This Archer Aviation Insider Reduced Their Stake By 14%

Archer Aviation Inc. Class A Common Stock -0.77% Pre

Archer Aviation Inc. Class A Common Stock

ACHR

3.86

3.86

-0.77%

0.00% Pre

Looking at Archer Aviation Inc.'s (NYSE:ACHR ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Archer Aviation

Archer Aviation Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Brett Adcock, for US$3.7m worth of shares, at about US$5.30 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$6.14. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 14% of Brett Adcock's holding. Brett Adcock was the only individual insider to sell over the last year.

Over the last year, we can see that insiders have bought 113.96k shares worth US$316k. But they sold 693.58k shares for US$3.7m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NYSE:ACHR Insider Trading Volume December 30th 2023

I will like Archer Aviation better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Archer Aviation Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Archer Aviation shares. Specifically, insider Brett Adcock ditched US$3.7m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership Of Archer Aviation

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Archer Aviation insiders own 26% of the company, worth about US$485m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Archer Aviation Insiders?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Archer Aviation has 5 warning signs (and 2 which are potentially serious) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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