Rivian Automotive (NASDAQ:RIVN) Stock Jumps 2.9% - Should You Buy?

Key Points

• Rivian shares rose 2.9% to $14.01 in Monday mid-day trading, on volume about 25% below its average.
• The automaker beat quarterly expectations, reporting adjusted earnings of a $0.48 loss per share versus the forecast $0.64 loss, and revenue of $2.15 billion, up 38.3% year over year.
• Analysts’ consensus rating is Hold, with an average price target of $19.50; recent individual target changes were mixed.

Rivian Automotive, Inc. (NASDAQ:RIVN - Get Free Report) shot up 2.9% during mid-day trading on Monday. The stock traded as high as $14.15 and last traded at $14.01. Approximately 22,027,076 shares changed hands during mid-day trading, a decline of 25% from the average session volume of 29,485,369 shares. The stock had previously closed at $13.61.

Analysts Set New Price Targets

A number of analysts recently commented on RIVN shares. Wells Fargo & Company upped their price target on shares of Rivian Automotive from $15.00 to $16.00 and gave the company an "equal weight" rating in a research note on Friday, July 31st. Cantor Fitzgerald reduced their price objective on shares of Rivian Automotive from $19.00 to $16.00 and set a "neutral" rating for the company in a research note on Friday, October 30th. DA Davidson reduced their price objective on shares of Rivian Automotive from $17.00 to $15.00 and set a "neutral" rating for the company in a research note on Friday. Jefferies Financial Group raised shares of Rivian Automotive from a "hold" rating to a "buy" rating and set a $17.00 target price on the stock in a report on Friday, October 30th. Finally, Deutsche Bank Aktiengesellschaft downgraded Rivian Automotive from a "buy" rating to an "underperform" rating in a research report on Tuesday, August 4th. Fifteen equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and five have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Rivian Automotive has a consensus rating of "Hold" and an average price target of $19.50.

Rivian Automotive Stock Up 2.9%

The company has a debt-to-equity ratio of 0.78, a current ratio of 2.18 and a quick ratio of 1.70. The company has a market cap of $20.28 billion, a PE ratio of -6.23 and a beta of 1.64. The company has a fifty day moving average price of $14.21 and a 200 day moving average price of $15.40.

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

Insider Buying and Selling at Rivian Automotive

In other news, CFO Claire McDonough sold 8,023 shares of Rivian Automotive stock in a transaction on Thursday, August 20th. The shares were 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 directly owned 819,178 shares of the company's stock, valued at approximately $13,106,848. The trade was a 0.97% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michael John Callahan sold 15,000 shares of the company's stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $15.00, for a total transaction of $225,000.00. Following the completion of the transaction, the insider owned 1,001,776 shares of the company's stock, valued at $15,026,640. This trade represents a 1.48% 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. In the last 90 days, insiders have sold 51,167 shares of company stock worth $788,306. Corporate insiders own 1.48% of the company's stock.

Institutional Investors Weigh In On Rivian Automotive

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

Rivian primarily serves customers in the United States and Canada.

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