TLDR
- ACHR fell 5.66% on Wednesday, closing at $5.50, with no company-specific negative news driving the drop.
- Rising Treasury yields (10-year hit ~4.84%, a near three-year high) and a broader risk-off move pressured growth stocks.
- ARK Invest bought 575,700 ACHR shares on September 8, worth around $3.35 million.
- Archer is down roughly 27% year to date and 14.1% since its last earnings report.
- Wall Street holds a Strong Buy consensus on ACHR with an average price target of $11.60, implying over 110% upside.
Archer Aviation fell 5.66% on Wednesday, closing at $5.50. The move came with no fresh negative news from the company itself.
The broader market was the main culprit. The Nasdaq dropped 0.6% and the Russell 2000 fell 1.37% as rising oil prices and climbing Treasury yields pushed investors away from riskier assets.
The 10-year U.S. Treasury yield rose to around 4.84%, its highest closing level in nearly three years. The move came after the Treasury’s planned $6 billion bond buyback disappointed markets.
Higher yields hit early-stage growth companies hard. Archer fits that profile exactly as it continues spending heavily on aircraft development, FAA certification, and commercialization, with no meaningful passenger revenue yet.
ACHR is now down about 27% year to date. The stock is also off 14.1% since its last earnings report on August 10, when it posted a loss of $0.34 per share while bringing in $5 million in revenue, well above the $1.94 million consensus estimate.
ARK Invest Steps In
Despite the selloff, Cathie Wood’s ARK Invest was a buyer. ARK purchased 575,700 ACHR shares on September 8 through its flagship ARK Innovation ETF, a transaction worth roughly $3.35 million at Tuesday’s closing price.
That buying came just before Wednesday’s decline, but it signals continued confidence from one of the stock’s more prominent institutional backers.
On the operational side, Archer recently kicked off its “No Roads” U.S. flight tour with its Midnight aircraft. The tour included a piloted round trip between Salinas and Hollister, California, part of its push to expand real-world flight testing.
Archer is also in the process of acquiring three Boeing subsidiaries: Wisk Aero, Insitu, and SkyGrid. In return, Boeing will receive a 16.75% equity stake in Archer. The deal is expected to add technology and capabilities to Archer’s platform.
Analyst Outlook
Wall Street’s view on Archer remains broadly positive. Six analysts have issued ratings in the past three months, giving ACHR a Strong Buy consensus with an average price target of $11.60. That implies upside of over 110% from Wednesday’s close.
Individual targets range from $12.00 at Canaccord Genuity to $18.00 at Wells Fargo. HC Wainwright and UBS both reaffirmed Buy-equivalent ratings on August 11.
That said, not everyone is on board. Weiss Ratings carries a Sell rating on the stock. The consensus is technically “Hold” when including all tracked analysts, with an average target of $11.50.
Insider activity has also raised some eyebrows. Over the past 90 days, insiders sold around $1.14 million worth of stock, including CFO Priya Gupta and insider Eric Lentell, though some sales were tied to tax withholding on vested equity awards.
ACHR was up about 1.4% in pre-market trading on Thursday.
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