Archer Aviation Inc. (NYSE: ACHR) closed out the trading week on a positive note, with shares gaining 3.92% to settle at $6.36 on Friday. The stock posted a weekly advance of approximately 5.1%, climbing from the prior week's close of $6.05. However, in after-hours trading, shares edged slightly lower to $6.29.
U.S. equity markets will be closed on Monday, May 25, in observance of Memorial Day. The next regular trading session will take place on Tuesday, according to Intercontinental Exchange. Trading volume on Friday was robust, with nearly 79.3 million shares changing hands.
Investors are closely monitoring Archer's progress through the Federal Aviation Administration's type certification process for its Midnight aircraft. The company recently announced it has entered Phase 3 of the FAA's four-step certification framework and is actively working on Phase 4 testing. This final phase involves formal tests and analyses to demonstrate the aircraft meets airworthiness standards.
In its first-quarter earnings report released on May 11, Archer reported $1.6 million in revenue, but posted a net loss of $217.7 million and an adjusted EBITDA loss of $172.5 million. Adjusted EBITDA, which excludes interest, taxes, depreciation, amortization, and certain other costs, is often used by investors to compare operating performance but does not directly reflect cash burn. Founder and CEO Adam Goldstein described the quarter as a "banner quarter," emphasizing that the company is "far more than an air taxi company," highlighting progress in defense and artificial intelligence initiatives alongside its commercial aircraft program.
Analyst sentiment remains cautiously optimistic. According to MarketBeat, eight analysts covering Archer assign an average rating of "Moderate Buy," with five buy ratings, two holds, and one sell. The consensus one-year price target stands at approximately $11.83. Canaccord Genuity recently lowered its price target to $12 from $13 but maintained a buy rating following the earnings release.
Insider activity is also on investors' radar. On May 21, former officer Tosha Perkins filed an SEC Form 144 indicating plans to sell 50,000 Class A shares valued at $300,000. Form 144 allows affiliates to notify the market before selling restricted or control stock, potentially signaling a supply overhang.
Competition remains close in the eVTOL space. Joby Aviation is the primary publicly traded peer, while BETA Technologies is active through FAA pilot-program projects. Movements in these names may help investors discern whether Archer's recent gains are company-specific or part of a broader sector trend.
Risks are evident. Certification timelines could extend, spending may remain elevated, and insider selling or new share issuances could pressure a stock that still trades well below its 52-week high of $14.62. Archer ended the first quarter with approximately $1.8 billion in liquidity, but the key question for the coming week is whether that cash runway is sufficient to sustain operations amid persistent losses.
