Archer Aviation Inc. NYSE: Achr Promotions decreased by more than 7% in midday trade, as a market sale comes out on the third day. One of the catalysts of this move is the recent announcement of Archer that he received additional funding in the amount of 301.8 million dollars. USA, since the company promotes its platform for electric vertical take -off and landing (EVTOL), midnight.
The company began to build its original park midnight taxi for air taxis, which will be used in testing with the Federal Aviation Administration (FAA). Archer announced an increase in capital on February 13. At that time, Thomas Hughes from Marketbeat noted that “the injection of cash amounted to 35.5 million shares.” This type of dilution is not uncommon with such a preliminary company, such as Archer, but this limits the potential for market bulls.
Nevertheless, the slide in ACHR shares accelerated on February 18 at the next Sell The News event. This was the request of the Trump administration committee on reducing costs at the Ministry of Defense (DOD). Archer has a transaction for $ 148 million with US Air Force “to evaluate the transformational potential of VTOL technologies for DOD purposes.”
Any sales on this front, however, would seem short -sighted. Archer and his EVTOL platform, it seems, are the advanced aviation platform that the US military seek to deploy.
Correct move, wrong time
Aviation Aviation Aviation Aviation Forecast Today
$ 11.33
35.16% growthModerate purchase
Based on 9 analyst ratings
| High forecast | $ 15.00 |
|---|---|
| Average forecast | $ 11.33 |
| Low forecast | $ 4.50 |
Air Aviation Aviation
Investors who were associated with Archer Aviation were not surprised by the increase in capital. The company is still at the stage before the transition and needs capital to create on a scale. And the money raised by the company brings the company’s balance to about $ 1 billion.
As part of the company’s plans, now it has capital costs (CO) for a production facility in Covington, Georgia. On the scale, by 2030, Archer expects the plant to produce 650 aircraft a year. Nevertheless, 2030 may look like an eternity for some investors who note that the object is not completed, and the company is still faced with the approval of regulatory authorities. The latter remains probable, since the company is at the last stage of certification, but there are no guarantees.
Nevertheless, this step takes place at a time when investors are looking for any reason for sale. Despite the sale, ACHR shares have grown by more than 89% over the past 12 months, easily ahead of other aerospace shares. And with a short percentage, decreasing by 10.6% last month, but still 16.6%, it is not surprising that the bears prevail in the short term.
The device remains bull
The ARCher Aviation analyst is predicted to Marketbeat remains optimistic on ACHR shares. In fact, on February 21, Raymond James confirmed his excellent rating and raised the target price from 11 to $ 12. This is higher than the consensus assessment of 11.33 US dollars, which is 36.35% higher than the price of shares during the midday trade on February 24.
Without changes in the mood, which is unlikely, the last news for Archer is the event “New Sales”, which can change as quickly as for promotions.
Income can bring greater volatility for ACHR shares
Price Archer Aviation Inc. (Achr) on Monday, February 24, 2025.
About $ 8.28, ACHR shares fell below the 50-day sliding average and approach the level of support near the last minimum on January 14. If in the sphere of slices below, a 100-day sliding average can be at $ 7. The field but a positive report on earnings can arrest a slide.
Archer Aviation reports income on February 27. According to Archer, to report on the profit of negative 25 cents per share and income of 200 million. A net loss will be better than the negative 35 cents per share, which he reported in the same quarter in 2024. However, it shows that the company still remains several years from profitability.
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