Archer Aviation Stock (ACHR) Slides Ahead of Earnings

Archer Aviation Inc. (NYSE: ACHR) is heading into its earnings release today, with its stock under significant pressure. Trading at $9.64 per share in the pre-market session, ACHR has seen a concerning 29.84% decline in over the past month, although this is only part of the story.

Over the past 12 months, the stock has added 198%, with the end of 2024 proving to be particularly fruitful for bulls.

Analysts anticipate that ACHR will report an EPS of -$0.20, slightly improved from the – $0.23 recorded a year ago, signaling a modest reduction in losses as the company continues to develop its electric aircraft technology. Revenue is expected to remain minimal at around $400,000, showing no year-over-year growth, consistent with the firm’s pre-commercial stage of operations.

One significant factor influencing market sentiment has been the recent insider stock sale by Archer's General Counsel, Eric Lentell. On June 30th, Lentell sold 95,896 shares of Class A common stock at $10.60 per share, totaling approximately $1 million. While the sale was executed under a pre-arranged Rule 10b5-1 trading plan for tax and estate planning purposes, its impact on market perception was undeniably negative.

The market reacted swiftly, with ACHR shares closing down 8.94% on the day of the announcement. Insider sales often raise concerns about executive confidence in the company's future prospects, adding to the downward pressure on the stock.

Adding to the complexity, Archer's upcoming earnings release on November 6, 2025, looms large. Analysts currently have a consensus “Moderate Buy” rating for ACHR, with an average 12-month price target of $11.75. This target suggests potential upside from the current price; however, the recent stock performance indicates that the markets are approaching the earnings release with caution. The market's sensitivity to earnings news, especially for high-growth companies like Archer, is heightened by prevailing economic uncertainties and sector-specific challenges.

Despite the recent decline, Archer has several positive catalysts in its favor. The company's strategic partnership with KakaoMobility in South Korea, announced in May 2024, represents a significant step in its international expansion. KakaoMobility, with its 30 million users on the Kakao T mobile app, will own and operate Archer's Midnight aircraft, aiming to offer air taxi services as early as 2026.

Furthermore, Archer's joint venture, Soracle, formed with Japan Airlines and Sumitomo Corporation, was selected to lead air taxi services in Osaka Prefecture. Being the only U.S. eVTOL manufacturer chosen for Osaka's air taxi initiative underscores Archer's competitive advantage and potential in the Asian market. These international collaborations signal strong demand for Archer's technology and vision.

Stellantis' increased investment in Archer Aviation by an additional $55 million in July 2024 further reinforces confidence in the company's ability to bring its eVTOL aircraft to market. This investment, following Archer's achievement of its transition flight test milestone, demonstrates Stellantis' long-term commitment to the partnership and Archer's success. The expansion of manufacturing facilities in California, supported by approval from the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA), also positions Archer to scale production and meet future demand.

While the prevailing sentiment suggests caution, Archer's fundamental story remains intact, The company is a leader in the burgeoning eVTOL market, with significant partnerships, technological advancements, and financial backing.

Looking ahead, Archer's ability to manage its cash burn, secure further funding, and navigate regulatory hurdles will be crucial for its success. The company's earnings release will provide valuable insights into its financial health, operational progress, and future outlook.

One should pay close attention to management's guidance and commentary on key milestones, such as aircraft certification and commercialization plans.