Archer Aviation Shares Plummet 1.1% on Boeing Deal Dilution Concerns

Archer Aviation shares dipped 1.1% on Tuesday after its deal with Boeing raised concerns about dilution.

The agreement, which is expected to close before the end of the year pending approvals, will see Boeing obtain new shares equivalent to 19.75% of Archer's Class A share count prior to closing.

This represents a significant change in ownership for current shareholders, who would hold approximately 83.5% after the transaction.

Despite the dilution concerns, analysts remain optimistic about the deal, with five out of six recommending buying shares and an average price target of $11.60, representing an 83.5% premium to Tuesday's closing price.