Rivian Automotive (NASDAQ:RIVN) Stock Price Down 1.3% - Time to Sell?

Key Points

• Rivian shares fell 1.3% to $11.67 on Wednesday, below both their 50-day and 200-day moving averages. Trading volume was about 27.4 million shares, modestly below the average session volume.
• Rivian delivered a record 19,248 vehicles in the third quarter, up 46% year over year, while Volkswagen’s reported $1 billion loan and the upcoming R2 platform could improve its financial runway and long-term margins.
• Despite improving deliveries, Rivian continues to face negative automotive gross profit, cash-burn and execution risks, including uncertainty over Volkswagen’s software strategy. Analysts’ average rating is “Hold”, with a consensus price target of $19.86.

Rivian Automotive, Inc. (NASDAQ:RIVN - Get Free Report)'s stock price fell 1.3% during trading on Wednesday. The stock traded as low as $11.44 and last traded at $11.67. 27,408,099 shares were traded during mid-day trading, a decline of 6% from the average session volume of 29,008,969 shares. The stock had previously closed at $11.82.

More Rivian Automotive News

Here are the key news stories impacting Rivian Automotive this week:

• Positive Sentiment: Rivian delivered a record 19,248 vehicles in the third quarter, a 46% year-over-year increase that reportedly exceeded expectations. Investors are also looking for further progress from the upcoming R2 platform, which is viewed as important to improving scale and margins. Rivian Bets on R2 Margins as Volkswagen’s $1 Billion Loan Buys Time
• Positive Sentiment: Volkswagen’s reported $1 billion loan and Rivian’s partnership provide additional financial runway, while software and services are generating better margins than vehicle manufacturing. Investors are also focused on Rivian’s autonomy technology and the potential for future software licensing revenue. Rivian Bets on R2 Margins as Volkswagen’s $1 Billion Loan Buys Time
• Positive Sentiment: A photograph of a Walmart-branded Rivian delivery van fueled speculation that Walmart could become a commercial-fleet customer. The report is unconfirmed, so any stock benefit depends on an actual order or partnership announcement. RIVN Stock Rebounds As Unconfirmed Walmart Delivery Van Sparks Fleet Hopes
• Neutral Sentiment: Rivian is scheduled to report third-quarter results after Thursday’s market close. The main catalysts will be deliveries, automotive gross margin, cash usage, R2 timing and management’s outlook for profitability. Rivian Reports Q3: Everything You Need to Know Ahead of Earnings
• Neutral Sentiment: Volkswagen’s planned Audi expansion and broader technology investments could support the automaker’s U.S. operations, but the developments have no immediate, direct impact on Rivian’s financial results. Volkswagen Bets $4B on Audi’s U.S. Expansion
• Neutral Sentiment: An AutoCamp financing announcement mentioned Rivian among its brand collaborators, but provided no material new business or financial information for Rivian. AutoCamp’s Collaborations Span Travel, Hospitality and Outdoor Recreation
• Negative Sentiment: Reports that Volkswagen may use XPeng’s software for some European EVs raise concern that Rivian could capture less software revenue from its Volkswagen partnership. Rivian is also increasing autonomy investment, adding execution risk before those initiatives generate meaningful returns. Volkswagen Software Doubts Might Change the Case for Investing in Rivian
• Negative Sentiment: Automotive gross profit remained negative at $36 million in the second quarter, underscoring Rivian’s continuing margin challenges and cash-burn risk despite improving deliveries. Rivian Bets on R2 Margins as Volkswagen’s $1 Billion Loan Buys Time

Analysts Set New Price Targets

Several research firms recently weighed in on RIVN. Morgan Stanley lifted their target price on Rivian Automotive from $13.00 to $14.00 and gave the company an "underweight" rating in a research report on Friday, July 31st. Stifel Nicolaus set a $22.00 price target on Rivian Automotive in a research report on Monday, August 24th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Rivian Automotive in a research note on Friday, October 2nd. Wall Street Zen raised Rivian Automotive from a "sell" rating to a "hold" rating in a research report on Saturday, September 19th. Finally, Deutsche Bank Aktiengesellschaft cut Rivian Automotive from a "buy" rating to an "underperform" rating in a research report on Tuesday, August 4th. Thirteen investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and five have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $19.86.

Rivian Automotive Stock Down 1.3%

The stock has a market capitalization of $16.90 billion, a P/E ratio of -4.52 and a beta of 1.62. The company's 50-day moving average price is $14.75 and its 200 day moving average price is $15.61. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.65 and a current ratio of 2.10.

Rivian Automotive (NASDAQ:RIVN - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The electric vehicle automaker reported ($0.63) EPS for the quarter, beating analysts' consensus estimates of ($0.66) by $0.03. Rivian Automotive had a negative return on equity of 73.90% and a negative net margin of 54.96%. The business had revenue of $1.66 billion for the quarter, compared to analysts' expectations of $1.52 billion. During the same period last year, the firm earned ($0.97) earnings per share. The business's quarterly revenue was up 27.2% on a year-over-year basis. As a group, equities analysts expect that Rivian Automotive, Inc. will post -2.92 earnings per share for the current year.

Insiders Place Their Bets

In other Rivian Automotive news, CFO Claire McDonough sold 13,144 shares of the business's stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $14.50, for a total value of $190,588.00. Following the sale, the chief financial officer owned 827,201 shares in the company, valued at $11,994,414.50. The trade was a 1.56% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available 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 Thursday, October 1st. The shares were sold at an average price of $15.00, for a total transaction of $225,000.00. Following the transaction, the insider directly owned 1,001,776 shares of the company's stock, valued at $15,026,640. This trade represents a 1.48% 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. In the last 90 days, insiders have sold 51,167 shares of company stock valued at $788,306. 1.48% of the stock is owned by company insiders.

Institutional Investors Weigh In On Rivian Automotive

A number of hedge funds have recently made changes to their positions in RIVN. MCF Advisors LLC grew its holdings in Rivian Automotive by 3,500.0% during the 2nd quarter. MCF Advisors LLC now owns 1,800 shares of the electric vehicle automaker's stock valued at $31,000 after buying an additional 1,750 shares in the last quarter. Ancora Advisors LLC purchased a new stake in shares of Rivian Automotive during the 2nd quarter worth approximately $44,000. Oslo Pensjonsforsikring AS purchased a new stake in shares of Rivian Automotive during the 1st quarter worth approximately $39,000. Root Financial Partners LLC purchased a new stake in shares of Rivian Automotive during the 3rd quarter worth approximately $57,000. Finally, Continuum Advisory LLC bought a new position in shares of Rivian Automotive during the 2nd quarter valued at approximately $75,000. 66.25% of the stock is currently owned by hedge funds and other institutional investors.

About Rivian Automotive

Rivian Automotive, Inc is an electric vehicle manufacturer that designs, develops and produces all-electric trucks, sport utility vehicles and commercial delivery vans. The company focuses on vehicles intended for outdoor recreation, everyday transportation and fleet use, combining battery-electric powertrains with software and connected-vehicle technologies.

Rivian's consumer vehicle lineup includes the R1T pickup truck and R1S sport utility vehicle. The company also develops electric commercial vans for business and delivery fleets, including vehicles produced through its relationship with Amazon.

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