Rivian Automotive (NASDAQ:RIVN) Trading Down 2.7% - Here's Why

Key Points

• Rivian shares fell 2.7% to $14.99 in mid-day trading, with volume about 25% above the average session level.
• Analyst sentiment remains mixed: the stock has a consensus “Hold” rating from 28 analysts and an average price target of $19.00.
• Rivian exceeded quarterly expectations with adjusted EPS of -$0.63 versus the -$0.66 estimate and revenue of $1.66 billion, though it continues to report substantial losses and negative profitability metrics.

Rivian Automotive, Inc. (NASDAQ:RIVN - Get Free Report)'s stock price traded down 2.7% during mid-day trading on Friday . The stock traded as low as $14.91 and last traded at $14.99. Approximately 37,030,704 shares traded hands during mid-day trading, an increase of 25% from the average session volume of 29,690,012 shares. The stock had previously closed at $15.40.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on RIVN. Citigroup started coverage on shares of Rivian Automotive in a research note on Monday. They set a "hold" rating and a $18.00 price objective on the stock. Weiss Ratings upgraded shares of Rivian Automotive from a "sell (e+)" rating to a "sell (d-)" rating in a report on Monday, July 6th. BNP Paribas Exane boosted their price target on shares of Rivian Automotive from $22.00 to $24.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 8th. Deutsche Bank Aktiengesellschaft lowered Rivian Automotive from a "buy" rating to an "underperform" rating in a research note on Tuesday, August 4th. Finally, Wall Street Zen downgraded shares of Rivian Automotive from a "hold" rating to a "sell" rating in a research report on Saturday, September 5th. Twelve research 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. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $19.00.

Rivian Automotive Stock Down 2.7%

The firm has a market cap of $21.70 billion, a PE ratio of -5.81 and a beta of 1.62. The company has a debt-to-equity ratio of 0.87, a current ratio of 2.10 and a quick ratio of 1.65. The business has a fifty day moving average price of $16.21 and a two-hundred day moving average price of $15.91.

Rivian Automotive (NASDAQ:RIVN - Get Free Report) last announced 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 return on equity of 73.90% and a negative net margin of 54.96%.The firm had revenue of $1.66 billion during the quarter, compared to analyst estimates of $1.52 billion. During the same period last year, the company posted ($0.97) EPS. The business's quarterly revenue was up 27.2% compared to the same quarter last year. On average, analysts anticipate that Rivian Automotive, Inc. will post -2.98 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Karen Boone sold 20,000 shares of Rivian Automotive stock in a transaction on Monday, July 6th. The stock was sold at an average price of $20.00, for a total transaction of $400,000.00. Following the completion of the sale, the director owned 110,000 shares of the company's stock, valued at approximately $2,200,000. This trade represents a 15.38% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 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 dated Thursday, August 20th. The shares were sold at an average price of $16.00, for a total value of $128,368.00. Following the completion of the transaction, the chief financial officer owned 819,178 shares in the company, valued at $13,106,848. This trade represents a 0.97% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 56,167 shares of company stock worth $963,306. 1.48% of the stock is owned by company insiders.

Hedge Funds Weigh In On Rivian Automotive

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Norges Bank acquired a new stake in Rivian Automotive during the 4th quarter worth approximately $220,323,000. Bank of New York Mellon Corp acquired a new position in shares of Rivian Automotive in the second quarter valued at approximately $49,915,000. Capital International Investors boosted its holdings in shares of Rivian Automotive by 13.2% in 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 buying an additional 2,418,717 shares during the period. MUFG Securities EMEA plc bought a new stake in shares of Rivian Automotive during the fourth quarter worth $24,263,000. Finally, Hsbc Holdings PLC increased its position in shares of Rivian Automotive by 55.8% during the first quarter. Hsbc Holdings PLC now owns 3,097,836 shares of the electric vehicle automaker's stock worth $46,625,000 after acquiring an additional 1,109,171 shares in the last quarter. Institutional investors own 66.25% of the company's stock.

Rivian Automotive Company Profile

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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