Owning 33% shares,institutional owners seem interested in Archer Aviation Inc. (NYSE:ACHR),
In This Article:
Key Insights
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Significantly high institutional ownership implies Archer Aviation's stock price is sensitive to their trading actions
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The top 6 shareholders own 50% of the company
A look at the shareholders of Archer Aviation Inc. (NYSE:ACHR) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 33% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.
Let's take a closer look to see what the different types of shareholders can tell us about Archer Aviation.
View our latest analysis for Archer Aviation
What Does The Institutional Ownership Tell Us About Archer Aviation?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
Archer Aviation already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Archer Aviation's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Archer Aviation. Stellantis N.V. is currently the company's largest shareholder with 17% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 9.7% and 7.8%, of the shares outstanding, respectively. Adam Goldstein, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.