ACHR Stock Recovers 10% in 5 Days as Investors Refocus on Growth after CFO Exit
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Why Archer Aviation Shares Recovered
Several developments may have contributed to the stock's recovery. First, Archer Aviation confirmed that Priya Gupta, who has been serving as acting CFO since September 2024, will remain in the role. The leadership transition had already been in place for months, reducing the perceived risk of disruption. Gupta's continuation in the position likely reassured investors focused on financial continuity and upcoming commercialization plans.
Second, analysts have remained upbeat. Archer Aviation currently holds a 'Moderate Buy' consensus based on six recent analyst ratings. Canaccord Genuity and Cantor Fitzgerald both reiterated their $13 price targets this week, while H.C. Wainwright maintained its $18 forecast.
Institutional activity also played a role. ARK Invest sold shares of Archer Aviation across its exchange-traded funds on the same day as the resignation announcement, but the sale was part of a broader portfolio rebalance. ARK still holds a position in the company, although it has been gradually reducing exposure in recent months. Market reaction suggests that investors viewed the sale as mechanical rather than a negative signal.
Meanwhile, a Form 144 filed this week disclosed that the exiting CFO, Mark Mesler, intends to sell over 165,000 shares, following a vesting event tied to compensation. The company also entered into a transition agreement with Mesler, which included a cash payout and accelerated vesting of certain restricted stock units.
Despite the brief volatility, Archer Aviation has regained upward momentum. The stock is now trading above both its pre-resignation level and its average 12-month price target, as investors look ahead to operational milestones and leadership continuity under Gupta.
Is Archer Aviation Stock a Good Buy?
an average 12-month price target of $11.75. This implies a 2.81% downside from the current price.
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Yahoo
9 hours ago
- Yahoo
Should You Buy Archer Aviation Stock While It's Below $18?
Key Points Archer Aviation's stock soared as it started its first test flights. It plans to ramp up its production over the next few years. Its stock looks expensive, but it could deserve that premium valuation. 10 stocks we like better than Archer Aviation › Archer Aviation's (NYSE: ACHR) stock rallied more than 150% over the past 12 months. The developer of electric vertical take-off and landing (eVTOL) aircraft impressed the market as it secured more partnerships and inched closer to a full approval of its U.S. air taxi flights. At $13, its stock trades less than $1 below its 52-week high of $13.92 on May 16. But it's still well below Wall Street's top price target of $18, which H.C. Wainwright's analysts set in June. The firm expects that growth to be driven by its expansion of Archer's urban air taxi business, its government contracts, and its diversification into other industries. Should investors buy Archer's stock before it reaches that price? Or is it due for a breather until it generates enough revenue to support its soaring valuations? The bull case for Archer Aviation Archer's Midnight eVTOL aircraft carries a single pilot and four passengers, travels up to 100 miles on a single charge, and can reach a maximum speed of 150 miles per hour. Its drone-like design also makes it easier to land than helicopters in crowded urban areas. Those advantages make the Midnight well-suited for short-range air taxi services. Its top customers already include United Airlines (NASDAQ: UAL), which placed an order for 200 Midnight aircraft; Future Flight Global, which ordered 116 aircraft; and Soracle (a joint venture between Japan Airlines and Sumimoto), which ordered 100 aircraft. Its other new customers include Ethiopian Airlines and Abu Dhabi Aviation. All of those companies plan to launch air taxi routes with Archer's Midnight aircraft in the near future. It recently completed its first test flights in Abu Dhabi, and it aims to start its commercial flights this year. In the U.S., it expects the Federal Aviation Administration (FAA) to grant it a final approval for its commercial flights this year to clear the way for its first air taxi flights. Archer also plans to launch its own first-party air taxi service within the next two years, and it expects its flights to eventually cost about the same as Uber's (NYSE: UBER) premium UberBlack service. To support that launch, it secured a spot as the official air taxi services provider for the Summer Olympics in L.A. in 2028. The automaker Stellantis (NYSE: STLA), one of Archer's top investors, also hired the company as a contract manufacturer for its own branded eVTOL aircraft. Other automakers and aviation companies could eventually follow that lead and hire Archer to produce their own eVTOL aircraft. Archer should also secure more government contracts. It already delivered its first aircraft to the U.S. Air Force (USAF) for testing purposes as part of its contract with the Department of Defense last year, and it's expected to deliver up to five more aircraft to the U.S. Air Force over the next few years. By sticking to that roadmap, Archer aims to produce 10 aircraft in 2025, 48 aircraft in 2026, 252 aircraft in 2027, and 650 aircraft in 2028. That aggressive expansion should be supported by Stellantis' ongoing investments, more rounds of funding, and its new artificial intelligence (AI) partnership with Palantir (NASDAQ: PLTR) to optimize its manufacturing capabilities and aviation systems. If that happens, analysts expect Archer's revenue to soar from $13 million in 2025 to $437 million in 2027. But with an order backlog of about $6 billion, it could grow even larger over the following years as it displaces traditional helicopters with its sleeker, quieter, and greener aircraft. That might be why its insiders bought more than 7 times as many shares as they sold over the past 12 months. The bear case against Archer Aviation Archer has a lot of growth potential, but it isn't generating any meaningful revenue yet. It's expected to lose more than half a billion dollars annually through 2027, which means it will need to keep diluting its own shares and taking on more debt to stay solvent through its expansion. That's why its number of outstanding shares increased by 127% over the past three years. It ended its latest quarter with a manageable debt-to-equity ratio of 0.2, but that was partly because its newly issued shares increased its shareholder equity relative to its total liabilities. A lot of growth has also been baked into Archer's valuations. With a market cap of $7.7 billion, it trades at nearly 18 times its projected revenue for 2027. That might seem reasonable relative to its growing backlog, but it still hasn't scaled up its business yet. Therefore, any disruptions or delays could pop those valuations and crush its stock. Should you invest in Archer Aviation at these levels? Archer Aviation is still a highly speculative stock. That said, I believe its strengths outweigh its weaknesses. It's establishing an early mover's advantage in the nascent eVTOL aircraft market, it's backed by big companies, its backlog is growing, and it has clear plans for the future. If you believe it can achieve its ambitious goals, then it's worth buying as it trades in the low teens. However, you also need to buckle up and brace for a lot of near-term volatility. Should you invest $1,000 in Archer Aviation right now? Before you buy stock in Archer Aviation, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Archer Aviation wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies and Uber Technologies. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy. Should You Buy Archer Aviation Stock While It's Below $18? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
4 days ago
- Business Insider
ACHR Stock Recovers 10% in 5 Days as Investors Refocus on Growth after CFO Exit
Shares of Archer Aviation (ACHR) climbed 7.4% to $12.09 in yesterday's trading session and are up more than 10% over the past five trading days. The move comes after a brief pullback last week, when the company announced that Chief Financial Officer Mark Mesler had formally resigned. That announcement initially sent the stock down 2.5% to $10.51, but investor sentiment appears to have quickly stabilized. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Why Archer Aviation Shares Recovered Several developments may have contributed to the stock's recovery. First, Archer Aviation confirmed that Priya Gupta, who has been serving as acting CFO since September 2024, will remain in the role. The leadership transition had already been in place for months, reducing the perceived risk of disruption. Gupta's continuation in the position likely reassured investors focused on financial continuity and upcoming commercialization plans. Second, analysts have remained upbeat. Archer Aviation currently holds a 'Moderate Buy' consensus based on six recent analyst ratings. Canaccord Genuity and Cantor Fitzgerald both reiterated their $13 price targets this week, while H.C. Wainwright maintained its $18 forecast. Institutional activity also played a role. ARK Invest sold shares of Archer Aviation across its exchange-traded funds on the same day as the resignation announcement, but the sale was part of a broader portfolio rebalance. ARK still holds a position in the company, although it has been gradually reducing exposure in recent months. Market reaction suggests that investors viewed the sale as mechanical rather than a negative signal. Meanwhile, a Form 144 filed this week disclosed that the exiting CFO, Mark Mesler, intends to sell over 165,000 shares, following a vesting event tied to compensation. The company also entered into a transition agreement with Mesler, which included a cash payout and accelerated vesting of certain restricted stock units. Despite the brief volatility, Archer Aviation has regained upward momentum. The stock is now trading above both its pre-resignation level and its average 12-month price target, as investors look ahead to operational milestones and leadership continuity under Gupta. Is Archer Aviation Stock a Good Buy? an average 12-month price target of $11.75. This implies a 2.81% downside from the current price.
Yahoo
4 days ago
- Yahoo
Archer Aviation Skyrocketed Today. Is the Stock a Buy Right Now?
Key Points Archer Aviation stock saw double-digit gains in Thursday's trading amid bullish momentum for the broader market. Speculative growth stocks saw especially strong gains today, and Archer continued to get a boost from some favorable indicators in the eVTOL space. Archer Aviation stock probably isn't a good fit for investors without high risk tolerance, but the company could be in the early stages of a big long-term growth story. 10 stocks we like better than Archer Aviation › Archer Aviation (NYSE: ACHR) stock posted big gains in Thursday's trading. The company's share price climbed 10.8% in the daily session. Meanwhile, the S&P 500 index was up 0.5%, and the Nasdaq Composite was up 0.7%. Archer Aviation is gaining ground today thanks to bullish momentum for the broader market and especially strong valuation tailwinds for speculative tech stocks. While there isn't any fresh business-specific news for the company, its stock appears to be getting a boost from recent news that Joby Aviation will be significantly expanding production for its electric vertical takeoff and landing (eVTOL) aircraft. Archer's valuation has also continued to benefit from expectations that the Federal Reserve will serve up multiple interest rate cuts this year. Is Archer Aviation stock a buy right now? Archer Aviation now has a market capitalization of roughly $7.4 billion despite the business being expected to post relatively little revenue this year. The company is trading at roughly 581 times its expected revenue for this year. The business's sales could scale rapidly further out, but there's still a huge amount of speculation involved in charting its trajectory. Archer Aviation is a high-risk, high-reward stock. While the company has recently seen some big valuation gains in conjunction with favorable developments on macroeconomic fronts and indications that the eVTOL industry could be poised to take off, investors must move forward with the understanding that the company's stock could see big downside volatility if economic and industry-specific backdrops take a turn for the worse. Archer has seen a big valuation outlook, but its performance outlook remains heavily speculative. In addition to its growth opportunities in the commercial air-taxi space, Archer also has expansion potential in the defense industry. Wins on these fronts could power more big gains for the stock, but the company probably isn't a good fit for investors without a high tolerance for risk. Should you buy stock in Archer Aviation right now? Before you buy stock in Archer Aviation, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Archer Aviation wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,281!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,415!* Now, it's worth noting Stock Advisor's total average return is 1,058% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Keith Noonan has positions in Archer Aviation. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Archer Aviation Skyrocketed Today. Is the Stock a Buy Right Now? was originally published by The Motley Fool Sign in to access your portfolio
