Archer Aviation (ACHR) is steadily laying the groundwork for next-gen city transit, striking deals and forming partnerships around the world with what appears to be a focused strategy. Still, the future can’t arrive fast enough. Until commercialization becomes real, the stock remains a speculative play. Yesterday’s trading session proved just that, as shares of ACHR fell $1.44 to $11.85, down 10.84%, with an added premarket drop to $11.45. The sell-off occurred amid heavy options activity, with 204,000 contracts changing hands.
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Call volume continued to outpace puts, with a put/call ratio of 0.47. That is higher than the typical 0.25, signaling more hedging despite bullish speculation. Implied volatility dropped sharply, falling 12.62 points to 86.96, but remains elevated versus historical norms. Options are pricing daily swings of $0.65, and skew data shows rising demand for downside protection.
Manufacturing Moves, Market Waits
Just a few days ago, CEO Adam Goldstein highlighted the company’s acquisition of an advanced composite manufacturing facility in Long Beach, which occurred in May. “We continue to believe that investing in key advanced manufacturing capabilities here in the U.S. is the right approach,” he wrote. The deal aims to reduce costs on the Midnight aircraft and speed up development of new variants, including for defense. The move reflects Archer Aviation’s focus on deeper U.S. manufacturing as it scales.
For now, Archer Aviation is moving fast on vision, but the market is waiting on execution. Until timelines firm up and revenue starts to take shape, volatility may remain part of the journey.
Is Archer Aviation Stock a Good Buy?
Despite the stock’s decline, 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 0.84% downside from the current price.
