Archer Aviation (ACHR) stock is moving higher again, rising nearly 7% on Wednesday and more than 12% over the past week. The rebound comes after a weak start to 2026, when the stock fell about 30% year-to-date and slipped well below its $10 highs. Now, a mix of policy support, regulatory progress, and large investor activity is starting to shift sentiment.
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FAA Progress and Policy Support Lifts Confidence
First, the biggest driver behind the recent move is clear progress with regulators. Archer said the Federal Aviation Administration has now accepted 100% of its Means of Compliance for its Midnight aircraft. This is a key step in the path to certification and brings the company closer to launch.
As the company noted on its earnings call, “FAA confirmed final acceptance of 100% of Midnight’s Means of Compliance,” which it views as a major milestone. With this step complete, Archer can move deeper into testing and validation.
At the same time, policy support is starting to build. The White House eVTOL pilot program is gaining attention, and Archer is seen as one of the companies that could benefit from early deployment efforts in the U.S. This adds a layer of credibility to the timeline for first passenger flights, which are still targeted for late 2026.
Meanwhile, Archer is also moving closer to real use cases. Its work with Hopscotch Air is focused on route design and service flow, which helps shift the story from concept to actual operations.
Institutional Buying and Valuation Gap Come Into Focus
In addition, large investors are stepping in. Sumitomo Mitsui Trust Group (SMFG) recently bought more than 1.4 million shares, which helped drive the latest rally. Institutional ownership has now moved above 50%, a level that often signals stronger long-term confidence.
Even so, some changes in filings created noise. The Vanguard Group reported 0 shares in a recent update, but this appears tied to an internal reporting shift rather than a full exit. In fact, Vanguard Index Funds still hold about 5.86% of the company, which keeps it among the largest holders.
At the same time, the broader ownership base remains well spread. Public companies and individual investors hold about 50.78% of shares, followed by ETFs, other institutions, mutual funds, and insiders.
As a result, the recent buying trend is being read as a signal that large investors see value after the pullback. Some models suggest the stock could be undervalued by as much as 80% based on long-term cash flow views.
However, the market is still weighing near-term risks. Archer remains a pre-revenue company and expects an adjusted EBITDA loss of about $160 million to $180 million. That keeps focus on cash use, even though the firm ended 2025 with about $2 billion in liquidity, which management called its “highest watermark.”
Overall, the story is starting to shift. On the one hand, the stock is still far from prior highs. On the other hand, steady progress with the FAA, growing policy support, and rising institutional interest are helping drive the current rebound.
Is ACHR Stock a Good Buy?
While Wall Street still holds a Strong Buy view, with an average ACHR stock price target of $13.20, the path to realizing the potential upside of about 117% depends more on clear progress than on long-term vision alone.
