Cathie Wood Buys Archer Aviation Stock Amidst $40M Purchase

Cathie Wood's ARK Invest purchased $40.28 million worth of Archer Aviation (ACHR) shares, while trimming its position in Kratos Defense and Security Solutions. Archer Aviation stock dropped 14.8% after announcing an $850 million direct stock offering. Analysts are divided on the company's long-term stock trajectory, with a Moderate Buy consensus rating and an average price target of $11.75.

ARK Invest, led by Cathie Wood, made substantial trades in Archer Aviation Inc. (ACHR) on Friday, June 15, 2025. The investment firm's ARK Innovation ETF (ARKK), ARK Autonomous Technology & Robotics ETF (ARKQ), and ARK Space Exploration & Innovation ETF (ARKX) collectively purchased 3,317,807 shares of Archer Aviation, valued at approximately $33.14 million at the closing price of the day [1].

On the same day, Ark Invest trimmed its position in Kratos Defense and Security Solutions Inc. (KTOS) by selling 46,941 shares, valued at around $1.96 million based on the closing price [1]. Additionally, Ark Invest's ARK Next Generation Internet ETF (ARKW) bought 200,137 shares of Nextdoor Holdings Inc. (KIND), with a trade value of approximately $304 thousand [1].

Archer Aviation's stock dropped 14.8% after the company announced an $850 million direct stock offering on Thursday, June 14, 2025 [3]. This offering involves selling 85 million shares of Class A common stock to institutional investors at $10.00 per share, with the offering expected to close on June 16, 2025 [3]. The capital raise will generate approximately $817.1 million in net proceeds after fees, boosting Archer's cash balance to approximately $1.8 billion [3].

Analysts are divided on Archer Aviation's long-term stock trajectory. While Cantor Fitzgerald maintains an Overweight rating with a price target of $13.00, H.C. Wainwright raised its price target to $18.00 from $12.00, reflecting increased revenue expectations from military and public safety sectors [3]. The Moderate Buy consensus rating and an average price target of $11.75 highlight the mixed sentiment among analysts [4].

Archer Aviation recently conducted a successful piloted test flight of its Midnight aircraft, achieving a cruising speed of 125 mph and an altitude of 1,500 feet [2]. The company also announced plans to collaborate with United Airlines to establish an air taxi network in New York City [4]. The Trump administration's executive orders supporting the electric air taxi industry and enhancing U.S. defense capabilities against hostile drones further bolster Archer Aviation's prospects [2, 4].

References:
[1] https://www.benzinga.com/markets/equities/25/06/45938001/cathie-woods-ark-invest-loads-up-on-archer-aviation-nextdoor-holdings
[2] https://finance.yahoo.com/news/why-shares-archer-aviation-took-231036205.html
[3] https://www.investing.com/news/analyst-ratings/archer-aviation-price-target-lowered-to-13-by-canaccord-on-capital-raise-93CH-4095515
[4] https://www.gurufocus.com/news/2926491/archer-aviation-secures-850-million-boost-amid-industry-support