Rivian Automotive (NASDAQ:RIVN) Shares Down 1.2% on Disappointing Earnings

Key Points

• Rivian Automotive's shares fell by 1.2% after reporting an earnings per share (EPS) of ($0.97), which missed analysts' expectations by ($0.32).
• The company's revenue for the quarter reached $1.30 billion, slightly above the expected $1.27 billion, marking a 12.5% year-over-year increase.
• Analysts have mixed ratings on Rivian, with price targets ranging from $12.00 to $18.00, and a consensus average price target of $14.30.

Rivian Automotive, Inc. (NASDAQ:RIVN - Get Free Report) shares traded down 1.2% during trading on Wednesday following a dissappointing earnings announcement. The stock traded as low as $11.57 and last traded at $12.00. 26,781,559 shares traded hands during mid-day trading, a decline of 18% from the average session volume of 32,729,133 shares. The stock had previously closed at $12.15.

The electric vehicle automaker reported ($0.97) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.65) by ($0.32). Rivian Automotive had a negative return on equity of 60.64% and a negative net margin of 76.83%. The business had revenue of $1.30 billion for the quarter, compared to analyst estimates of $1.27 billion. During the same quarter in the previous year, the firm posted ($1.46) EPS. The business's revenue for the quarter was up 12.5% on a year-over-year basis.

Analyst Upgrades and Downgrades

RIVN has been the topic of a number of research reports. Wedbush lowered their price target on Rivian Automotive from $20.00 to $18.00 and set an "outperform" rating on the stock in a report on Wednesday, May 7th. Piper Sandler upped their price target on Rivian Automotive from $13.00 to $15.00 and gave the stock a "neutral" rating in a report on Thursday, May 22nd. Cantor Fitzgerald restated a "neutral" rating and issued a $15.00 price target on shares of Rivian Automotive in a report on Wednesday, May 7th. The Goldman Sachs Group lowered their price target on Rivian Automotive from $14.00 to $12.00 and set a "neutral" rating on the stock in a report on Thursday, April 10th. Finally, Mizuho increased their target price on Rivian Automotive from $11.00 to $13.00 and gave the company a "neutral" rating in a report on Friday, May 16th. Four research analysts have rated the stock with a sell rating, eighteen have given a hold rating and five have assigned a buy rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $14.30.

Insider Buying and Selling

In other news, CFO Claire Mcdonough sold 17,185 shares of Rivian Automotive stock in a transaction that occurred on Friday, May 16th. The stock was sold at an average price of $15.39, for a total transaction of $264,477.15. Following the sale, the chief financial officer owned 824,875 shares of the company's stock, valued at approximately $12,694,826.25. The trade was a 2.04% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Robert J. Scaringe sold 71,428 shares of the business's stock in a transaction that occurred on Monday, May 19th. The stock was sold at an average price of $15.36, for a total value of $1,097,134.08. Following the sale, the chief executive officer directly owned 1,483,111 shares in the company, valued at approximately $22,780,584.96. The trade was a 4.59% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 205,694 shares of company stock worth $3,144,612. Corporate insiders own 2.16% of the company's stock.

Hedge Funds Weigh In On Rivian Automotive

Several institutional investors and hedge funds have recently modified their holdings of RIVN. Resona Asset Management Co. Ltd. boosted its holdings in Rivian Automotive by 7.9% in the second quarter. Resona Asset Management Co. Ltd. now owns 254,223 shares of the electric vehicle automaker's stock worth $3,489,000 after purchasing an additional 18,652 shares in the last quarter. Atlantic Union Bankshares Corp bought a new stake in Rivian Automotive during the second quarter valued at about $54,000. Asahi Life Asset Management CO. LTD. bought a new stake in Rivian Automotive during the second quarter valued at about $330,000. First Horizon Advisors Inc. boosted its holdings in Rivian Automotive by 72.2% during the second quarter. First Horizon Advisors Inc. now owns 5,773 shares of the electric vehicle automaker's stock valued at $79,000 after acquiring an additional 2,421 shares during the period. Finally, Genus Capital Management Inc. boosted its holdings in Rivian Automotive by 66.8% during the second quarter. Genus Capital Management Inc. now owns 287,650 shares of the electric vehicle automaker's stock valued at $3,952,000 after acquiring an additional 115,210 shares during the period. 66.25% of the stock is currently owned by hedge funds and other institutional investors.

Rivian Automotive Price Performance

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 stock's fifty day simple moving average is $13.56 and its 200-day simple moving average is $13.00. The company has a market capitalization of $13.61 billion, a P/E ratio of -3.23 and a beta of 1.80.

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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