Free Trial

Archer Aviation Stock Sees Surge in Institutional Buys

Archer announced today that they are well underway in constructing the Company’s first three conforming Midnight aircraft, with the first aircraft set to begin final assembly in the coming weeks. (Photo: Business Wire) Source: Archer Aviation

Key Points

  • Increases in institutional ownership highlight growing conviction among major investors regarding Archer Aviation's strategic direction and long-term value.
  • Archer Aviation's tangible progress, including its "Launch Edition" program and key FAA certifications, provides fundamental support for its growth narrative.
  • Strategic partnerships and advancements in manufacturing capabilities further solidify Archer Aviation's position as a leading contender in the evolving eVTOL market.
  • MarketBeat previews the top five stocks to own by May 1st.
Remove Ads

Archer Aviation's NYSE: ACHR stock has recently experienced turbulence due to market fluctuations and headlines concerning insider selling. However, a significant underlying trend suggests a more positive outlook.

Archer Aviation Today

Archer Aviation Inc. stock logo
ACHRACHR 90-day performance
Archer Aviation
$6.96 -0.16 (-2.18%)
As of 03:58 PM Eastern
This is a fair market value price provided by Polygon.io. Learn more.
52-Week Range
$2.82
$12.48
Price Target
$11.61

Regulatory filings show that institutional investors, also known as "smart money," have significantly increased their holdings in the electric vertical takeoff and landing (eVTOL) developer during the first quarter of 2025.

This increased institutional ownership, combined with Archer's tangible progress in commercializing its innovative Midnight aircraft, suggests a strengthening long-term outlook and counters the narrative of short-term market volatility. 

Archer Aviation's stock price climbed initially following the news of its "Launch Edition" phase and collaboration with Palantir, but it has cooled somewhat in recent trading.

While the company may have lost some of its initial spark, institutional investors are stepping in to initiate and top off their positions in preparation for commercialization.

In the big picture, the convergence of these factors presents a compelling opportunity for long-term investors to expand their portfolios and position themselves for future gains.

Following the Big Money

Recent 13F filings with the Securities and Exchange Commission (SEC) reveal a noteworthy pattern of accumulation in Archer Aviation stock by institutional players during the past two quarters. For example, Two Sigma Investments LP reported a dramatic increase in its holdings, boosting its position by over 3000% to hold more than 3 million shares valued at approximately $29.38 million at the time of filing.

Similarly, Nuveen Asset Management LLC significantly increased its stake by over 455%, holding nearly 3.24 million shares valued at $31.61 million. Wellington Management Group LLP also reported a substantial holding of over 1.63 million shares worth $15.91 million, while the California State Teachers Retirement System increased its position by a respectable 26.2%.

This heightened interest from large, sophisticated investors is often interpreted as a positive signal for a company's long-term prospects. Institutional investment typically follows extensive due diligence and reflects a belief in the underlying company's business model, management team, and growth potential.

Remove Ads

Unlike retail investors, who might react more quickly to short-term news or market sentiment, institutional investors generally adopt a longer investment horizon. Their willingness to increase exposure to Archer suggests a deep-seated conviction in the company's path toward commercialization and its potential to capture a significant share of the emerging eVTOL market.

The fact that nearly 60% of Archer's stock is held by institutional investors further underscores the considerable backing the company receives from these financial players.

Archer's Commercialization Advances Attract Big Money

Archer Aviation's growing institutional confidence is supported by its consistent progress towards commercialization. In its earnings report for the fourth quarter of 2024, the company posted earnings per share (EPS) of -$0.30, beating analyst expectations by $0.10, demonstrating effective cost management.

It also announced the initiation of its "Launch Edition" commercialization program, with Abu Dhabi Aviation as its first customer. This program aims to deploy Midnight aircraft in early adopter markets before full FAA certification is achieved in the United States markets.

Archer continues to make headway in regulatory compliance, securing Part 141 certification for its pilot training academy. This complements its existing Part 135 and Part 145 certificates, bringing it closer to full operational approval. Production of the first Midnight aircraft began in early 2025 at its Covington, Georgia facility, with a target of up to ten aircraft this year.

Strategic partnerships with major industry players further strengthen Archer's foundation. These achievements demonstrate Archer's commitment to its strategic plan and de-risk its path to market, which in turn is attracting more long-term institutional investors.

Archer's Market Standing and Analyst Sentiment

Archer Aviation Stock Forecast Today

12-Month Stock Price Forecast:
$11.61
70.13% Upside
Moderate Buy
Based on 9 Analyst Ratings
Current Price$6.83
High Forecast$15.00
Average Forecast$11.61
Low Forecast$4.50
Archer Aviation Stock Forecast Details

As of March 26, 2025, Archer shares were trading around $8.14, reflecting the recent market pullback.

Despite this dip, the stock has maintained a 200% gain over the past six months, highlighting the market's recognition of its long-term potential. 

Wall Street analysts, on balance, maintain a positive outlook. The consensus rating among nine analysts covering the stock remains a Moderate Buy. 

The average 12-month price target sits at $11.61, suggesting a potential upside of over 42% from the current trading price. This average reflects a range of views, with the highest target reaching $15.00 and the lowest at $4.50.

Several analysts boosted their price targets following the positive Q4 earnings report and commercialization updates. 

Why Archer's Institutional Backing Matters

The substantial increase in institutional ownership of Archer Aviation indicates a strong belief in the company's potential for long-term growth within the emerging eVTOL sector. This "smart money" movement aligns with Archer's significant strides toward commercialization. While pre-revenue companies in early adopter industries inherently face risks and market volatility, the growing institutional backing serves as a decisive vote of confidence.

For long-term investors interested in the future of transportation, Archer Aviation's blend of operational progress and increasing institutional investment presents a compelling opportunity. Continued observation of commercial milestones and regulatory developments will be essential for evaluating the evolving investment landscape.

Should You Invest $1,000 in Archer Aviation Right Now?

Before you consider Archer Aviation, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Archer Aviation wasn't on the list.

While Archer Aviation currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

The 10 Best Stocks to Own: Spring 2025 Cover

Discover the 10 best stocks to own in Spring 2025, carefully selected for their growth potential amid market volatility. This exclusive report highlights top companies poised to thrive in uncertain economic conditions—download now to gain an investing edge.

Get This Free Report
Jeffrey Neal Johnson
About The Author

Jeffrey Neal Johnson

Contributing Author

Retail and Technology Stocks

Like this article? Share it with a colleague.

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Archer Aviation (ACHR)
2.9241 of 5 stars
$6.96-2.2%N/A-5.27Moderate Buy$11.61
Compare These Stocks  Add These Stocks to My Watchlist 

Remove Ads

Featured Articles and Offers

7 Flying Car Stocks to Buy Before the Sector Really Takes Off

7 Flying Car Stocks to Buy Before the Sector Really Takes Off

Flying cars are coming sooner than you think! Investors are getting excited about this futuristic industry, and MarketBeat analyst Chris Markoch breaks down 7 flying car stocks poised to take off.

Related Videos

Goldman Sachs’ 2025 Market Outlook: Top 3 Stock Picks

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines

Remove Ads