Rivian Automotive (NASDAQ:RIVN) Rating Lowered to "Strong Sell" at Zacks Research

Key Points

• Zacks Research has downgraded Rivian Automotive from a "hold" rating to a "strong sell" rating, indicating a negative outlook for the company's stock.
• Despite the downgrade, some analysts, like Goldman Sachs, have increased their price target for Rivian from $12.00 to $15.00, maintaining a "neutral" rating.
• Rivian reported a loss of ($0.97) per share for the last quarter, missing estimates, though revenue grew by 12.5% year-over-year, highlighting ongoing challenges amid a mixed analyst sentiment.

Rivian Automotive (NASDAQ:RIVN - Get Free Report) was downgraded by equities researchers at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued on Tuesday,Zacks.com reports.

Other research analysts have also issued research reports about the company. The Goldman Sachs Group lifted their price target on Rivian Automotive from $12.00 to $15.00 and gave the stock a "neutral" rating in a research report on Monday, September 29th. Canaccord Genuity Group reiterated a "buy" rating and issued a $21.00 price target on shares of Rivian Automotive in a research report on Friday, October 3rd. Guggenheim lowered Rivian Automotive from a "buy" rating to a "neutral" rating in a research report on Monday, July 14th. JPMorgan Chase & Co. dropped their price target on Rivian Automotive from $10.00 to $9.00 and set an "underweight" rating for the company in a research report on Wednesday, August 6th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Rivian Automotive in a research report on Wednesday, October 8th. Five analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $13.90.

Rivian Automotive Stock Up 2.2%

Shares of NASDAQ:RIVN opened at $13.41 on Tuesday. The company has a market cap of $16.27 billion, a price-to-earnings ratio of -4.15 and a beta of 1.82. Rivian Automotive has a 12 month low of $9.50 and a 12 month high of $17.15. The company has a current ratio of 3.44, a quick ratio of 2.72 and a debt-to-equity ratio of 0.73. The company has a 50-day moving average price of $13.56 and a 200 day moving average price of $13.44.

Rivian Automotive (NASDAQ:RIVN - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The electric vehicle automaker reported ($0.97) EPS for the quarter, missing the consensus estimate of ($0.65) by ($0.32). The company had revenue of $1.30 billion during the quarter, compared to analysts' expectations of $1.27 billion. Rivian Automotive had a negative return on equity of 58.07% and a negative net margin of 68.06%.The company's revenue was up 12.5% on a year-over-year basis. During the same quarter in the prior year, the business posted ($1.46) EPS. As a group, equities research analysts predict that Rivian Automotive will post -3.2 earnings per share for the current year.

Insider Activity at Rivian Automotive

In other news, CFO Claire Mcdonough sold 7,247 shares of Rivian Automotive stock in a transaction that occurred on Monday, August 18th. The shares were sold at an average price of $12.28, for a total transaction of $88,993.16. Following the completion of the sale, the chief financial officer owned 789,445 shares of the company's stock, valued at approximately $9,694,384.60. The trade was a 0.91% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Robert J. Scaringe sold 17,450 shares of Rivian Automotive stock in a transaction that occurred on Tuesday, September 16th. The shares were sold at an average price of $14.00, for a total transaction of $244,300.00. Following the sale, the chief executive officer directly owned 1,316,205 shares of the company's stock, valued at $18,426,870. This represents a 1.31% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 42,147 shares of company stock valued at $577,593 in the last ninety days. Insiders own 2.16% of the company's stock.

Institutional Trading of Rivian Automotive

Several institutional investors and hedge funds have recently modified their holdings of RIVN. Assetmark Inc. raised its stake in shares of Rivian Automotive by 315.6% during the second quarter. Assetmark Inc. now owns 1,787 shares of the electric vehicle automaker's stock valued at $25,000 after acquiring an additional 1,357 shares in the last quarter. Banque Transatlantique SA raised its stake in Rivian Automotive by 13,194.1% in the first quarter. Banque Transatlantique SA now owns 2,260 shares of the electric vehicle automaker's stock worth $26,000 after buying an additional 2,243 shares in the last quarter. Newbridge Financial Services Group Inc. raised its stake in Rivian Automotive by 113.6% in the second quarter. Newbridge Financial Services Group Inc. now owns 1,880 shares of the electric vehicle automaker's stock worth $26,000 after buying an additional 1,000 shares in the last quarter. Fairman Group LLC bought a new position in Rivian Automotive in the second quarter worth approximately $31,000. Finally, WPG Advisers LLC bought a new position in Rivian Automotive in the first quarter worth approximately $34,000. Institutional investors own 66.25% of the company's stock.

About Rivian Automotive

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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