Who’s bullish on Archer Aviation (NYSE:ACHR) stock? Stellantis (NYSE:STLA) certainly is. The automotive manufacturing giant recently filed a Form 4 revealing a $15.63 million insider purchase. Stellantis is considered an insider of Archer due to its status as a 10% owner of the company.
Between March 4 and March 7, Stellantis acquired 3.6 million shares of ACHR stock at average prices ranging between $4.22 and $4.51. The firm’s largest purchase was on March 6, when it picked up 1.07 million shares.
In total, the transaction was worth $15.63 million. Following the purchase, Stellantis now owns a total of 34.65 million shares.
ACHR Stock: Stellantis Buys 3.6 Million Shares
This purchase marks Stellantis’ second insider buy of ACHR stock within the past six months. The company acquired 12.31 million shares at an average price of $5.68 per share on Oct. 16. These shares are in the red, as Archer currently trades in the high $4 range.
Stellantis has a deep connection with Archer, as it agreed to manufacture Archer’s electric vertical takeoff and landing (eVTOL) Midnight aircraft back in January 2023. Its partnership with Archer dates back to 2020.
The agreement between the two companies stated that Stellantis would provide Archer with up to $150 million in equity capital in 2023 and 2024 based on milestone achievements.
“Deepening our partnership with Archer as a strategic investor with plans for growing our shareholding demonstrates how Stellantis is pushing the boundaries to provide sustainable freedom of mobility, from the road to the sky,” said Stellantis CEO Carlos Tavares.
Last month, Archer announced that the Midnight had received the Part 145 certification from the Federal Aviation Administration (FAA), allowing it to manage a repair and maintenance station. Archer founder and CEO Adam Goldstein characterized the certificate as a “major vote of confidence from the FAA.”
In its fourth-quarter earnings, Archer revealed that the Midnight is in the final phase of its certification program and that it will be ready for launch by 2025. Revenue for the quarter tallied in at $0 compared to $0 a year ago. For the first quarter, the company expects between $100 million and $120 million of GAAP operating expenses.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
