Rivian Automotive (NASDAQ:RIVN) Stock Price Down 3% - Time to Sell?

Key Points

• Rivian shares fell 3% to $13.54 in Monday trading, below both the 50-day and 200-day moving averages. Trading volume was also 33% below the daily average.
• Analyst sentiment is mixed but leans toward caution: Rivian has a consensus “Hold” rating and an average price target of $19, with 12 buys, nine holds, and seven sells.
• The company exceeded quarterly revenue and adjusted its loss slightly better than expected, but remains unprofitable, with a negative net margin of 54.96% and analysts forecasting a full-year loss of $2.95 per share.

Shares of Rivian Automotive, Inc. (NASDAQ:RIVN - Get Free Report) were down 3% during trading on Monday. The company traded as low as $13.48 and last traded at $13.54. 19,733,807 shares traded hands during mid-day trading, a decline of 33% from the average daily volume of 29,344,227 shares. The stock had previously closed at $13.96.

Wall Street Analyst Weigh In

RIVN has been the topic of several recent analyst reports. TD Cowen lifted 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. Wall Street Zen upgraded shares of Rivian Automotive from a "sell" rating to a "hold" rating in a report on Saturday, September 19th. Cantor Fitzgerald restated a "neutral" rating on shares of Rivian Automotive in a report on Monday, September 28th. Piper Sandler raised shares of Rivian Automotive from a "neutral" rating to an "overweight" rating and raised their target price for the stock from $18.00 to $20.00 in a research report on Monday, July 27th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Rivian Automotive in a research note on Friday, October 2nd. Twelve equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and seven have assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $19.00.

Rivian Automotive Price Performance

The stock has a market cap of $19.60 billion, a P/E ratio of -5.25 and a beta of 1.62. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.65 and a current ratio of 2.10. The firm has a 50-day moving average price of $15.53 and a 200-day moving average price of $15.83.

Rivian Automotive (NASDAQ:RIVN - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The electric vehicle automaker reported ($0.63) earnings per share for the quarter, beating the consensus estimate of ($0.66) by $0.03. The company had revenue of $1.66 billion for the quarter, compared to analyst estimates of $1.52 billion. Rivian Automotive had a negative return on equity of 73.90% and a negative net margin of 54.96%. The firm's revenue was up 27.2% on a year-over-year basis. During the same period in the previous year, the company posted ($0.97) earnings per share. On average, analysts forecast that Rivian Automotive, Inc. will post -2.95 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Rivian Automotive news, CFO Claire McDonough sold 13,144 shares of the firm's stock in a transaction on Tuesday, August 18th. The stock was 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 trade represents a 1.56% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. 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 business's stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $15.00, for a total transaction of $225,000.00. Following the sale, the insider owned 1,001,776 shares in the company, valued at approximately $15,026,640. This trade represents a 1.48% 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. In the last quarter, insiders sold 51,167 shares of company stock valued at $788,306. 1.48% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the business. GK Wealth Management LLC bought a new position in shares of Rivian Automotive during the third quarter valued at $92,000. Wedmont Private Capital boosted its stake in Rivian Automotive by 3.7% in the 3rd quarter. Wedmont Private Capital now owns 33,095 shares of the electric vehicle automaker's stock worth $474,000 after purchasing an additional 1,169 shares in the last quarter. GAMMA Investing LLC boosted its stake in Rivian Automotive by 65.8% in the 3rd quarter. GAMMA Investing LLC now owns 23,686 shares of the electric vehicle automaker's stock worth $354,000 after purchasing an additional 9,397 shares in the last quarter. Farther Finance Advisors LLC boosted its stake in Rivian Automotive by 8.3% in the 3rd quarter. Farther Finance Advisors LLC now owns 153,004 shares of the electric vehicle automaker's stock worth $2,286,000 after purchasing an additional 11,707 shares in the last quarter. Finally, Everhart Financial Group Inc. grew its position in Rivian Automotive by 21.3% during the 3rd quarter. Everhart Financial Group Inc. now owns 20,340 shares of the electric vehicle automaker's stock valued at $304,000 after purchasing an additional 3,572 shares during the last quarter. 66.25% of the stock is currently owned by institutional investors.

About Rivian Automotive

Rivian Automotive, Inc is an electric vehicle manufacturer focused on developing and producing vehicles designed for adventure, utility and commercial use. The company's lineup includes the R1T electric pickup truck and R1S electric SUV, which feature all-electric powertrains, advanced driver-assistance technology and software-enabled vehicle systems.

Rivian also develops electric commercial vehicles, including delivery vans, along with vehicle software, charging solutions and related services.

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