In the last year, many Archer Aviation Inc. (NYSE:ACHR) insiders sold a substantial stake in the company which may have sparked shareholders' attention.   When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations.  However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.    

While insider transactions are not the most important thing when it comes to long-term investing,  logic dictates you should pay some attention to whether insiders are buying or selling shares.

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.   While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price.  The silver lining is that this sell-down took place above the latest price (US$3.73).  So it is hard to draw any strong conclusion from it.  

Over the last year we saw more insider selling of Archer Aviation shares, than buying.    The chart below shows insider transactions (by companies and individuals) over the last year.  If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NYSE:ACHR Insider Trading Volume May 9th 2024

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.

Insider Ownership Of Archer Aviation

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own.  A high insider ownership often makes company leadership more mindful of shareholder interests.   Archer Aviation insiders own 24% of the company, currently worth about US$299m based on the recent share price.  I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.  

So What Does This Data Suggest About Archer Aviation Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much.      It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Archer Aviation insiders selling.       So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.    Every company has risks, and we've spotted 4 warning signs for Archer Aviation (of which 2 are significant!) you should know about.  

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.