Stellantis, a major holder of Archer Aviation (ACHR), recently bought 12,313,234 shares. The buy increased the fund’s stake by 66 percent, and came to a total cost of $70 million.
This is the first insider buy since June, when a company director bought 12,000 shares, paying $53,640. There was also a cluster of insider buys, including the company CEO and CFO, back in January. One major holder has been a steady seller of shares this year.
Overall, insiders own 31.6 percent of the air taxi company.
Shares are up nearly 80 percent over the past year, sharply reversing some of last year’s steep losses. The early stage company is still losing money, as it seeks regulatory approval to move to commercial flights in select markets.
While Archer has been burning through cash, the company is still cash rich, and can last for years without having to issue more shares or take on debt at today’s interest rates.
Action to take: Shares have pulled back sharply since the summer, and are likely set to rally into the end of the year. A speculative investment in Archer could see market-beating returns in the coming months.
For traders, shares look ready for a bounce higher. The January 2024 $6 calls, last going for about $0.50, could see mid-to-high double-digit gains on a year-end rally for shares.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.