Rivian Automotive (NASDAQ:RIVN) Stock Price Down 1.1% - Should You Sell?

Key Points

• Rivian shares fell 1.1% to $15.74 in Friday’s trading, below the 50-day moving average of $16.56. Analysts have a consensus “Hold” rating and an average price target of $19.05.
• The company’s latest quarterly results exceeded expectations, with an adjusted loss of $0.63 per share versus estimates of $0.66 and revenue of $1.66 billion, up 27.2% year over year. Rivian remains unprofitable, posting a negative net margin of 54.96%.
• Insiders sold 41,167 shares worth about $719,000 over the past three months, while institutional investors and hedge funds own 66.25% of the stock.

Shares of Rivian Automotive, Inc. (NASDAQ:RIVN - Get Free Report) fell 1.1% on Friday . The stock traded as low as $15.56 and last traded at $15.74. 13,862,233 shares were traded during mid-day trading, a decline of 54% from the average session volume of 30,062,254 shares. The stock had previously closed at $15.91.

Analyst Ratings Changes

RIVN has been the subject of several analyst reports. Needham & Company LLC restated a "buy" rating on shares of Rivian Automotive in a research report on Monday, August 10th. Wells Fargo & Company upped their price target on Rivian Automotive from $15.00 to $16.00 and gave the company an "equal weight" rating in a research report on Friday, July 31st. Wall Street Zen upgraded Rivian Automotive from a "sell" rating to a "hold" rating in a research note on Saturday, August 1st. Piper Sandler upgraded shares of Rivian Automotive from a "neutral" rating to an "overweight" rating and boosted their target price for the company from $18.00 to $20.00 in a research note on Monday, July 27th. Finally, TD Cowen upped their target price on shares of Rivian Automotive from $20.00 to $21.00 and gave the stock a "buy" rating in a report on Friday, July 31st. Twelve investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and seven have given a Sell rating to the stock. Based on data from MarketBeat.com, Rivian Automotive presently has a consensus rating of "Hold" and a consensus target price of $19.05.

Rivian Automotive Price Performance

The stock has a fifty day moving average of $16.56 and a 200-day moving average of $15.91. The firm has a market capitalization of $22.79 billion, a P/E ratio of -6.10 and a beta of 1.62. The company has a quick ratio of 1.65, a current ratio of 2.10 and a debt-to-equity ratio of 0.87.

Rivian Automotive (NASDAQ:RIVN - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The electric vehicle automaker reported ($0.63) EPS for the quarter, topping analysts' consensus estimates 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 analyst estimates of $1.52 billion. During the same quarter in the prior year, the firm earned ($0.97) EPS. The company's revenue was up 27.2% on a year-over-year basis. Equities analysts predict that Rivian Automotive, Inc. will post -2.98 EPS for the current fiscal year.

Insider Activity at Rivian Automotive

In other news, CFO Claire McDonough sold 8,023 shares of the stock in a transaction that occurred 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 sale, the chief financial officer directly owned 819,178 shares of the company's stock, valued at $13,106,848. This represents a 0.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Karen Boone sold 20,000 shares of the firm's stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $20.00, for a total transaction of $400,000.00. Following the completion of the sale, the director directly owned 110,000 shares of the company's stock, valued at approximately $2,200,000. This represents a 15.38% decrease in their position. 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 41,167 shares of company stock worth $718,956 over the last three months. 1.48% of the stock is owned by insiders.

Hedge Funds Weigh In On Rivian Automotive

Large investors have recently made changes to their positions in the company. California State Teachers Retirement System increased its position in Rivian Automotive by 1,696.5% in the second quarter. California State Teachers Retirement System now owns 22,267,094 shares of the electric vehicle automaker's stock worth $386,334,000 after purchasing an additional 21,027,647 shares during the period. Norges Bank bought a new position in shares of Rivian Automotive in the 4th quarter valued at about $220,323,000. Renaissance Technologies LLC boosted its stake in shares of Rivian Automotive by 32.4% in the 4th quarter. Renaissance Technologies LLC now owns 16,397,496 shares of the electric vehicle automaker's stock valued at $323,195,000 after purchasing an additional 4,012,386 shares during the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of Rivian Automotive during the 2nd quarter worth approximately $49,915,000. Finally, Capital International Investors grew its position in shares of 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 worth $409,374,000 after buying an additional 2,418,717 shares during the period. Institutional investors and hedge funds own 66.25% of the company's stock.

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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