Shareholders May Not Overlook Archer Aviation Insiders Selling US$943k In Stock

Last week, Archer Aviation Inc.'s (NYSE:ACHR) stock jumped 19%, but insiders who sold US$943k worth of stock in over the past year are likely to be in a better position. Selling at an average price of US$5.90, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Archer Aviation

Archer Aviation Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Marc Lore, sold US$943k worth of shares at a price of US$5.90 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$3.89. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Marc Lore.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Archer Aviation better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Archer Aviation Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Archer Aviation insiders own 18% of the company, currently worth about US$303m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Archer Aviation Insiders?

The fact that there have been no Archer Aviation insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Archer Aviation, we can't say the same about the selling of shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Archer Aviation has 3 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.

But note: Archer Aviation may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.