Rivian Automotive (NASDAQ:RIVN) Trading Down 2% - Time to Sell?

Key Points

• Rivian shares fell 2% to $15.54, below both their 50-day and 200-day moving averages. The stock has a $22.5 billion market capitalization and remains unprofitable, with analysts expecting a full-year loss of $2.98 per share.
• Recent quarterly results were better than expected: Rivian reported a loss of $0.63 per share versus the $0.66 consensus estimate, while revenue rose 27.2% year over year to $1.66 billion.
• Analyst sentiment is mixed, with 12 Buy, nine Hold, and seven Sell ratings, producing a consensus “Hold” rating and an average price target of $19. Institutional investors own 66.25% of the company, while insiders have sold shares under pre-arranged trading plans.

Rivian Automotive, Inc. (NASDAQ:RIVN - Get Free Report)'s stock price was down 2% on Tuesday . The company traded as low as $15.30 and last traded at $15.54. Approximately 21,032,572 shares changed hands during trading, a decline of 29% from the average session volume of 29,666,182 shares. The stock had previously closed at $15.86.

Analyst Ratings Changes

A number of research firms have recently commented on RIVN. Weiss Ratings raised shares of Rivian Automotive from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Monday, July 6th. Jefferies Financial Group increased their price target on Rivian Automotive from $16.00 to $17.00 and gave the stock a "hold" rating in a report on Tuesday, July 7th. BNP Paribas Exane boosted their price objective on Rivian Automotive from $22.00 to $24.00 and gave the company an "outperform" rating in a research note on Wednesday, July 8th. Needham & Company LLC reaffirmed a "buy" rating on shares of Rivian Automotive in a research note on Monday, August 10th. Finally, Wells Fargo & Company lifted their target price on Rivian Automotive from $15.00 to $16.00 and gave the stock an "equal weight" rating in a report on Friday, July 31st. Twelve analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and seven have given a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $19.00.

Rivian Automotive Price Performance

The business has a 50-day moving average of $16.31 and a 200 day moving average of $15.91. The firm has a market capitalization of $22.50 billion, a PE ratio of -6.02 and a beta of 1.62. The company has a current ratio of 2.10, a quick ratio of 1.65 and a debt-to-equity ratio of 0.87.

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 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 company had revenue of $1.66 billion for the quarter, compared to the consensus estimate of $1.52 billion. During the same period in the previous year, the firm earned ($0.97) EPS. The firm's quarterly revenue was up 27.2% on a year-over-year basis. As a group, research analysts anticipate that Rivian Automotive, Inc. will post -2.98 EPS for the current fiscal year.

Insider Transactions at Rivian Automotive

In other Rivian Automotive news, Director Karen Boone sold 20,000 shares of the company's stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $20.00, for a total value of $400,000.00. Following the transaction, the director directly owned 110,000 shares in the company, valued at $2,200,000. This represents a 15.38% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Claire McDonough sold 8,023 shares of the business's stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $16.00, for a total transaction of $128,368.00. Following the completion of the transaction, the chief financial officer directly owned 819,178 shares of the company's stock, valued at approximately $13,106,848. This represents a 0.97% 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. Over the last three months, insiders sold 41,167 shares of company stock worth $718,956. Insiders own 1.48% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Norges Bank purchased a new stake in shares of Rivian Automotive during the fourth quarter valued at approximately $220,323,000. Bank of New York Mellon Corp purchased a new position in shares of Rivian Automotive in the second quarter valued at about $49,915,000. Capital International Investors raised its stake in shares of Rivian Automotive by 13.2% during the fourth quarter. Capital International Investors now owns 20,769,844 shares of the electric vehicle automaker's stock valued at $409,374,000 after acquiring an additional 2,418,717 shares during the last quarter. MUFG Securities EMEA plc purchased a new stake in shares of Rivian Automotive during the fourth quarter worth about $24,263,000. Finally, Hsbc Holdings PLC grew its stake in shares of Rivian Automotive by 55.8% in the first quarter. Hsbc Holdings PLC now owns 3,097,836 shares of the electric vehicle automaker's stock worth $46,625,000 after purchasing an additional 1,109,171 shares during the last quarter. 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 vehicle lineup includes the R1T electric pickup truck and R1S electric SUV, which are designed for on-road and off-road use. The company also develops charging solutions, vehicle software and connected services intended to support the ownership and operation of its electric vehicles.

Rivian produces electric commercial vans for delivery and fleet applications, including vehicles developed through its relationship with Amazon.

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