Archer Aviation (ACHR) shares dropped 5.6% yesterday to close at $10.19. The move came ahead of the company’s earnings report, which is due after the market closes on August 11.
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Bullish Technical Signals
Trading volume in options was modest, with 97,000 contracts exchanged. Calls outpaced puts, bringing the put-call ratio to 0.5. That is higher than the recent average of 0.27 and may point to more demand for downside protection. At the same time, implied volatility for the next 30 days ticked up to 86.2%. Based on current prices, options are pricing in a 50% chance of a move greater than 12.1%, or about $1.23, following earnings.
Despite the pullback, Archer continues to show positive technical signals. The stock trades above its 20-day and 50-day exponential moving averages, which are at $9.80 and $8.16. The Moving Average Convergence Divergence (MACD) indicator reads 0.91, suggesting that momentum remains in a bullish zone.
TipRanks’ technical sentiment tool shows a Buy rating across both moving averages and trend indicators. Out of 22 signals, 12 are bullish, 6 are neutral, and 4 are bearish. All 8 moving average signals are currently in Buy territory. The steepening of the put-call skew may reflect some caution heading into earnings. While options volume was not heavy, the rise in downside hedging stands out following the stock’s recent strength.
Is Archer Aviation Stock a Good Buy?
Despite the stock’s speculative nature, Wall Street analysts remain optimistic about the company. Based on six recent ratings, Archer Aviation boasts a “Moderate Buy” consensus with an average 12-month price target of $11.75. This implies a 15.20% upside from the current price.
