Flying Car Stocks: One Key Name You Should Be Watching
In recent weeks, Archer Aviation (NYSE:ACHR) has been a stock to watch. The company’s performance since May, when ACHR stock traded below $2 per share, is notable.
Now around the $7 per share level, ACHR stock has surged, as many investors side with company insiders, who continue to load up on its stock in recent weeks.
On a peak-to-trough basis over the past 52 weeks, the stock to watch has surged more than 360%. On a year-to-date basis, this number is closer to 250%. That’s some relative out performance worth considering, particularly for momentum investors in this increasingly volatile market.
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Archer’s impressive move comes as eVTOL companies come into focus. Archer gained FAA approval for flight tests, expected in early 2024, a potential catalyst for stock growth. Other peers have surged, but many still lag Archer’s incredible performance this year on this news.
While the future is always uncertain, the company has already secured key partnerships that give it a strong foundation for success. Let’s dive more into the company, its partnerships, and investor confidence in Archer Aviation.
Recent Updates and News
Archer Aviation stock has risen consistently, with 6-10% daily gains over a week, coinciding with executive share purchases, signaling confidence in future growth. Executives like COO Tom Muniz and CFO Mark Mesler invested approximately $246,000 on August 17.
Archer Aviation’s stock has surged 280% in 2023, driven by the upcoming launch of its Midnight electric flying vehicle, despite the company not yet generating revenue. The FAA certification for the Midnight allows limited airspace flight, with commercial operations expected to start in 2025.
Archer Aviation secured a $215 million investment from major players like Stellantis (NYSE:STLA), Boeing (NYSE:BA), United Airlines (NASDAQ:UAL), and ARK Investment Management.
This shows the company’s strong development potential, and I anticipate significant growth in ACHR stock once commercialization begins.
ACHR Fundamentals
In Q2, Archer Aviation had $407.6 million in cash, including $25 million from Stellantis credit. The lower cash burn of $67.3 million, down from the estimated $80 million, secures funding for six quarters ahead of the 2025 commercialization.
The deal with Boeing for autonomy tech and the $215 million investment from Stellantis, United Airlines, and Boeing are key highlights.
This could assist Archer in a world with pilot shortages, and they’ve resolved litigation with undisclosed terms. The $215 million investment comprises $70 million from Stellantis, with $145 million in new funds and $55 million un-drawn. This adds up to $677.6 million in cash, ensuring a 10-quarter runway for the path to 2025 commercialization.
Watch Out for September 12
Archer Aviation will reveal its Midnight eVTOL aircraft to the public soon at the Global Aerospace Summit in Washington, D.C., which is going on now.
CEO Adam Goldstein and Chief Safety Officer Billy Nolen will lead the presentation at the U.S. Chamber of Commerce event. Goldstein is excited about the event’s theme, focusing on the future of urban air mobility and industry collaboration.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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