Tosha Perkins, the Chief People Partnerships Officer at Archer Aviation Inc. (NYSE:ACHR), recently sold 150,000 shares of the company's Class A common stock. The shares were sold at a price of $6.40 each, amounting to a total transaction value of $960,000. Following this sale, Perkins holds 197,355 shares in the company. The stock, which has shown significant volatility according to InvestingPro data, is currently trading at $7.66, up nearly 20% from the insider sale price. The company maintains a strong financial position with more cash than debt on its balance sheet.
The transaction, dated December 3, 2024, was executed under a Rule 10b5-1 trading plan, which had been adopted earlier this year and amended in September. According to the filing, the sale was conducted to address certain tax liabilities and related costs stemming from a previous settlement of restricted stock units. With a market capitalization of $1.04 billion and an overall "FAIR" financial health rating from InvestingPro, which offers 12+ additional exclusive insights about ACHR's financial performance and outlook, the company appears to be trading near its Fair Value.
In other recent news, Archer Aviation has made substantial progress in the commercialization of its electric vertical takeoff and landing (eVTOL) aircraft, as revealed in its third quarter 2024 earnings call. The company reported a robust liquidity position with over $500 million in cash reserves and plans to expand into key markets such as New York, Los Angeles, San Francisco, Miami, UAE, and Japan. Furthermore, Archer Aviation's partnership with Stellantis (NYSE:STLA) was reinforced, with nearly $300 million received and an agreement for up to $400 million more to support manufacturing efforts.
The company is also progressing with the construction of a manufacturing facility in Covington, Georgia, targeting a production rate of two aircraft per month by the end of 2025. However, Archer's non-GAAP operating expenses for Q3 2024 were $96.8 million, with an expected increase to $95 million to $110 million in Q4 due to higher engineering and manufacturing costs. Despite these costs, Archer continues to receive strong demand for early aircraft delivery.
In other recent developments, Needham initiated coverage on Archer Aviation, giving the company a Buy rating. The firm expressed optimism about the company's future, citing the industry's momentum and Archer Aviation's capacity to fulfill its substantial aircraft order book. The firm also sees potential in the early-stage air taxi market, estimating a revenue opportunity of over $3 billion.
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