Archer Stock Story

ACHR -  USA Stock  

USD 3.98  0.02  0.50%

The next fiscal quarter end is expected on the 31st of December 2021. The stock is currently experiencing an active upward rally. While some of us are excited about industrials space, let's try to sum up Archer Aviation in greater detail to make a better evaluation of its fundamental indicators. We will evaluate why we are still confident in anticipation of a recovery. Will retail investors continue to hold, or should we expect a sell-off?
Published over three months ago
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Are Archer Aviation (NYSE:ACHR) weak technical indicators contributing to the latest fall?
Archer Aviation is UNDERVALUED at 8.61 per share with modest projections ahead.
Archer Aviation secures Sharpe Ratio (or Efficiency) of -0.0709, which signifies that the company had -0.0709% of return per unit of standard deviation over the last 3 months. Macroaxis philosophy in foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Archer Aviation exposes twenty-seven different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Archer Aviation risk adjusted performance of (0.045636), and Mean Deviation of 3.23 to double-check the risk estimate we provide.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Archer Aviation income statement, its balance sheet, and the statement of cash flows. Potential Archer Aviation investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Archer Aviation investors may use each financial statement separately, they are all related. The changes in Archer Aviation's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Archer Aviation's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Archer Aviation fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Archer Aviation performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Archer Aviation shares is the value that is considered the true value of the share. If the intrinsic value of Archer is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Archer Aviation.
Please read more on our fundamental analysis page.

What is Archer Asset Breakdown?

Archer Aviation reports assets on its Balance Sheet. It represents the amount of Archer resources that either has an existing economic value or will provide some form of benefits in the future. To get a better handle on how balance sheet or income statements item affect Archer volatility, please check the breakdown of all its fundamentals

Are Archer Aviation Earnings Expected to grow?

The future earnings power of Archer Aviation involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Archer Aviation factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Archer Aviation stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Archer expected earnings.

What is the case for Archer Aviation Investors

Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Archer Aviation is not uncomon. Institutional investors typically avoid acquiring a high percentage of Archer Aviation stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of Archer is distributed among investors.

Ownership Allocation

Archer Aviation retains a total of 156.99 Million outstanding shares. Archer Aviation retains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Remember, it does not matter who owns the company or if the company is currently losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.


Retail Investors
42.15%
Insiders
30.68%
Institutions
27.17%
Retail Investors42.15
Insiders30.68
Institutions27.17

Asset Utilization

The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The latest return on assets of Archer connotes not a very effective usage of assets in December.


Current Assets
33.5 M
Current Assets33.45 Million89.23
Assets Non Current3.59 Million9.58
Goodwill447,3681.19

Over 3 percent spike for Archer Aviation. What does it mean for retail investors?

The mean deviation is down to 3.23 as of today. Archer Aviation exhibits very low volatility with skewness of 0.49 and kurtosis of 2.61. However, we advise investors to further study Archer Aviation technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Archer Aviation's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Archer Aviation's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Archer Aviation Implied Volatility

Archer Aviation's implied volatility exposes the market's sentiment of Archer Aviation stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Archer Aviation's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Archer Aviation stock will not fluctuate a lot when Archer Aviation's options are near their expiration.

While some other companies in the aerospace & defense industry are either recovering or due for a correction, Archer Aviation may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 25th of December 2021, we see that Archer Aviation almost mirrors the market. The enterprise is undervalued with above average odds of financial distress within the next 24 months. Our present 90 days advice on the enterprise is Cautious Hold.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Archer Aviation. Please refer to our Terms of Use for any information regarding our disclosure principles.

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