Archer Aviation Has Lost Over Half Its Value. Is a Reverse Split Coming?
Key Points
Archer Aviation stock has seen a big pullback since hitting its lifetime high last October.
The stock is still well above the level likely to cause the company to do a reverse stock split.
Archer Aviation (NYSE: ACHR) went public by merging with special purpose acquisition company (SPAC) Atlas Crest Investments on Sept. 16, 2021. The stock saw many periods of volatile swings following its public debut, but it managed to hit a lifetime high of $14.62 per share in October 2025 thanks to new partnerships, patent acquisitions, and a successful demonstration of its Midnight electric vertical take-off and landing (eVTOL) aircraft. Unfortunately for shareholders, the stock has lost significant altitude since that point.
Archer Aviation's share price has fallen roughly 61% from its post-SPAC-merger high, and it's currently trading at under $6 per share. With the company's share price trading in that range, is the next-gen aviation specialist likely to pursue a reverse stock split?
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Image source: Archer Aviation.
Will Archer Aviation carry out a reverse stock split?
Companies typically carry out reverse stock splits when their share prices drop below the minimum threshold required to continue trading on either the Nasdaq or the New York Stock Exchange. If a stock trades below $1 per share for 30 consecutive days, it can be delisted from these exchanges. Delisting is almost always a negative valuation event, and companies will often opt for a reverse stock split to prevent it from taking place.
Even after some big valuation pullbacks, there is currently no immediate need for Archer Aviation to do a reverse stock split, as it is still well above the level required to continue trading on the New York Stock Exchange. While companies also sometimes opt to do a reverse split well in advance of potentially hitting the delisting danger zone because having a low pure-dollar share price can have psychological impacts, there's currently no reason to think that Archer will make this move.
Notably, the company's stock is poised for another major round of dilution, as it will issue new shares to Boeing in exchange for Boeing's Wisk Aero, Insitu, and SkyGrid subsidiaries. The deal will give Boeing a 16.5% stake in Archer, and the aerospace and defense giant will have the opportunity to purchase an additional $200 million in shares through warrants. On the other hand, the market actually had a very positive reaction to this deal -- bidding up Archer stock even though the acquisition will result in heavy stock dilution.
Archer is still generating relatively little revenue and posting sizable losses, and it's likely the company will continue to rely on new stock sales to fund its operations. Devaluation through dilution and potential sell-offs in response to underwhelming business performance could push the company's share price significantly below current levels, but a reverse split appears unlikely right now. The stock traded as low as $1.62 per share in December 2022, and the company didn't do a reverse split then -- so it probably won't do one in the near future unless its share price collapses.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing. The Motley Fool has a disclosure policy.