Rivian Automotive (NASDAQ:RIVN) Shares Down 2% - Here's What Happened

Key Points

• Rivian Automotive's stock fell 2% during mid-day trading, reaching a low of $12.86, with trading volume significantly down at approximately 10 million shares compared to the average of over 33 million.
• Equity analysts have lowered price targets for Rivian, with UBS and Morgan Stanley setting new targets at $12.00, while overall ratings reveal five “Buy,” eighteen “Hold,” and three “Sell” recommendations.
• Rivian reported a disappointing quarterly earnings result, posting an EPS of -$0.97, which was lower than analysts' expectations, despite a year-over-year revenue increase of 12.5% to $1.30 billion.

Rivian Automotive, Inc. (NASDAQ:RIVN - Get Free Report)'s stock price was down 2% during mid-day trading on Tuesday . The stock traded as low as $12.86 and last traded at $12.85. Approximately 10,189,789 shares traded hands during mid-day trading, a decline of 70% from the average daily volume of 33,548,430 shares. The stock had previously closed at $13.11.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on RIVN shares. UBS Group reduced their price target on Rivian Automotive from $13.00 to $12.00 and set a "neutral" rating for the company in a research report on Wednesday, August 6th. Morgan Stanley dropped their price objective on Rivian Automotive from $13.00 to $12.00 and set an "equal weight" rating on the stock in a research note on Wednesday, August 13th. Guggenheim downgraded Rivian Automotive from a "buy" rating to a "neutral" rating in a research report on Monday, July 14th. Cantor Fitzgerald reissued a "neutral" rating and set a $15.00 price target on shares of Rivian Automotive in a research report on Wednesday, May 7th. Finally, Stifel Nicolaus decreased their target price on Rivian Automotive from $18.00 to $16.00 and set a "buy" rating on the stock in a report on Friday, August 8th. Five research analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $13.69.

Rivian Automotive Stock Performance

The company has a debt-to-equity ratio of 0.73, a quick ratio of 2.72 and a current ratio of 3.44. The company has a market cap of $15.82 billion, a price-to-earnings ratio of -4.00 and a beta of 1.80. The company has a fifty day moving average of $12.99 and a two-hundred day moving average of $12.94.

Rivian Automotive (NASDAQ:RIVN - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The electric vehicle automaker reported ($0.97) EPS for the quarter, missing analysts' consensus estimates of ($0.65) by ($0.32). Rivian Automotive had a negative net margin of 68.06% and a negative return on equity of 58.07%. The firm had revenue of $1.30 billion for the quarter, compared to the consensus estimate of $1.27 billion. During the same period last year, the company posted ($1.46) EPS. The business's revenue was up 12.5% compared to the same quarter last year. Equities research analysts anticipate that Rivian Automotive, Inc. will post -3.2 EPS for the current year.

Insider Activity

In other news, CFO Claire Mcdonough sold 7,247 shares of the firm's stock in a transaction that occurred on Monday, August 18th. The shares were sold at an average price of $12.28, for a total value of $88,993.16. Following the transaction, the chief financial officer owned 789,445 shares in the company, valued at approximately $9,694,384.60. This trade represents a 0.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 2.16% of the company's stock.

Institutional Investors Weigh In On Rivian Automotive

A number of hedge funds have recently made changes to their positions in RIVN. PFS Partners LLC raised its stake in shares of Rivian Automotive by 1,882.0% during the first quarter. PFS Partners LLC now owns 1,982 shares of the electric vehicle automaker's stock valued at $25,000 after acquiring an additional 1,882 shares in the last quarter. Assetmark Inc. boosted its holdings in Rivian Automotive by 315.6% during the second quarter. Assetmark Inc. now owns 1,787 shares of the electric vehicle automaker's stock worth $25,000 after buying an additional 1,357 shares in the last quarter. Banque Transatlantique SA boosted its holdings in Rivian Automotive by 13,194.1% during 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 position in Rivian Automotive by 113.6% during the second quarter. Newbridge Financial Services Group Inc. now owns 1,880 shares of the electric vehicle automaker's stock worth $26,000 after acquiring an additional 1,000 shares during the period. Finally, Fairman Group LLC acquired a new position in Rivian Automotive during the second quarter worth $31,000. 66.25% of the stock is currently owned by hedge funds and other institutional investors.

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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