Rivian Automotive (NASDAQ:RIVN) Shares Up 1.2% - Should You Buy?

Key Points

• Rivian shares rose 1.2% to $15.47 in mid-day trading, though volume was 44% below the average session level.
• Analyst sentiment remains mixed: 12 analysts rate the stock a Buy, nine a Hold and seven a Sell, producing a consensus Hold rating and an average price target of $19.00.
• Rivian exceeded quarterly expectations with an adjusted loss of $0.63 per share versus the $0.66 estimate and revenue of $1.66 billion, up 27.2% year over year; however, the company remains unprofitable, with analysts forecasting a full-year loss of $2.98 per share.

Rivian Automotive, Inc. (NASDAQ:RIVN - Get Free Report)'s share price shot up 1.2% during mid-day trading on Friday. The stock traded as high as $15.65 and last traded at $15.47. Approximately 16,515,355 shares changed hands during trading, a decline of 44% from the average session volume of 29,428,471 shares. The stock had previously closed at $15.29.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on RIVN. Piper Sandler upgraded Rivian Automotive from a "neutral" rating to an "overweight" rating and increased their price objective for the stock from $18.00 to $20.00 in a report on Monday, July 27th. Needham & Company LLC reiterated a "buy" rating on shares of Rivian Automotive in a research note on Monday, August 10th. Weiss Ratings raised shares of Rivian Automotive from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Monday, July 6th. UBS Group increased their price target on shares of Rivian Automotive from $16.00 to $17.00 and gave the stock a "neutral" rating in a research note on Thursday, July 9th. Finally, TD Cowen raised their price target on shares of Rivian Automotive from $20.00 to $21.00 and gave the company a "buy" rating in a report on Friday, July 31st. Twelve equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and seven have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $19.00.

Rivian Automotive Trading Up 1.2%

The stock has a market capitalization of $22.40 billion, a price-to-earnings ratio of -6.00 and a beta of 1.62. The company has a current ratio of 2.10, a quick ratio of 1.65 and a debt-to-equity ratio of 0.87. The company has a fifty day moving average of $15.98 and a two-hundred day moving average of $15.91.

Rivian Automotive (NASDAQ:RIVN - Get Free Report) last announced its earnings results on Thursday, July 30th. The electric vehicle automaker reported ($0.63) EPS for the quarter, topping the consensus estimate of ($0.66) by $0.03. Rivian Automotive had a negative net margin of 54.96% and a negative return on equity of 73.90%. The firm had revenue of $1.66 billion for the quarter, compared to the consensus estimate of $1.52 billion. During the same quarter last year, the firm posted ($0.97) EPS. The business's quarterly revenue was up 27.2% on a year-over-year basis. On average, research analysts expect that Rivian Automotive, Inc. will post -2.98 EPS for the current year.

Insider Activity

In other news, CFO Claire McDonough sold 13,144 shares of the company's 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 completion of the transaction, the chief financial officer owned 827,201 shares of the company's stock, valued at approximately $11,994,414.50. This represents a 1.56% decrease in their ownership of the stock. The sale was disclosed in a 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Michael John Callahan sold 15,000 shares of the stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $16.29, for a total transaction of $244,350.00. Following the completion of the sale, the insider owned 1,016,776 shares of the company's stock, valued at approximately $16,563,281.04. The trade was a 1.45% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 56,167 shares of company stock valued at $963,306. Insiders own 1.48% of the company's stock.

Institutional Trading of Rivian Automotive

A number of hedge funds have recently modified their holdings of the company. Norges Bank bought a new stake in shares of Rivian Automotive during the fourth quarter worth $220,323,000. Bank of New York Mellon Corp bought a new position in Rivian Automotive in the second quarter valued at about $49,915,000. Capital International Investors lifted its position in Rivian Automotive by 13.2% during the 4th quarter. Capital International Investors now owns 20,769,844 shares of the electric vehicle automaker's stock valued at $409,374,000 after purchasing an additional 2,418,717 shares during the period. MUFG Securities EMEA plc bought a new position in shares of Rivian Automotive in the 4th quarter valued at about $24,263,000. Finally, Hsbc Holdings PLC grew its position in shares of Rivian Automotive by 55.8% during 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 during the period. Institutional investors own 66.25% of the company's stock.

Rivian Automotive Company Profile

Rivian Automotive, Inc designs, develops and manufactures electric vehicles and related technology. Its consumer vehicle lineup includes the R1T electric pickup truck and R1S electric SUV, which are designed for on-road and off-road use. The company also develops charging solutions, vehicle software and connected services intended to support the ownership and operation of its electric vehicles.

Rivian produces electric commercial vans for delivery and fleet applications, including vehicles developed through its relationship with Amazon.

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