Archer Aviation (ACHR) has been facing some challenges lately, with its stock plummeting by 34% over the past month and 26% since the start of the year. This decline has persisted despite ongoing progress in flight testing, new partnerships, and surprisingly strong third-quarter results. A significant concern is that Archer still hasn’t managed to produce substantial revenue, which may be testing market patience. Additionally, the protracted FAA approval process is putting pressure on the stock.
Things took a turn when Archer filed a prospectus to resell over 1 million shares on November 19, raising fears of dilution. Even with these immediate hurdles, many analysts remain hopeful. Canaccord, for instance, recently upped its price target from $12 to $13, holding on to a buy rating and noting that Archer’s licensing of its battery-electric powertrain could open up new income avenues. Given all of this, it feels like a good moment to reflect on who actually owns ACHR stock.
According to TipRanks’ ownership data, public firms and private investors collectively own 45% of ACHR. Insiders, ETFs, mutual funds, and other institutional investors make up the rest at 24.28%, 20.44%, 8.29%, and 1.99%, respectively.
Examining ACHR’s ownership breakdown
Looking deeper into the major shareholders, Stellantis NV holds the largest portion of ACHR with a 9.29% stake, while Mark E. Lohr possesses around 8.70% of the stock.
When it comes to ETFs, the Ark Innovation ETF (ARKK) has a 3.02% share of Archer Aviation, and the SPDR S&P Aerospace & Defense ETF (XAR) follows with 2.73%.
On the mutual fund side, the Vanguard Index Fund owns about 4.63% of ACHR, and Fidelity Salem Street Trust holds 0.91% of the shares.
Is investing in Archer Aviation stock a wise choice?
Despite the considerable drop in the stock price recently, analysts at TheStreet are still bullish about Archer’s future. With four buy ratings and one hold, Archer Aviation enjoys a “Strong Buy” consensus, boasting an average price target of $12.40, suggesting a potential upside of 72.70% from its current valuation.
