Archer Aviation Slides 2.3% as Q3 Loss Widens to $0.35 Per Share

Archer Aviation fell 2.3% to $4.70 in Tuesday trading after reporting a third-quarter loss of $0.35 per share, missing the consensus estimate of $0.34 by one cent. The loss also marks a sharp widening from the $0.20 per share deficit recorded in the same quarter a year earlier. By Sophie Lindqvist.

The session was not quiet. Roughly 40.9 million shares changed hands, an increase of 18% from the average volume of 34.6 million, according to MarketBeat data. The stock, which had closed at $4.81, traded as low as $4.34 before recovering.

The numbers tell a familiar story for a pre-revenue-scale aerospace developer: progress on the top line, persistence on the bottom one.

What went wrong — and what did not

Quarterly revenue came in at $5.10 million, comfortably above the $3.57 million consensus estimate. Archer also guided fourth-quarter revenue to between $5 million and $6 million, slightly ahead of the $4.9 million analysts expected.

The cash position is the more consequential figure. Archer ended the quarter with approximately $1.4 billion in cash, which the company says funds its development and launch efforts. Its balance sheet shows a debt-to-equity ratio of 0.06 and a quick ratio (a measure of short-term liquidity) of 10.21.

On the regulatory front, Archer received an FAA market survey certificate for its Midnight aircraft, enabling piloted operations in Los Angeles. The company says this supports its plans to act as the city's air-taxi operator for the 2028 Olympics. This is a meaningful step. It is not, however, final type certification (the FAA's full airworthiness approval) nor authorization for commercial passenger service.

Archer also said its Boeing transaction is nearing a close, potentially adding a major strategic shareholder and expanding its defense business. The company targets 2027 for passenger service, though execution and regulatory milestones remain.

How did analysts respond?

Several firms lowered their price targets while keeping positive ratings:

• Needham cut its target from $9.00 to $7.00, maintaining a "buy" rating.
• Cantor Fitzgerald reduced its target from $11.00 to $10.00, with an "overweight" rating.
• Deutsche Bank lowered its target to $10.

UBS Group restated an "overweight" rating on August 11, and HC Wainwright reissued a "buy" the same day. Wells Fargo set an $18.00 target price, also on August 11.

The overall picture is mildly positive but cooling. Six analysts rate the stock a Buy, one a Hold and one a Sell, producing a consensus rating of "Moderate Buy" and a consensus target of $11.00, per MarketBeat. The reductions reflect more cautious near-term expectations rather than a loss of conviction.

What are insiders doing?

Insider Eric Lentell sold 100,000 shares on August 20 at an average price of $6.31, for a total of $631,000. The sale left him with 85,011 shares, a 54.05% reduction in his ownership, executed under a pre-arranged Rule 10b5-1 trading plan (a schedule set in advance to avoid insider-trading concerns).

CFO Priya Gupta sold 10,015 shares on August 17 at an average of $6.41, totaling $64,196.15, to cover tax withholding obligations related to the vesting of equity awards. She retains 202,784 shares valued at roughly $1.3 million. Over the past ninety days, insiders sold 176,657 shares worth $1,122,371. Insiders own 5.55% of the stock.

Are institutions buying?

Several institutional investors increased their positions in the third quarter:

• Voya Investment Management lifted its stake by 48.2%, adding 3,289,910 shares to reach 10,118,847 shares worth $50,291,000.
• Public Sector Pension Investment Board opened a new position worth $2,803,000.
• HighTower Advisors increased its holdings by 37.4% to 228,693 shares worth $1,137,000.
• Cibc World Market grew its position by 43.0% to 19,626 shares worth $98,000.
• Global Retirement Partners raised its stake by 37.1% to 8,472 shares worth $42,000.

Institutional investors own 59.34% of the company.

What does the balance sheet say?

Archer, based in San Jose, California, develops electric vertical takeoff and landing (eVTOL) aircraft for short urban passenger routes. Its primary aircraft, Midnight, carries four passengers and a pilot.

The market capitalization stands at $3.62 billion, with a price-to-earnings ratio of -4.35 — negative, as the company remains loss-making — and a beta (sensitivity to market moves) of 3.59. The 50-day moving average is $4.85; the 200-day average is $5.71. The stock now sits below both.

The verdict from Tuesday's session: revenue beats buy goodwill, but widening losses spend it. Archer's cash runway and FAA progress are real. So is the patience the market will need through 2027.