Rivian Automotive (NASDAQ:RIVN) Shares Down 5.5% - Here's What Happened

Key Points

• Rivian shares fell 5.5% to $12.80 in Thursday midday trading, with volume 13% below its daily average.
• Analyst sentiment is mixed: MarketBeat reports an average Hold rating and a $19.50 average price target, with 15 Buy, six Hold, and five Sell ratings.
• In its latest reported quarter, Rivian’s loss per share was narrower than expected ($0.48 versus $0.64 forecast), while revenue of $2.15 billion topped estimates and rose 38.3% year over year.

Rivian Automotive, Inc. (NASDAQ:RIVN - Get Free Report)'s share price was down 5.5% during mid-day trading on Thursday. The stock traded as low as $12.78 and last traded at $12.80. 25,690,583 shares changed hands during mid-day trading, a decline of 13% from the average daily volume of 29,416,779 shares. The stock had previously closed at $13.54.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the stock. Citigroup began coverage on shares of Rivian Automotive in a research report on Monday, September 14th. They set a "hold" rating and a $18.00 target price on the stock. Piper Sandler raised shares of Rivian Automotive from a "neutral" rating to an "overweight" rating and increased their price target for the company from $18.00 to $20.00 in a report on Monday, July 27th. DA Davidson decreased their price target on shares of Rivian Automotive from $17.00 to $15.00 and set a "neutral" rating on the stock in a research report on Friday, November 6th. Yorkville Ives started coverage on shares of Rivian Automotive in a report on Tuesday, October 6th. They set an "outperform" rating and a $20.00 price objective on the stock. Finally, Cantor Fitzgerald dropped their price objective on shares of Rivian Automotive from $19.00 to $16.00 and set a "neutral" rating on the stock in a report on Friday, October 30th. Fifteen analysts have rated the stock with a Buy rating, six have assigned a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $19.50.

Rivian Automotive Price Performance

The company has a market cap of $18.68 billion, a price-to-earnings ratio of -5.69 and a beta of 1.64. The company has a fifty day moving average price of $14.08 and a two-hundred day moving average price of $15.37. The company has a current ratio of 2.18, a quick ratio of 1.70 and a debt-to-equity ratio of 0.78.

Rivian Automotive (NASDAQ:RIVN - Get Free Report) last issued its earnings results on Thursday, October 29th. The electric vehicle automaker reported ($0.48) EPS for the quarter, beating analysts' consensus estimates of ($0.64) by $0.16. The business had revenue of $2.15 billion during the quarter, compared to analyst estimates of $2 billion. Rivian Automotive had a negative return on equity of 69.68% and a negative net margin of 45.88%. Rivian Automotive's revenue was up 38.3% on a year-over-year basis. During the same period in the prior year, the company posted ($1.08) earnings per share. As a group, equities research analysts anticipate that Rivian Automotive, Inc. will post -2.72 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Michael John Callahan sold 15,000 shares of the firm's stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $15.00, for a total transaction of $225,000.00. Following the completion of the transaction, the insider directly owned 1,001,776 shares of the company's stock, valued at approximately $15,026,640. This trade represents a 1.48% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Claire McDonough sold 13,144 shares of Rivian Automotive stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $14.50, for a total transaction of $190,588.00. Following the sale, the chief financial officer owned 827,201 shares in the company, valued at approximately $11,994,414.50. This trade represents a 1.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 51,167 shares of company stock valued at $788,306. Corporate insiders own 1.48% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Dimensional Fund Advisors LP boosted its holdings in Rivian Automotive by 0.3% during the first quarter. Dimensional Fund Advisors LP now owns 7,438,776 shares of the electric vehicle automaker's stock valued at $111,896,000 after purchasing an additional 25,382 shares in the last quarter. Bank of New York Mellon Corp acquired a new position in shares of Rivian Automotive in the 2nd quarter worth approximately $49,915,000. Hsbc Holdings PLC raised its holdings in shares of Rivian Automotive by 55.8% in the 1st quarter. Hsbc Holdings PLC now owns 3,097,836 shares of the electric vehicle automaker's stock worth $46,625,000 after buying an additional 1,109,171 shares in the last quarter. Swiss National Bank lifted its position in shares of Rivian Automotive by 8.2% during the 1st quarter. Swiss National Bank now owns 2,331,000 shares of the electric vehicle automaker's stock worth $35,082,000 after buying an additional 176,500 shares during the period. Finally, Sumitomo Mitsui Trust Group Inc. lifted its position in shares of Rivian Automotive by 22.1% during the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,970,637 shares of the electric vehicle automaker's stock worth $29,441,000 after buying an additional 356,540 shares during the period. Institutional investors and hedge funds own 66.25% of the company's stock.

About Rivian Automotive

Rivian Automotive, Inc. designs, develops and manufactures electric vehicles and related technology. Its consumer lineup includes the R1T electric pickup truck and R1S electric sport utility vehicle, while its commercial offerings include electric delivery vans and fleet services. Founded in 2009 by RJ Scaringe, the company began delivering its R1T and R1S vehicles in 2021. Rivian also develops vehicle software, charging solutions and services intended to support its consumer and commercial customers.

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