highest price of $2.9000 whereas the lowest price it dropped to was $2.6650. The 52-week range on ACHR shows that it touched its highest point at $5.24 and its lowest point at $1.62 during that stretch. It currently has a 1-year price target of $8.42.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ACHR was up-trending over the past week, with a rise of 3.08%, but this was up by 37.44% over a month. The stock lost -25.56% in the past year, while it has gained 43.32% so far this year. A look at the trailing 12-month EPS for ACHR yields -1.11 with Next year EPS estimates of -1.19. For the next quarter, that number is -0.30. This implies an EPS growth rate of -742.70% for this year and -35.20% for next year.

Float and Shares Shorts:

At present, 238.59 million ACHR shares are outstanding with a float of 129.86 million shares on hand for trading. On Dec 29, 2022, short shares totaled 10.45 million, which was 4.29% higher than short shares on Nov 29, 2022. In addition to Mr. Adam D. Goldstein as the firm’s Co-Founder, CEO & Director, Mr. Andrew P. Missan Esq. serves as its Chief Legal Officer & Sec.

Institutional Ownership:

Through their ownership of 39.98% of ACHR’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 23.07% of ACHR, in contrast to 18.19% held by mutual funds. Shares owned by individuals account for 11.71%. As the largest shareholder in ACHR with 5.60% of the stake, BlackRock Fund Advisors holds 9,949,997 shares worth 9,949,997. A second-largest stockholder of ACHR, ARK Investment Management LLC, holds 9,503,688 shares, controlling over 5.35% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in ACHR, holding 7,613,771 shares or 4.29% stake. With a 3.95% stake in ACHR, the ARK Autonomous Technology & Robot is the largest stakeholder. A total of 7,017,989 shares are owned by the mutual fund manager. The Invesco WilderHill Clean Energy E, which owns about 3.01% of ACHR stock, is the second-largest Mutual Fund holder. It holds 5,342,135 shares valued at 9.99 million. SPDR S&P Aerospace & Defense ETF holds 2.30% of the stake in ACHR, owning 4,083,185 shares worth 7.64 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Sep 29, 2022, ACHR reported revenue of $0.00 and operating income of -$80.20M. The EBITDA in the recently reported quarter was -$79.50M and diluted EPS was -$0.30.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ACHR since 6 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ACHR analysts setting a high price target of $12.00 and a low target of $3.50, the average target price over the next 12 months is $8.42. Based on these targets, ACHR could surge 347.76% to reach the target high and rise by 30.6% to reach the target low. Reaching the average price target will result in a growth of 214.18% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ACHR will report FY 2022 earnings on 03/12/2024. Analysts have provided yearly estimates in a range of -$0.83 being high and -$1.36 being low. For ACHR, this leads to a yearly average estimate of -$1.08. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Archer Aviation Inc. surprised analysts by $0.04 when it reported -$0.27 EPS against a consensus estimate of -$0.31. The surprise factor in the prior quarter was $0.03. Based on analyst estimates, the high estimate for the next quarter is -$0.27 and the low estimate is -$0.43. The average estimate for the next quarter is thus -$0.34.

Summary of Insider Activity:

Insiders traded ACHR stock several times over the past three months with 14 Buys and 14 Sells. In these transactions, 1,155,453 shares were bought while 1,059,812 shares were sold. The number of buy transactions has increased to 46 while that of sell transactions has risen to 40 over the past year. The total number of shares bought during that period was 6,980,835 while 5,614,876 shares were sold.

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