Cathie Wood Buys the Dip in Archer Aviation Stock With a $40M Purchase

Cathie Wood’s ARK Invest leveraged the dip in Archer Aviation (ACHR) stock, adding $40.28 million worth of shares in the aviation company on Friday, June 13. Wood purchased 3,433,807 shares of the electric vertical take-off and landing (eVTOL) aircraft manufacturer through three funds.

The Ark Innovation ETF (ARKK) acquired 2,830,022 shares of Archer Aviation, while the Ark Autonomous Technology & Robotics ETF (ARKQ) bought another 463,149 shares of ACHR, and the Ark Space Exploration & Innovation ETF (ARKX) purchased 140,636 shares of the company.

At the same time, Wood continued to trim the fund’s position in the defense sector by selling a total of 46,941 shares of Kratos Defense and Security Solutions (KTOS) for $1.94 million.

Why Did ACHR Drop?

Archer Aviation stock plunged 14.8% on Friday after the company announced an $850 million direct stock offering priced at $10 per share. Shareholders dumped ACHR stock in response to the impending dilution from the additional share sale. Archer Aviation has set ambitious targets ahead of the LA 28 Olympic Games, at which it is expected to serve as the Official Air Taxi Provider for the Olympic Games and Team USA.

Moreover, President Donald Trump issued an Executive Order last week to implement an eVTOL Integration Pilot Program in the U.S., and Archer Aviation stands to benefit significantly as one of the few eVTOL companies.

Is ACHR a Buy, Sell, or Hold?

Analysts remain divided on Archer Aviation’s long-term stock trajectory. On TipRanks, ACHR stock has a Moderate Buy consensus rating based on four Buys and two Hold ratings. Also, the average Archer Aviation price target of $11.75 implies 17.6% upside potential from current levels. Meanwhile, ACHR stock has already gained more than 215% in the past year.

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