Latest news with #eVTOLIntegrationPilotProgram
Business Insider
9 hours ago
- Business
- Business Insider
‘Padding the Coffers Ahead of Lift Off,' Says Canaccord About Archer Aviation Stock
Archer Aviation (NYSE:ACHR) may have ruffled some feathers with news of dilution, but raising capital is often a necessary step – especially, pardon the pun, for companies looking to get projects off the ground. Confident Investing Starts Here: As it prepares to participate in the White House's newly announced eVTOL Integration Pilot Program (eIPP), Archer last week announced an $850 million private placement. It raised $817.1 million in net proceeds by selling 85 million shares of Class A common stock to institutional investors at $10 per share. The offering should lift Archer's cash reserves to around $1.8 billion – among the highest in the industry – based on its 1Q25 ending balance. The new funds are expected to support accelerated manufacturing and certification efforts tied to the eIPP. Canaccord analyst Austin Moeller thinks Archer's 'timely capital infusion' underscores the significance of Trump's executive order aimed at fast-tracking eVTOL deployment in the U.S. The eIPP, a key provision within the Unleashing American Drone Dominance EO, establishes a training program to showcase five U.S.-based eVTOL or UAM (urban air mobility) projects on an 'accelerated timeline' ahead of the 2028 LA Olympics. The Department of Transportation has 180 days to select the five aircraft designs. While dilutive and likely to raise questions about cash use, Moeller points out that the capital raise 'financially positions Archer Aviation to be a leader in US eVTOL aircraft deployment at key US airports (Newark, Chicago O'Hare) via the eIPP, in addition to providing a substantial capital backstop as manufacturing operations ramp in Covington, GA, for both commercial eVTOL passenger aircraft and hybrid-VTOL tactical drones.' With an estimated FY25 cash burn of around $466 million, Archer now has a 'significant runway' to scale up manufacturing over the next few years, which should also pave the way for revenue or cash deposits from its international 'Midnight Launch Edition' program. Meanwhile, on Monday Archer announced that it has partnered with PT. Industri Ketahanan Nasional (IKN) to deploy an initial fleet of its Midnight aircraft in Indonesia, the third country tapped for its 'Launch Edition' program. Archer has previously announced Launch Edition deployments in the UAE through a partnership with Abu Dhabi Aviation, and in Ethiopia via Ethiopian Airlines. Against this backdrop, Moeller rates ACHR shares a Buy, although to account for the equity dilution, his price target goes from $13.5 to $13. Still, there's a potential upside of 25% from current levels. (To watch Moeller's track record, click here) 3 other analysts also take a bullish stance on ACHR and with an additional 2 Holds, the stock claims a Moderate Buy consensus rating. The average target clocks in at $11.75, implying shares will post growth of 13% in the months ahead. (See ACHR stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Business Insider
a day ago
- Business
- Business Insider
Cathie Wood Buys the Dip in Archer Aviation Stock With a $40M Purchase
's ARK Invest leveraged the dip in Archer Aviation (ACHR) stock, adding $40.28 million worth of shares in the aviation company on Friday, June 13. Wood purchased 3,433,807 shares of the electric vertical take-off and landing (eVTOL) aircraft manufacturer through three funds. Confident Investing Starts Here: The Ark Innovation ETF (ARKK) acquired 2,830,022 shares of Archer Aviation, while the Ark Autonomous Technology & Robotics ETF (ARKQ) bought another 463,149 shares of ACHR, and the Ark Space Exploration & Innovation ETF (ARKX) purchased 140,636 shares of the company. At the same time, Wood continued to trim the fund's position in the defense sector by selling a total of 46,941 shares of Kratos Defense and Security Solutions (KTOS) for $1.94 million. Why Did ACHR Drop? Archer Aviation stock plunged 14.8% on Friday after the company announced an $850 million direct stock offering priced at $10 per share. Shareholders dumped ACHR stock in response to the impending dilution from the additional share sale. Archer Aviation has set ambitious targets ahead of the LA 28 Olympic Games, at which it is expected to serve as the Official Air Taxi Provider for the Olympic Games and Team USA. Moreover, President Donald Trump issued an Executive Order last week to implement an eVTOL Integration Pilot Program in the U.S., and Archer Aviation stands to benefit significantly as one of the few eVTOL companies. Is ACHR a Buy, Sell, or Hold? Analysts remain divided on Archer Aviation's long-term stock trajectory. On TipRanks, ACHR stock has a Moderate Buy consensus rating based on four Buys and two Hold ratings. Also, the average Archer Aviation price target of $11.75 implies 17.6% upside potential from current levels. Meanwhile, ACHR stock has already gained more than 215% in the past year.
Yahoo
4 days ago
- Business
- Yahoo
Archer Aviation stock falls after raising $850m in direct offering
-- Archer Aviation Inc. (NYSE: NYSE:ACHR) stock fell 15% on Friday after the electric vertical takeoff and landing (eVTOL) aircraft maker announced it raised $850 million through a registered direct offering of 85 million shares at $10 per share. The capital raise comes shortly after the White House announced an Executive Order by President Trump to implement an eVTOL Integration Pilot Program aimed at accelerating deployment of these aircraft in the U.S. Despite the positive policy development, investors appeared concerned about the dilutive effect of the share issuance. Archer stated that the new capital strengthens its balance sheet, giving the company a pro forma liquidity position of approximately $2 billion. The funds will be used for general corporate purposes, with emphasis on building out commercial capabilities and infrastructure to support recently announced initiatives both domestically and in its "Launch Edition" markets, as well as developing an AI-based aviation software platform. CEO and founder Adam Goldstein called the Executive Order "a seminal moment for Archer and the eVTOL industry," noting that the company now has "the resources we need to execute both here in the U.S. and abroad." Archer plans to coordinate with the White House, Department of Transportation, and Federal Aviation Administration on integrating the pilot program into its operations ahead of the LA 28 Olympic Games, where it will serve as the Official Air Taxi Provider for the Games and Team USA. Next week, the company will showcase its Midnight aircraft at the Paris Air Show, hosting delegations from more than 20 countries, including leadership from partner organizations in the UAE, Archer's first target "Launch Edition" market. Moelis (NYSE:MC) & Company LLC acted as the exclusive placement agent for the offering. Related articles Archer Aviation stock falls after raising $850m in direct offering Charles Schwab stock falls after monthly report shows drop in new accounts RBC starts Air Products, Linde at Outperform on earnings recovery
Business Wire
5 days ago
- Business
- Business Wire
Archer Raises $850M Following White House Executive Order To Accelerate U.S. eVTOL Rollout, Cementing Its Industry-Leading Liquidity Position Of Approximately $2B
SANTA CLARA, Calif.--(BUSINESS WIRE)--Today Archer Aviation Inc. (NYSE: ACHR) raised an additional $850M following the White House's announcement last week of an Executive Order by President Trump to implement an eVTOL Integration Pilot Program in the United States. This program is focused on accelerating the deployment of eVTOL aircraft in the U.S. Archer intends to closely coordinate with the White House, Department of Transportation and the Federal Aviation Administration on how this can integrate into Archer's plans to ramp its operations in the U.S. ahead of the LA 28 Olympic Games at which Archer will serve as the Official Air Taxi Provider of the Olympic Games and Team USA. Archer believes cross-industry collaboration will be the key to the success of the eVTOL Integration Pilot Program and the U.S. achieving its goal of 'dominance' within this new category of aircraft. Next week, Archer will be at the Paris Air Show showcasing its Midnight aircraft and hosting delegations from more than 20 countries, including leadership from partner organizations in the UAE, Archer's first target 'Launch Edition' market. Archer CEO and founder Adam Goldstein is set to meet with the United States Secretary of Transportation, Sean P. Duffy, and acting FAA administrator, Chris Rocheleau, while at the show. Adam Goldstein, CEO and founder of Archer, said: 'This Executive Order is a seminal moment for Archer and the eVTOL industry. We now have the strongest balance sheet in the sector and the resources we need to execute both here in the U.S. and abroad. Archer's future couldn't be any brighter.' This new capital bolsters Archer's already strong balance sheet and cements the Company's position of leading the industry with a pro forma liquidity position of approximately $2B 1. With this fortress balance sheet, Archer is strategically positioned to execute across its engineering, certification and commercialization efforts, both in the United States and abroad. The financing provided for the purchase and sale of 85,000,000 shares of Archer's Class A common stock at a price of $10.00 per share in a registered direct offering. The net proceeds from the offering announced today will be used for general corporate purposes, with a focus on the build out of Archer's commercial capabilities, including infrastructure to support Archer's recently announced initiatives, both in the U.S. and Archer's 'Launch Edition' markets, and the development of an AI-based aviation software platform. The shares of Class A common stock were offered pursuant to an automatic shelf registration statement on Form S-3ASR (File No. 333-284812) filed with the United States Securities and Exchange Commission ('SEC') on February 11, 2025, which became automatically effective upon filing. Moelis & Company LLC is acting as the exclusive placement agent in connection with this offering. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of Archer, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. A prospectus supplement relating to the shares of Class A common stock will be filed by Archer with the SEC. About Archer Archer is designing and developing the key enabling technologies and aircraft necessary to power the future of aviation. To learn more, visit Forward-Looking Statements This press release contains forward-looking statements regarding Archer's future business plans and expectations, including the satisfaction of customary closing conditions related to the offering, Archer's expected use of proceeds, success of its certification and commercialization efforts in the U.S. and abroad, the effects of the executive order described above, and implementation of the eVTOL Integration Pilot Program. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors. The risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed in our filings with the SEC, including our most recent Annual Report on Form 10-K, most recent Quarterly Report on Form 10-Q and Form 8-K filed on June 13, 2025, which are or will be available on our investor relations website at and on the SEC website at In addition, please note that any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of the date of this press release. We undertake no obligation to update these statements as a result of new information or future events. Source: Archer Aviation Text: ArcherIR 1 Industry comparison is based on publicly available information as of June 12, 2025. Archer's pro forma liquidity position consists of: (i) its cash and cash equivalents on its balance sheet as of March 31, 2025; (ii) the additional gross proceeds it expects to receive at closing from today's financing; and (iii) the remaining amount available under its current at-the-market program. This estimate does not include up to ~$400M of additional capital from Stellantis to help scale Archer's manufacturing of its Midnight aircraft, which remains subject to entering into further definitive agreement(s) relating thereto.
