Rivian Automotive (NASDAQ:RIVN) Cut to Sell at Wall Street Zen

Key Points

• Rivian Automotive was downgraded from a "hold" to a "sell" rating by Wall Street Zen, reflecting a significant shift in analyst sentiment toward the company's stock.
• Rivian's stock target prices have been reduced by several firms, with JPMorgan lowering it to $10.00 and Wells Fargo to $13.00, while the current consensus rating is "Hold" with an average target price of $14.38.
• Rivian reported a quarterly earnings per share of ($0.57), surpassing estimates, with revenue of $1.24 billion, indicating a slight growth compared to the previous year's quarter.

Rivian Automotive (NASDAQ:RIVN - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Saturday.

Several other equities analysts have also issued reports on the company. JPMorgan Chase & Co. lowered their price target on Rivian Automotive from $11.00 to $10.00 and set an "underweight" rating for the company in a research report on Friday, April 25th. Wells Fargo & Company decreased their target price on Rivian Automotive from $14.00 to $13.00 and set an "equal weight" rating for the company in a research report on Wednesday, May 7th. Guggenheim cut shares of Rivian Automotive from a "buy" rating to a "neutral" rating in a research note on Monday, July 14th. Robert W. Baird reduced their price target on shares of Rivian Automotive from $16.00 to $14.00 and set a "neutral" rating for the company in a research note on Tuesday, April 15th. Finally, Cantor Fitzgerald reiterated a "neutral" rating and issued a $15.00 price target on shares of Rivian Automotive in a research note on Wednesday, May 7th. Four equities research analysts have rated the stock with a sell rating, eighteen have given a hold rating and five have issued a buy rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $14.38.

Rivian Automotive Price Performance

RIVN opened at $14.01 on Friday. The stock has a 50-day moving average price of $14.01 and a 200-day moving average price of $13.06. The company has a debt-to-equity ratio of 0.71, a current ratio of 3.73 and a quick ratio of 2.80. The firm has a market cap of $15.84 billion, a PE ratio of -3.77 and a beta of 1.81. Rivian Automotive has a 1 year low of $9.50 and a 1 year high of $17.15.

Rivian Automotive (NASDAQ:RIVN - Get Free Report) last posted its quarterly earnings results on Tuesday, May 6th. The electric vehicle automaker reported ($0.57) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.80) by $0.23. The firm had revenue of $1.24 billion during the quarter, compared to analyst estimates of $981.52 million. Rivian Automotive had a negative return on equity of 60.64% and a negative net margin of 76.83%. Rivian Automotive's quarterly revenue was up 3.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($1.48) EPS. Sell-side analysts predict that Rivian Automotive will post -3.2 earnings per share for the current fiscal year.

Insider Activity at Rivian Automotive

In related news, CFO Claire Mcdonough sold 17,185 shares of the stock in a transaction that occurred on Friday, May 16th. The shares were sold at an average price of $15.39, for a total value of $264,477.15. Following the completion of the sale, the chief financial officer directly owned 824,875 shares of the company's stock, valued at approximately $12,694,826.25. This represents a 2.04% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Robert J. Scaringe sold 71,428 shares of the stock in a transaction that occurred on Monday, May 19th. The stock was sold at an average price of $15.36, for a total transaction of $1,097,134.08. Following the completion of the sale, the chief executive officer directly owned 1,483,111 shares of the company's stock, valued at $22,780,584.96. This represents a 4.59% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 205,694 shares of company stock valued at $3,144,612 over the last three months. 2.16% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Rivian Automotive

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Sequoia Financial Advisors LLC increased its holdings in Rivian Automotive by 9.7% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 16,554 shares of the electric vehicle automaker's stock worth $227,000 after acquiring an additional 1,458 shares in the last quarter. Vanguard Personalized Indexing Management LLC increased its holdings in Rivian Automotive by 15.1% in the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 77,017 shares of the electric vehicle automaker's stock worth $1,058,000 after acquiring an additional 10,083 shares in the last quarter. Udine Wealth Management Inc. purchased a new stake in Rivian Automotive in the 2nd quarter worth approximately $937,000. Aberdeen Group plc increased its holdings in Rivian Automotive by 10.5% in the 2nd quarter. Aberdeen Group plc now owns 1,681,152 shares of the electric vehicle automaker's stock worth $23,099,000 after acquiring an additional 159,566 shares in the last quarter. Finally, Blair William & Co. IL boosted its stake in Rivian Automotive by 9.5% in the 2nd quarter. Blair William & Co. IL now owns 45,076 shares of the electric vehicle automaker's stock worth $619,000 after purchasing an additional 3,909 shares during the period. 66.25% of the stock is owned by hedge funds and other institutional investors.

Rivian Automotive Company Profile

Rivian Automotive, Inc, together with its subsidiaries, designs, develops, manufactures, and sells electric vehicles and accessories. The company offers consumer vehicles, including a two-row, five-passenger pickup truck under the R1T brand, a three-row, seven-passenger sport utility vehicle under the R1S name.

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