Archer Aviation (NYSE:ACHR) stock is in full focus following the submission of an amended Schedule 13D from founder Brett Adcock. A Schedule 13D documents the positions of shareholders who have an ownership stake of at least 5%. Adcock’s past Schedule 13D filings have shown a steady stream of sales since 2021.
In the filing, Adcock disclosed ownership of 11.51 million shares of ACHR stock as of Aug. 23, which is equivalent to a 5.5% ownership stake. Adcock’s share count is down by 8.6% from his last reported 13D, which showed ownership of 12.6 million shares as of June 27. His last transaction occurred on Aug. 23, when he converted 500,000 shares of Class B stock into Class A stock and subsequently sold them on the open market at an average price of $7.29 per share.
In September 2021, Adcock reported a stake of 37.01 million shares. Since January 2023, Adcock’s position has dwindled from 28.55 million shares to 11.51 million shares, reflecting a reduction of 17.03 million shares. Meanwhile, ACHR stock is up by more than 250% so far this year.
ACHR Stock: Founder Brett Adcock Sells Shares
So, why exactly is Adcock selling some of his shares? 13D filers are not required to disclose the reasoning behind their buys or sales. However, Adcock has a history of entrepreneurship and is currently the CEO of Figure, an artificial intelligence (AI) company he founded in 2022. It could be possible that he is using the proceeds from the sale to fund Figure. It could also be possible that he is losing faith in ACHR stock, or that he just wants to buy a new house. The point is that it is impossible to pinpoint the actual reason for the sales unless he discloses it.
In the past year, insiders have purchased $316,485 worth of ACHR while selling $48.37 million worth. Since Archer became publicly traded, insiders have purchased $11.91 million worth of shares while cashing out $60.69 million worth. The most recent insider purchase is attributable to Director Deborah Diaz, who purchased 12,000 shares at an average per share price of $4.47 on June 13.
It’s clear that insiders have been cashing out amid Archer’s generous gains this year. This doesn’t necessarily mean that they have lost faith in the company, although it isn’t a positive signal either.
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.
