Rivian Automotive (NASDAQ:RIVN) Stock Price Down 3.4% - Time to Sell?

Key Points

• Rivian shares fell 3.4% to $11.43, below both its 50-day ($14.90) and 200-day ($15.65) moving averages, on trading volume that was 15% below the daily average.
• Analyst sentiment is mixed but averages a “Hold” rating, with a consensus price target of $19.86; ratings range from “Sell” to “Outperform.”
• Rivian exceeded quarterly earnings and revenue expectations, but remains unprofitable, with a negative net margin of 54.96% and analysts forecasting a full-year loss of $2.94 per share.

Rivian Automotive, Inc. (NASDAQ:RIVN - Get Free Report)'s share price was down 3.4% on Monday. The company traded as low as $11.42 and last traded at $11.43. 24,741,167 shares changed hands during trading, a decline of 15% from the average daily volume of 28,986,646 shares. The stock had previously closed at $11.83.

Analysts Set New Price Targets

Several analysts have weighed in on the stock. Citigroup initiated coverage on shares of Rivian Automotive in a research note on Monday, September 14th. They issued a "hold" rating and a $18.00 price target for the company. Wall Street Zen raised shares of Rivian Automotive from a "sell" rating to a "hold" rating in a research note on Saturday, September 19th. Stifel Nicolaus set a $22.00 target price on Rivian Automotive in a research note on Monday, August 24th. Royal Bank Of Canada lifted their price objective on Rivian Automotive from $14.00 to $16.00 and gave the stock a "sector perform" rating in a research report on Friday, July 31st. Finally, Yorkville Ives started coverage on Rivian Automotive in a report on Tuesday, October 6th. They set an "outperform" rating and a $20.00 target price for the company. Thirteen analysts have rated the stock with a Buy rating, nine have given a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $19.86.

Rivian Automotive Price Performance

The stock has a market cap of $16.55 billion, a P/E ratio of -4.43 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 $14.90 and a 200-day moving average price of $15.65.

Rivian Automotive (NASDAQ:RIVN - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The electric vehicle automaker reported ($0.63) earnings per share for the quarter, topping the consensus estimate 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 company had revenue of $1.66 billion for the quarter, compared to analysts' expectations of $1.52 billion. During the same period in the prior year, the firm earned ($0.97) earnings per share. The firm's revenue for the quarter was up 27.2% on a year-over-year basis. On average, analysts forecast that Rivian Automotive, Inc. will post -2.94 earnings per share for the current fiscal year.

Insider Transactions at Rivian Automotive

In related news, CFO Claire McDonough sold 13,144 shares of the company's stock in a transaction that occurred on Tuesday, August 18th. The stock was 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. This represents a 1.56% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. 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 firm's stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $15.00, for a total value of $225,000.00. Following the transaction, the insider directly owned 1,001,776 shares of the company's stock, 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. Over the last three months, insiders have sold 51,167 shares of company stock valued at $788,306. 1.48% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. MCF Advisors LLC increased its holdings in shares of Rivian Automotive by 3,500.0% during the second quarter. MCF Advisors LLC now owns 1,800 shares of the electric vehicle automaker's stock valued at $31,000 after acquiring an additional 1,750 shares in the last quarter. Oslo Pensjonsforsikring AS bought a new position in Rivian Automotive in the 1st quarter worth about $39,000. Ancora Advisors LLC purchased a new stake in Rivian Automotive during the 2nd quarter valued at about $44,000. Root Financial Partners LLC purchased a new stake in Rivian Automotive during the 3rd quarter valued at about $57,000. Finally, Continuum Advisory LLC purchased a new position in Rivian Automotive in the second quarter worth about $75,000. Hedge funds and other institutional investors own 66.25% of the company's stock.

Rivian Automotive Company Profile

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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