Rivian Automotive (NASDAQ:RIVN) Shares Down 2.4% - Should You Sell?

Key Points

• Rivian shares fell 2.4% to $16.33 on trading volume below the recent average, while the stock’s 50-day and 200-day moving averages stood at $16.49 and $15.86, respectively.
• Analyst sentiment is mixed: 12 analysts rate Rivian a Buy, eight a Hold and seven a Sell, producing a consensus “Hold” rating and a $19.05 price target.
• Rivian exceeded quarterly expectations with revenue of $1.66 billion and an adjusted loss of $0.47 per share, but it remains unprofitable with a negative 54.96% net margin; insiders sold 84,008 shares worth roughly $1.37 million over the past quarter.

Rivian Automotive, Inc. (NASDAQ:RIVN - Get Free Report)'s stock price traded down 2.4% during trading on Wednesday . The company traded as low as $15.92 and last traded at $16.33. Approximately 19,010,285 shares were traded during trading, a decline of 38% from the average session volume of 30,490,676 shares. The stock had previously closed at $16.74.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on RIVN. Benchmark reaffirmed a "buy" rating and issued a $25.00 price target on shares of Rivian Automotive in a research note on Friday, May 1st. UBS Group boosted their price objective on Rivian Automotive from $16.00 to $17.00 and gave the stock a "neutral" rating in a research note on Thursday, July 9th. BNP Paribas Exane upped their price objective on shares of Rivian Automotive from $22.00 to $24.00 and gave the company an "outperform" rating in a report on Wednesday, July 8th. Royal Bank Of Canada upped their price objective on Rivian Automotive from $14.00 to $16.00 and gave the company a "sector perform" rating in a report on Friday, July 31st. Finally, Wells Fargo & Company boosted their price objective on shares of Rivian Automotive from $15.00 to $16.00 and gave the company an "equal weight" rating in a report on Friday, July 31st. Twelve analysts have rated the stock with a Buy rating, eight have given a Hold rating and seven have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $19.05.

Rivian Automotive Price Performance

The company's 50-day simple moving average is $16.49 and its 200-day simple moving average is $15.86. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.65 and a current ratio of 2.10. The company has a market capitalization of $23.64 billion, a PE ratio of -6.33 and a beta of 1.61.

Rivian Automotive (NASDAQ:RIVN - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The electric vehicle automaker reported ($0.47) earnings per share for the quarter, topping the consensus estimate of ($0.66) by $0.19. Rivian Automotive had a negative return on equity of 73.90% and a negative net margin of 54.96%.The firm had revenue of $1.66 billion during the quarter, compared to the consensus estimate of $1.52 billion. During the same period last year, the company earned ($0.97) earnings per share. The company's revenue for the quarter was up 27.2% on a year-over-year basis. As a group, sell-side analysts anticipate that Rivian Automotive, Inc. will post -2.98 earnings per share for the current year.

Insider Activity at Rivian Automotive

In other Rivian Automotive news, CFO Claire Mcdonough sold 8,023 shares of the business's stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $16.00, for a total transaction of $128,368.00. Following the completion of the sale, the chief financial officer owned 819,178 shares of the company's stock, valued at approximately $13,106,848. The trade was a 0.97% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Karen Boone sold 20,000 shares of the business's stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $20.00, for a total transaction of $400,000.00. Following the sale, the director owned 110,000 shares of the company's stock, valued at approximately $2,200,000. This represents a 15.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 84,008 shares of company stock valued at $1,369,594 over the last quarter. Insiders own 1.48% of the company's stock.

Institutional Trading of Rivian Automotive

Several institutional investors have recently added to or reduced their stakes in the stock. Newbridge Financial Services Group Inc. boosted its holdings in shares of Rivian Automotive by 113.6% in the 2nd quarter. Newbridge Financial Services Group Inc. now owns 1,880 shares of the electric vehicle automaker's stock valued at $26,000 after buying an additional 1,000 shares during the period. Core Wealth Advisors LLC acquired a new position in Rivian Automotive during the 4th quarter worth $27,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new stake in Rivian Automotive in the third quarter worth about $31,000. Zions Bancorporation National Association UT bought a new stake in Rivian Automotive during the fourth quarter worth approximately $33,000. Finally, Oslo Pensjonsforsikring AS bought a new position in Rivian Automotive during the first quarter valued at about $39,000. 66.25% of the stock is owned by institutional investors and hedge funds.

About Rivian Automotive

Rivian Automotive, Inc is an American automotive technology company specializing in the design, development and manufacture of electric vehicles. The company is best known for its all-electric R1 platform, which underpins the R1T pickup truck and R1S sport utility vehicle. In addition to consumer products, Rivian has secured a significant commercial contract to produce electric delivery vans for a leading e-commerce provider, underscoring its capability to serve both retail and fleet customers.

Founded in 2009 by engineer and entrepreneur Robert “RJ” Scaringe, Rivian has grown from a research-focused startup into a publicly traded corporation.

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